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.