Public Preferences and Random Utility Model for Pollution Impact Mitigation Measures in a Lignite-fired Power Plant at Mae Moh, Thailand
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Abstract
A coal-fired steam power plant located in Mae Moh, Lampang, a province in the north of Thailand has been in operation since 1978 with a generating capacity of 2,400 magawatts, and estimated SO2 emission of 150 tons/hour. In order to mitigate the impacts of the emission, flue gas desulphurization (FGD) units were installed and a community development fund was set up. Fifty five residents living in the vicinity of the power plant were asked to compare attributes of the two measures and stopping the operation under four different concerns, which are health, agriculture, income and job opportunity, and public acceptance. Utility functions are determined by an application of random utility model (RUM) with substitution units, which are the inverses of the attributes, of the three
measures as parameters. Plots of the utility functions at different levels of preferences are given to elaborate the significance of the community development fund and FGD units over the shutting off the power plant.
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