IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v33y2008i5p740-746.html
   My bibliography  Save this article

Internalizing externalities into capacity expansion planning: The case of electricity in Vietnam

Author

Listed:
  • Nguyen, Khanh Q.

Abstract

This paper examines the impacts of including external costs such as environmental and health damages from power production on power generation expansion planning in Vietnam. Using the MARKAL model and covering a 20-year period to 2025, the study shows that there are substantial changes in the generation structure in favor of renewable energy technologies and other low emitting technologies. These changes lead to a reduction in fossil fuel requirements, and consequently, a reduction of CO2, NOx, SO2, and PM emissions which could be expected to also reduce the associated environmental and human health impacts. The avoided external costs would be equivalent to 4.4US cent/kWh. However, these gains are not free as the additional electricity production cost would be around 2.6US cent/kWh higher if the switch to more expensive, but lower emitting technologies were made. The net benefit of internalizing these externalities is thus around 1.8US cent/kWh.

Suggested Citation

  • Nguyen, Khanh Q., 2008. "Internalizing externalities into capacity expansion planning: The case of electricity in Vietnam," Energy, Elsevier, vol. 33(5), pages 740-746.
    • Handle: RePEc:eee:energy:v:33:y:2008:i:5:p:740-746
    DOI: 10.1016/j.energy.2008.01.014
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544208000443
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2008.01.014?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Socrates Kypreos & Robert Krakowski, 2004. "Introducing externalities in the power-generation sector of China," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 22(2/3/4), pages 131-154.
    2. Nguyen, Khanh Q., 2007. "Impacts of wind power generation and CO2 emission constraints on the future choice of fuels and technologies in the power sector of Vietnam," Energy Policy, Elsevier, vol. 35(4), pages 2305-2312, April.
    3. Nguyen, Khanh Q., 2007. "Alternatives to grid extension for rural electrification: Decentralized renewable energy technologies in Vietnam," Energy Policy, Elsevier, vol. 35(4), pages 2579-2589, April.
    4. Sabine Messner, 1997. "Endogenized technological learning in an energy systems model," Journal of Evolutionary Economics, Springer, vol. 7(3), pages 291-313.
    5. Rafaj, Peter & Kypreos, Socrates, 2007. "Internalisation of external cost in the power generation sector: Analysis with Global Multi-regional MARKAL model," Energy Policy, Elsevier, vol. 35(2), pages 828-843, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Anandarajah, Gabrial & Strachan, Neil, 2010. "Interactions and implications of renewable and climate change policy on UK energy scenarios," Energy Policy, Elsevier, vol. 38(11), pages 6724-6735, November.
    2. Mainali, Brijesh & Silveira, Semida, 2013. "Alternative pathways for providing access to electricity in developing countries," Renewable Energy, Elsevier, vol. 57(C), pages 299-310.
    3. Alam Hossain Mondal, Md. & Mathur, Jyotirmay & Denich, Manfred, 2011. "Impacts of CO2 emission constraints on technology selection and energy resources for power generation in Bangladesh," Energy Policy, Elsevier, vol. 39(4), pages 2043-2050, April.
    4. Kannan, R., 2009. "Uncertainties in key low carbon power generation technologies - Implication for UK decarbonisation targets," Applied Energy, Elsevier, vol. 86(10), pages 1873-1886, October.
    5. Comodi, G. & Cioccolanti, L. & Gargiulo, M., 2012. "Municipal scale scenario: Analysis of an Italian seaside town with MarkAL-TIMES," Energy Policy, Elsevier, vol. 41(C), pages 303-315.
    6. Karali, Nihan & Park, Won Young & McNeil, Michael, 2017. "Modeling technological change and its impact on energy savings in the U.S. iron and steel sector," Applied Energy, Elsevier, vol. 202(C), pages 447-458.
    7. Shih, Yi-Hsuan & Tseng, Chao-Heng, 2014. "Cost-benefit analysis of sustainable energy development using life-cycle co-benefits assessment and the system dynamics approach," Applied Energy, Elsevier, vol. 119(C), pages 57-66.
    8. Singh, Anuraag & Triulzi, Giorgio & Magee, Christopher L., 2021. "Technological improvement rate predictions for all technologies: Use of patent data and an extended domain description," Research Policy, Elsevier, vol. 50(9).
    9. Philippe Aghion & Antoine Dechezleprêtre & David Hémous & Ralf Martin & John Van Reenen, 2016. "Carbon Taxes, Path Dependency, and Directed Technical Change: Evidence from the Auto Industry," Journal of Political Economy, University of Chicago Press, vol. 124(1), pages 1-51.
    10. Anandarajah, Gabrial & Gambhir, Ajay, 2014. "India’s CO2 emission pathways to 2050: What role can renewables play?," Applied Energy, Elsevier, vol. 131(C), pages 79-86.
    11. Daron Acemoglu & Philippe Aghion & Leonardo Bursztyn & David Hemous, 2012. "The Environment and Directed Technical Change," American Economic Review, American Economic Association, vol. 102(1), pages 131-166, February.
    12. Kaldellis, J.K. & Zafirakis, D. & Kondili, E., 2009. "Optimum autonomous stand-alone photovoltaic system design on the basis of energy pay-back analysis," Energy, Elsevier, vol. 34(9), pages 1187-1198.
    13. Mazur, Christoph & Hoegerle, Yannick & Brucoli, Maria & van Dam, Koen & Guo, Miao & Markides, Christos N. & Shah, Nilay, 2019. "A holistic resilience framework development for rural power systems in emerging economies," Applied Energy, Elsevier, vol. 235(C), pages 219-232.
    14. Samadi, Sascha, 2018. "The experience curve theory and its application in the field of electricity generation technologies – A literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 2346-2364.
    15. Rasmussen, Tobias N., 2001. "CO2 abatement policy with learning-by-doing in renewable energy," Resource and Energy Economics, Elsevier, vol. 23(4), pages 297-325, October.
    16. Thomson, Heather & Kempton, Willett, 2018. "Perceptions and attitudes of residents living near a wind turbine compared with those living near a coal power plant," Renewable Energy, Elsevier, vol. 123(C), pages 301-311.
    17. Zhang, Shuwei & Bauer, Nico & Yin, Guangzhi & Xie, Xi, 2020. "Technology learning and diffusion at the global and local scales: A modeling exercise in the REMIND model," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    18. Koji Tokimatsu & Louis Dupuy & Nick Hanley, 2019. "Using Genuine Savings for Climate Policy Evaluation with an Integrated Assessment Model," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 72(1), pages 281-307, January.
    19. Lahimer, A.A. & Alghoul, M.A. & Yousif, Fadhil & Razykov, T.M. & Amin, N. & Sopian, K., 2013. "Research and development aspects on decentralized electrification options for rural household," Renewable and Sustainable Energy Reviews, Elsevier, vol. 24(C), pages 314-324.
    20. Nir Becker & David Soloveitchik & Moshe Olshansky, 2012. "A Weighted Average Incorporation of Pollution Costs into the Electrical Expansion Planning," Energy & Environment, , vol. 23(1), pages 1-15, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:33:y:2008:i:5:p:740-746. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.