On the Use of 'Adders' by Public Utility Commissions
AbstractState public utility commissions are developing programs to reduce emissions from electric generation facilities. Programs call for minimizing the total cost of meeting future demands for power, where pollution damages are part of the total cost. In the process of choosing new generation sources, dirtier technologies are handicapped relative to cleaner technologies through the use of "adders" which are meant to measure damages. However, the damage costs are left at the planning stage; they are not included in electricity rates. This practice coupled with standard rate setting procedures may lead to inferior outcomes.
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Bibliographic InfoArticle provided by International Association for Energy Economics in its journal The Energy Journal.
Volume (Year): Volume15 (1994)
Issue (Month): Number 1 ()
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- Burtraw, Dallas & Krupnick, Alan, 1996.
"The Second-Best Use of Social Cost Estimates,"
dp-96-29, Resources For the Future.
- Dallas Burtraw & Karen Palmer & Alan J. Krupnick, 1997.
""Second-Best" Adjustments to Externality Estimates in Electricity Planning with Competition,"
University of Wisconsin Press, vol. 73(2), pages 224-239.
- Burtraw, Dallas & Palmer, Karen & Krupnick, Alan, 1995. ""Second-Best" Adjustments to Externality Estimates in Electricity Planning with Competition," Discussion Papers dp-96-04, Resources For the Future.
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