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  • Internalizing environmental costs : A survey of progress in estimating the external environmental costs of electricity production and a review of market-based policies to incorporate them


The production of electricity creates damage to the environment whose costs may not be fully reflected in the prices paid by consumers for electricity services. Failure to incorporate these external costs leads to economically inefficient production and consumption decisions. The present work reviews two related efforts to address this market distortion. The first concerns progress in estimating the uninternalised environmental costs of electricity production. The second concerns market-based approaches to internalising these costs in electricity production and consumption decisions.

Additional information

Authors: ETO J H, JRC Ispra (IT);HELCKÉ G, JRC Ispra (IT)
Bibliographic Reference: EUR 13323 EN (1991) 35 pp., MF, ECU 4, blow-up copy ECU 5
Availability: (2)
Record Number: 199111030 / Last updated on: 1994-12-02
Original language: en
Available languages: en