Policy making regarding biomass co-firing is difficult. The article provides a benefit-cost analysis for decision makers to facilitate policy making process to implement efficient biomass co-firing policy. The additional cost is the sum of cost of the biom ass procurement and biomass transportation. Co-benefits are sales of greenhouse gas emission credits and health benefit from reducing harmful air pollutants, especially particulate matter. The benefit-cost analysis is constructed for semi-arid U.S. region, Utah, where biomass supply is limited. Results show that biomass co-firing is not economically feasible in Utah but would be feasible when co-benefits are considered. Benefit-cost ratio is critically dependent upon biomass and carbon credit prices. The procedure to build the benefit-cost ratio can be applied for any region with other scenarios suggested in this study.


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