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With the growing importance of GHG reduction, wood pellets are considered as a cheaper renewable energy and carbon neutral. On the other hand, there is a concern that the burning wood pellets may release even more air pollutants such as CO and VOCs. In this study, we analyzed the social costs of burning fuels including wood pellets and coals based on the unit calorific value. The social costs were calculated by sum of the import costs of the fuels and the emission costs of the air pollutants. The results showed that wood pellets are inferior to coals in the aspect of the social costs. It is necessary to improve the quality of the wood pellets and pellet boiler facilities for being used eco-friendly energy sources in the future. We suggest that the control facilities of CO and VOCs should be installed, if the control costs are lower than the pollution costs.