In this study, local air quality impacts of a proposed conventional coal-fired power plant in the Ice1 region has been investigated using numerical dispersion modeling studies coupled with a GIS application. Within the impact area of the facility, Industrial Source Complex Short Term (ISCST2) dispersion model has been used to estimate ground-level concentrations of air pollutants originating from the power plant. For the same impact area, GIS applications have been utilised to determine the agricultural yield distribution. For this purpose, relevant satellite images were digitised, classified and statistically analyzed. Based on the predicted ground-level pollutant concentrations and sensitivity of the agricultural crops to the pollutants, agricultural yield loss was estimated for the impact area. The results have been quantified and valuated in monetary terms for the purpose of performing an environmental cost benefit analysis. Comparison of the conventional cost benefit analysis with the environmental cost benefit analysis showed the significance of the external cost of the proposed facility, resulting from the environmental damages.