Decarbonizing the Non-Carbon: Benefit-Cost Analysis of Phasing Out the Most Potent GHG in Interconnected Power Grids

Sulfur hexafluoride (SF6), the most potent greenhouse gas, is widely used in gas-insulated switchgear (GIS) in the power industry. With increasing electrification and deepening renewable penetration, GIS installations and SF6 emissions are expected to rise. This work provides the first comprehensive analysis of the social economic viability of eliminating SF6 in high-voltage GIS equipment. We develop a flexible and scalable benefit-cost analysis framework to assess the net social benefits of SF6 replacement strategies. Using data from the Chinese power industry, we find that the social cost of carbon and firms’ compliance with SF6 standards are critical factors. Although high-level policies to eradicate SF6 in GIS are generally beneficial, net benefits can vary significantly across local implementation realities. Nonetheless, investing in SF6 alternatives is highly cost-effective in reducing greenhouse gas emissions compared with other green technologies like wind and solar power.