IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v29y2004i12p2125-2144.html
   My bibliography  Save this article

Incorporating externalities into a full cost approach to electric power generation life-cycle costing

Author

Listed:
  • Roth, Ian F.
  • Ambs, Lawrence L.

Abstract

This study presents a full cost approach to determine the levelized cost of energy (LCOE) of 14 electricity generation technologies. It encompasses costs incurred at all stages of the fuel cycle, including those that are traditionally omitted from economic evaluations of generation technologies. Incorporating these “externalities” increases the likelihood of developing the most economical and sustainable power resource from a societal perspective. The following externalities are included in this analysis: damage from air pollution, energy security, transmission and distribution costs, and other environmental impacts. Incorporating externalities has a large impact on the LCOE and the relative attractiveness of electricity generation options. Results indicate that clean and efficient generation technologies are the most attractive when all options are examined using a full cost, levelized approach.

Suggested Citation

  • Roth, Ian F. & Ambs, Lawrence L., 2004. "Incorporating externalities into a full cost approach to electric power generation life-cycle costing," Energy, Elsevier, vol. 29(12), pages 2125-2144.
  • Handle: RePEc:eee:energy:v:29:y:2004:i:12:p:2125-2144 DOI: 10.1016/j.energy.2004.03.016
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544204000945
    Download Restriction: Full text for ScienceDirect subscribers only

    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. Rowe, Robert D. & Lang, Carolyn M. & Chestnut, Lauraine G., 1996. "Critical factors in computing externalities for electricity resources," Resource and Energy Economics, Elsevier, vol. 18(4), pages 363-394, December.
    2. Mirasgedis, S. & Diakoulaki, D., 1997. "Multicriteria analysis vs. externalities assessment for the comparative evaluation of electricity generation systems," European Journal of Operational Research, Elsevier, vol. 102(2), pages 364-379, October.
    3. Vollebergh, Herman, 1997. "Environmental externalities and social optimality in biomass markets: waste-to-energy in The Netherlands and biofuels in France," Energy Policy, Elsevier, vol. 25(6), pages 605-621, May.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Statistics

    Access and download statistics

    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:29:y:2004:i:12:p:2125-2144. See general information about how to correct material in RePEc.

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

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.