Table of Contents

Environmental Valuation in Developed Countries

Environmental Valuation in Developed Countries

Case Studies

Edited by David Pearce

This is the second of two volumes of case studies that illustrate how environmental economists place values on environmental assets and on the flows of goods and services generated by those assets. This important book assembles studies that discuss broad areas of application of economic valuation – from amenity and pollution through to water and health risks, from forestry to green urban space. In this, his last book, the late David Pearce brought together leading European experts, contributors to some two dozen case studies exploring the frontiers of economic valuation of natural resources and environmental amenity in the developed world.

Chapter 9: Quantifying the Environmental Impacts of Renewable Energy: The Case of Swedish Wind Power

Kristina Ek

Subjects: economics and finance, environmental economics, valuation, environment, environmental economics, valuation


Kristina Ek INTRODUCTION An important element of energy policies in Sweden and the European Union is to promote the commercialization of renewable energy sources in the power sector. The recent wave of liberalization and deregulations of electricity markets may in itself benefit renewable energy as it allows for product differentiation; customers can choose among producers of electricity with different generation portfolios. If consumers are willing to pay a premium for electricity generated from renewable sources, such as wind power, the amount of renewable electricity capacity can be expected to increase. Swedish consumers have had the opportunity to buy ‘green’ electricity since 1996, at the time when the electricity market was deregulated and the Swedish Society for Nature Conservation initiated a system for the labelling of ‘green’ electricity. The energy sources considered ‘green’ according to this scheme are existing hydropower, solar power, biomass power and wind power. All the major electricity distributors in Sweden offer ‘green’ electricity to their consumers, and some of them also offer electricity generated exclusively from wind.1 So far, wind power represents a small share of total electricity production in Sweden. In 2000 0.4 TWh wind power was generated, corresponding to about 0.3 per cent of total power generation in the country (Swedish National Energy Administration, 2001a). However, the political intention is to increase wind power production to 10 TWh by 2015 (Prop. 2001/02:143). Sundqvist (2002) summarizes and compares the results of more than 40 different electricity externality studies, and his results indicate that wind...

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