Should economic impacts be treated as externalities

Journal Article · Fri Mar 01 04:00:00 EST 1991 · Electricity Journal; (USA)

DOI:https://doi.org/10.1016/1040-6190(91)90172-P· OSTI ID:5679117

Sanghi, A K ^[1]

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1. New York State Energy Office, Albany (USA)

There is considerable debate over what is properly considered an externality. In a growing number of states, the inclusion of environmental externalities in bidding programs has gained a measure of acceptance. But many planners are going further, treating economic impacts - such as the creation of new jobs - as externalities. Studies which attempt to monetize the creation of new jobs for inclusion in the price of resources have also appeared in the literature. In this paper, the author argues against including economic impacts in the list of externalities. He maintains that such impacts do not constitute true externalities associated with electricity production, nor is there a justifiable economic method of assigning monetary values to them. This should not be construed as a recommendation to ignore economic impacts in the selection of utility resources; rather, it is simply a recommendation not to consider these impacts within the framework established for other externalities. 2 tabs.

• OSTI ID: 5679117
• Journal Information: Electricity Journal; (USA), Journal Name: Electricity Journal; (USA) Vol. 4:2; ISSN ELEJE; ISSN 1040-6190
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
290300 -- Energy Planning & Policy-- Environment
Health
& Safety
296000* -- Energy Planning & Policy-- Electric Power
ACCOUNTING
BIDS
ECONOMIC IMPACT
ELECTRIC UTILITIES
ENERGY SOURCE DEVELOPMENT
ENVIRONMENTAL IMPACTS
INSTITUTIONAL FACTORS
PUBLIC UTILITIES
SOCIO-ECONOMIC FACTORS