Regulating the Electricity Supply Industry by Valuing Environmental Effects: How Much Is the Emperor Wearing?
Author(s)
Stirling, Andrew
Abstract
One of the areas where monetary valuation of environmental externalities has been most extensively applied is in electric power generation. Numerous studies have estimated the value of externalities associated with fossil-fuel burning, nuclear, and renewable technologies. Many proposals have been made, and a few adopted, for use of these estimates in choosing new investments, operating electric power systems, and setting the rates paid by customers. This article examines and critiques both the theoretical arguments for valuation and its practical application in the electricity industry.
