Oil Shale, 2007, Vol

Oil Shale, 2007, Vol. 24, No. 2, pp. 175–188

INTERNALIZING OF EXTERNAL COSTS IN ELECTRICITY GENERATION

E. KAREDA, T. KALLASTE, K. TENNO, A. LAUR, Ü. EHRLICH

This article seeks to describe methodology for taking into account the damage cost caused to the environment by electricity generation, so-called internalizing of external costs, i.e. ExternE, and presents examples of using it in Eastern European countries. The cost rates calculated on the basis of ExternE methodology are tested? on data of Estonian oil shale-fired power plants. Also the issue of optimality of the external costs in electricity producer price is discussed.

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