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The external costs of electricity generation: a comparison of generation technologies

Abstract

Electricity generation, like any economic activity, leads to costs that can be grouped in two categories: (a) private or internal and (b) external. Private costs are those paid by the buyers and sellers of energy within the market system. The external costs, however, are not included in the market price mechanism as they accrue to third parties other than the buyer and the seller. External costs include environmental external costs and non-environmental external costs. There are two conditions for the existence of external costs: (a) market failure, or the inability of markets to account for the cost of environmental impacts of energy generation and the market structure and (b) government or policy failure, or the policies that cause private generators to pay either higher or lower costs than they would if these interventions did not exist. A third reason can be added for the existence of non-environmental externalities: energy security, or certain costs faced by society as a result of over-reliance on imported energy. Section A introduces the concept of external costs and benefits. Section B looks at the environmental externalities of energy generation. The procedure is to develop the methodology to estimate what are known as externality adders, i.e.  More>>
Authors:
Ozdemiroglu, E [1] 
  1. Economics for the Environment Consultancy, London (United Kingdom)
Publication Date:
Dec 01, 1995
Product Type:
Conference
Report Number:
INIS-XT-001; CONF-9512165-
Reference Number:
SCA: 210800; PA: AIX-30:019830; EDB-99:065541; SN: 99002090896
Resource Relation:
Conference: Symposium on development and utilization of biomass energy resources in developing countries, Vienna (Austria), 11-14 Dec 1995; Other Information: DN: 10 refs, 5 tabs; PBD: Dec 1995; Related Information: Is Part Of Symposium on development and utilization of biomass energy resources in developing countries. Proceedings. V. 1: Thematic papers; PB: 364 p.
Subject:
21 NUCLEAR POWER REACTORS AND ASSOCIATED PLANTS; COAL; COST; ECONOMIC ANALYSIS; ENERGY RECOVERY; ENVIRONMENTAL IMPACTS; HYDROELECTRIC POWER; MARKET; MUNICIPAL WASTES; NUCLEAR FUELS; POWER GENERATION; RENEWABLE ENERGY SOURCES; UNITED KINGDOM; WIND POWER
OSTI ID:
354672
Research Organizations:
United Nations Industrial Development Organization (UNIDO), Vienna (Austria)
Country of Origin:
UNIDO
Language:
English
Other Identifying Numbers:
Other: ON: DE99621757; TRN: XT9900023019830
Availability:
INIS; OSTI as DE99621757
Submitting Site:
INIS
Size:
pp. 283-300
Announcement Date:

Citation Formats

Ozdemiroglu, E. The external costs of electricity generation: a comparison of generation technologies. UNIDO: N. p., 1995. Web.
Ozdemiroglu, E. The external costs of electricity generation: a comparison of generation technologies. UNIDO.
Ozdemiroglu, E. 1995. "The external costs of electricity generation: a comparison of generation technologies." UNIDO.
@misc{etde_354672,
title = {The external costs of electricity generation: a comparison of generation technologies}
author = {Ozdemiroglu, E}
abstractNote = {Electricity generation, like any economic activity, leads to costs that can be grouped in two categories: (a) private or internal and (b) external. Private costs are those paid by the buyers and sellers of energy within the market system. The external costs, however, are not included in the market price mechanism as they accrue to third parties other than the buyer and the seller. External costs include environmental external costs and non-environmental external costs. There are two conditions for the existence of external costs: (a) market failure, or the inability of markets to account for the cost of environmental impacts of energy generation and the market structure and (b) government or policy failure, or the policies that cause private generators to pay either higher or lower costs than they would if these interventions did not exist. A third reason can be added for the existence of non-environmental externalities: energy security, or certain costs faced by society as a result of over-reliance on imported energy. Section A introduces the concept of external costs and benefits. Section B looks at the environmental externalities of energy generation. The procedure is to develop the methodology to estimate what are known as externality adders, i.e. a monetary value for the environmental costs and benefits associated with selected generation technologies, expressed in pence per kilowatt-hour. The result is an `adder` because, in principle, the sum can be added to the private cost of generating electricity to obtain a measure of the `full` or `social` cost. The selected generation technologies are conventional coal, wind power, small-scale hydro, energy crops, incineration of municipal solid waste and energy recovery from landfill. The data reported are based on the application of the technologies in Scotland, but the methodology can be applied anywhere. Section C takes a brief look at the non-environmental externalities including the general theory and evidence from the United Kingdom, including the non-fossil fuel obligation, a system for encouraging energy generation from nuclear fuels and renewable resources. Section D discusses various strategies for internalizing external costs of conventional forms of energy, including emission taxes and tradable emission permits. (author) 10 refs, 5 tabs}
place = {UNIDO}
year = {1995}
month = {Dec}
}