The Social Cost of Electricity

The Social Cost of Electricity

Scenarios and Policy Implications

The Fondazione Eni Enrico Mattei series on Economics, the Environment and Sustainable Development

Edited by Anil Markandya, Andrea Bigano and Roberto Porchia

This book reports and rationalizes the state-of-the-art concerning the social costs of electricity generation. Social costs are assessed by adding to the private generation costs, the external costs associated with damages to human health, the environment, crops, materials, and those related to the consequences of climate change. The authors consider the evolution of these costs up to 2030 for major electricity generating technologies and, using these estimates, evaluate policy options for external cost internalization, providing quantitative scenarios by country and primary fuel for 2010, 2020 and 2030. While mainly focusing on European countries, the book also examines the situation in key emerging economies such as China, India, Brazil and Turkey.


Roberto Porchia

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


Roberto Porchia This volume combines the methodology and results on private and full costs estimation with the assessment and the evaluation of different instruments of energy policy, and the projection of electricity scenarios. The book provides the results of the research performed by the CASES project, which is a Coordination Action on ‘Cost Assessment of Sustainable Energy Systems’ funded by the European Commission under the Sixth Framework Programme, Sustainable Energy Systems. DESCRIPTION AND OBJECTIVES OF THE CASES PROJECT The CASES Coordination Action (CA for short) carried out its activities from April 2006 to September 2008. In this period it evaluated policy options for improving the efficiency of energy use, underpinning this evaluation with a consistent and comprehensive picture of the social cost of energy, and made this crucial knowledge available to all stakeholders. In particular CASES compiled a complete and coherent assessment of the social cost (external plus private cost) of different electricity generation technologies, in EU countries and in selected non-EU countries, under welldefined energy scenarios to 2030. The cost database provides a unique quantitative support to the assessment of alternative policy options in the perspective of improving the efficiency of energy use. CASES, in providing a set of recommendations on the use of different policy instruments for the internalisation of the external costs of energy production, contributes directly to policy and provides an information base on the effectiveness and on the consequences of the use of different instruments. In addition, the assessment of the full costs estimates of...