Albedo and vegetation demand-side management options for warm climates

For electric utilities, demand-side management (DSM) can reduce electric load and shift load from peak to off-peak periods. In general, the investor in DSM collects the reward with lower electric bills, excepting a positive externality because of reduced tropospheric and stratospheric air pollution from fossil fuel power plants. In warm climates, DSM options include increasing albedo and vegetation, respectively, by painting surfaces white and planting trees; these DSM options are distinguished from all other DSM options because of ecosystem effects. Ambient temperature falls, mitigating the urban ‘heat island’, which reduces electric load and ozone formation. The investor in albedo and vegetation DSM options does not collect all of the reward from lower electric bills, since the lower ambient temperature provides savings to all customers who use electricity for air conditioning and refrigeration. Similar to other DSM options, air pollution is also reduced as a result of lower power plant emissions. Complex airshed models and electric utility system dispatch models are applied in this paper to account for some of these ecosystem effects. Unaccounted ecosystem effects remain, stymieing cost effectiveness analysis. © 1998 Elsevier Science B.V.