The External Costs of Electricity Generation: Lessons from the US Experience
Some American electric utilities have been required since 1989 to incorporate environmental costs into their assessment criteria of competing projects for a given required capacity. In doing this, their local regulators are trying to reduce the competitive disadvantage faced by DSM programs and renewable-source electricity production. It is obvious, though, that this requirement, other than being heavily criticized, has not produced expected results. Selected values, as well as the existence of an unfavourable bias towards new facilities, have created a number of controversies. Above all, the ongoing reorganization of the Californian electric industry has led to the complete disappearance of this requirement.
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