The True Cost of Electric Power - Summary for Policymakers

Burtraw, Dallas
Krupnick, Alan

2012

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Estimating the true costs of electricity generation is both complex and controversial. It is complex because it must take into account several factors, including the population density near a power plant, the fuel it uses, and its pollution abatement technology. It is controversial because it requires assumptions and decisions to be made that the public does not like or does not understand. These include monetizing some types of risks (for example, to health) and ignoring others, such as occupational risks from coal mining when they are already “internalized” by the coal company in the wages it pays. Finally, these approaches are certain to be controversial because they can affect billions of dollars in investments in electricity generation. This report, The True Cost of Electric Power, examines the various methods that have been used to measure such “true” costs and looks at how such estimates can be used in company decision making and public policy to ensure that investments are directed at the electricity generation methods with the lowest true costs to investors and society.

Costos; Generación de energía eléctrica; Impactos socioeconómicos; Nivel mundial; Política energética;