External costs from coal-fired thermal plants and sulphur dioxide emission limit values for new plants in Bosnia and Herzegovina

► External costs due to SO2 emissions from coal-fired plants have been calculated. ► Benefits of lowering the limit to 200 mg/m³ are greater than the additional costs. ► The difference for two scenarios between benefits and costs is not large. ► We do not recommend a limit tighter than 400 mg/m3 for a country like BH.