Environmental externalities: Thinking globally, taxing locally

Journal Article · Mon Mar 01 04:00:00 EST 1993 · Public Utilities Fortnightly; (United States)

OSTI ID:6499433

Trisko, E M

Assigning monetary externality values to the airborne emissions of electric power plants is gaining the attention of state utility commissions as a means to measure the social costs of alternative energy investments. Some commissions are using environmental externalities to encourage utility investments in energy conservation and renewable energy technologies such as solar, wind, and biomass. However, the monetization of externalities through so-called adders to direct generation costs can lead to inefficient resource allocation and expose consumers to electric rate increases without corresponding environmental benefits. The addition of externality values to direct electric generation costs distorts the economics of power supply planning by creating artificial subsidies for generation sources that are not currently competitive in the market. Businesses and consumers will be forced to support higher-cost sources of electric generation as a consequence. Because pollutant emissions of all new sources of electric generation are stringently regulated, and generally are well below those of existing fossil-fired sources, little demonstrable environmental benefit would result from the expanded use of externality valuation.

• OSTI ID: 6499433
• Journal Information: Public Utilities Fortnightly; (United States), Journal Name: Public Utilities Fortnightly; (United States) Vol. 131:5; ISSN PUFNAV; ISSN 0033-3808
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
296000* -- Energy Planning & Policy-- Electric Power
BIOMASS
CARBON COMPOUNDS
CARBON DIOXIDE
CARBON OXIDES
CARBONACEOUS MATERIALS
CHALCOGENIDES
COAL
DIESEL FUELS
DISTILLATES
ECONOMIC ANALYSIS
ECONOMICS
ELECTRIC UTILITIES
ENERGY
ENERGY SOURCES
ENVIRONMENTAL IMPACTS
FLUIDS
FOSSIL FUELS
FUEL GAS
FUEL OILS
FUELS
GAS FUELS
GAS OILS
GASES
GASOLINE
GREENHOUSE GASES
HEATING OILS
LAWS
LIQUID FUELS
MATERIALS
NATURAL GAS
NITROGEN COMPOUNDS
NITROGEN OXIDES
OXIDES
OXYGEN COMPOUNDS
PETROLEUM
PETROLEUM DISTILLATES
PETROLEUM FRACTIONS
PETROLEUM PRODUCTS
POLLUTION LAWS
POLLUTION REGULATIONS
POWER
PRICING REGULATIONS
PUBLIC UTILITIES
REGULATIONS
RENEWABLE ENERGY SOURCES
SOLAR ENERGY
STATE GOVERNMENT
SULFUR COMPOUNDS
SULFUR DIOXIDE
SULFUR OXIDES
TAXES
US CLEAN AIR ACT
WIND POWER