This study attempts to examine the natural gas fired power plants in Iran. The required data from natural gas fired power plants were gathered during 2008. The characteristics of thirty two gas turbine power plants and twenty steam power plants have been measured. Their emission factor values were then compared with the standards of Energy Protection Agency, Euro Union and World Bank. Emission factors of gas turbine and steam power plants show that gas turbine power plants have a better performance than steam power plants. For economic analysis, fuel consumption and environmental damages caused by the emitted pollutants are considered as cost functions; and electricity sales revenue are taken as benefit functions. All of these functions have been obtained according to the capacity factor. Total revenue functions show that gas turbine and steam power plants are economically efficient at 98.15% and 90.89% of capacity factor, respectively; this indicates that long operating years of power plants leads to reduction of optimum capacity factor. The stated method could be implemented to assess the economic status of a country's power plants where as efficient capacity factor close to one means that power plant works in much better condition. (C) 2013 Elsevier Ltd. All rights reserved.