1994 | OriginalPaper | Chapter
Evaluation of Instruments for the Incorporation of Externalities
Author : Rainer Friedrich
Published in: Social Costs of Energy
Publisher: Springer Berlin Heidelberg
Included in: Professional Book Archive
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The neglect of environmental damage and other external effects when deciding about investments in the field of electricity supply may cause wrong allocations of resources. A first step to avoid such misallocations is the quantification and monetizing of the external effects. Once the external costs are known, optimal decisions resp. optimal energy supply systems can be identified.