Internalizing the Social Cost of Noise Pollution in the Cost Analysis of Electricity Generated by Wind Turbines

Abstract

The Social Cost of nuisance noise from a wind turbine is defined here as the additional cost to reduce the noise level at a receptor to an acceptable, non-nuisance value, i.e. to mitigate this cost. This acceptable sound level is considered to be 35 dB. Our example is a 10-kW (nominal power) wind turbine considered to supply the electrical energy needs of a 3-storey residential building in Tehran and Manjil. The turbine generates sound at 75 dB. To reduce the sound level at the third floor of the building to 35 dB, it was necessary to increase the height of the turbine from 24 m to 48 m. The initial installed cost of the turbine thereby increased from US$45,000 to US$55,000. The cost of electricity generated by the wind turbine, with- and without consideration of the social cost of the turbine noise pollution, was determined for the turbine operating in these cities. The annual average cost of electricity generated by the wind turbine located in Tehran with-and without consideration of the social cost was estimated to be US$1.50/kWh and US$1.25/kWh respectively. For the city of Manji, with relatively stronger wind speeds, these costs were US$0.60/kWh, and US$0.45/kWh, respectively.