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Monetizing Health Benefits of Offshore Wind Expansion and Demand Reduction Strategies in New Jersey

Professor Mark Rodgers, Rutgers Business School, led an analysis of the potential health benefits of wind energy expansion and energy demand reduction strategies for New Jersey. The analysis quantifies reductions in CO2, CH4, NOx and SO2 emissions associated with these strategies and evaluates the resulting health benefits of NOx and SO2 emissions reductions using the EPA COBRA Screening Tool.

The health benefits include reductions in adult and infant mortality, nonfatal heart attacks, hospital admissions related to respiratory and cardiovascular conditions, and lost work days. A combination of wind energy expansion and energy demand reduction strategies yields the largest health benefit with an economic value ranging from $13.3 billion to $30 billion over the study period of 2021 to 2035. Furthermore, this strategy significantly reduces CO2 and CH4 emissions in addition to the reductions in NOX and SO2 emissions.

The analysis uses advanced operations research models to design optimal pathways under three scenarios: electricity demand reduction, wind energy expansion, and a combination of both (synergistic energy integration) through the year 2035. The year 2035 was chosen as this allows for modeling these strategies on the same timescale addressing demand reduction policies in the New Jersey Energy Master Plan while incorporating New Jersey wind energy goals through 2035.

Under all three scenarios, emissions of NOX, SO2, CO2 and CH4 are lower than emissions under a baseline energy generation mix, but the most substantial emissions reductions occur when both electricity demand reduction and wind energy expansion are combined, with wind energy having a notable impact on emissions reductions. These findings underscore the progressive improvements that can be strategically implemented to address emissions reduction goals and their co-benefits with respect to health. 

Monetizing Health Benefits of Offshore Wind Expansion and Demand Reduction Strategies in New Jersey

FULL REPORT
March 2024

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