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A Method for a Comparison of Bulk Energy Transport Systems
We model alternatives for moving bulk energy, including both private costs and accounting for environmental externalities by requiring the transport system to satisfy environment, health, and safety standards. In particular, we focus on the cost and environmental trade-offs between “coal by wire,” mine-mouth generation with electricity transmission, and transporting the primary energy resources with generation near the customer. Having the bulk energy transport model satisfy standards avoids the controversy associated with estimating dollar costs for constrained visibility, noise, and 50/60 Hz electro-magnetic fields. A sensitivity analysis examines the implications of a range of carbon-dioxide discharge charges.