Improvements on economic analysis of coal transportation and power transmission

The economic analysis of coal transportation and power transmission in traditional studies do not consider the reliability and environmental factors and their influences on the critical distance. In this paper, the assessment method based on system operation simulation can evaluate the fuel cost, environmental cost and reliability cost in each time period. Economic analysis of the instance for coal transportation and power transmission is comparatively studied from the point of total social cost of unit electricity. Moreover, the sensitivity analysis of railway cost, environmental cost and reliability cost on critical distance is studied. The results show that the environmental cost and reliability cost have a great influence on the critical distance and cannot be ignored in the economic analysis of coal transportation and power transmission.