Capturing climate's effect on pollution abatement with an improved solution to the omitted variables problem

Research output: Contribution to journalArticle

11 Scopus citations

Abstract

Climate greatly affects the SO2 concentration abatement efforts of Mae Moh power plant which burns high sulfur content lignite in Northern Thailand. In summer months, hot air rising draws Mae Moh's SO2 emissions out of the Mae Moh valley. In contrast, temperature inversions in winter months prevent hot air in the valley from rising, resulting in the trapping and concentrating of SO2 emissions in the valley. The climatic conditions that affect Mae Moh's abatement efforts are so complex that adequately modeling them has been elusive. In this paper we use a new analytical technique, BD-RTPLS, which produces reduce form estimates while minimizing the influence of omitted variables, like climate. Using BD-RTPLS and monthly data, we tell Mae Moh how much electricity needs to be sacrificed from which generating units to most efficiently reduce SO2 concentrations in any given month.

Original languageEnglish (US)
Pages (from-to)540-557
Number of pages18
JournalEuropean Journal of Operational Research
Volume191
Issue number2
DOIs
StatePublished - Dec 1 2008

Keywords

  • Abatement costs
  • Electricity
  • Environment
  • Omitted variables
  • Weather

ASJC Scopus subject areas

  • Computer Science(all)
  • Modeling and Simulation
  • Management Science and Operations Research
  • Information Systems and Management

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