METHODOLOGY OF ECONOMIC EVALUATION OF EXTERNALITY EMISSIONS IN RELATION TO THE VALUE OF ELECTRIC POWER GENERATED BY THE BURNING OF BIOGAS IN THE RURAL ENVIRONMENT

Abstract

Brazilian cattle raising needs greater automation as a way to improve productivity and at the same time new ways to meet the growing energy demand. Thus, an alternative is to use renewable sources of electric energy such as biogas. This work proposes a methodology for economic evaluation of the externality denominated emissions, originating from the generation of electric energy through the burning of biogas from residues of Brazilian livestock. Thus, an equation was proposed and applied to obtain the value of this externality as a percentage of the value of electric energy, where greater results indicate greater potential for this externality. The results showed that the emissions, assessed as an externality and quantified on the basis of carbon credits can account for up to 69.4% of the electricity price, but if quantified in relation to the social impact of carbon, the externality in reference exceeds the value of electricity, reaching 408.4%. As a result, it is clear that the use of biogas for power generation in livestock can present other valuable products in addition to electricity and, consequently, can add value to livestock activity.