The Indispensability of Externality Valuation in Least-Cost Planning
Utility regulators have been expanding the range of costs included in evaluating utility decisions such as the selection of new supply sources or the analysis of conservation programs. In addition to known direct costs to the utilities, regulators are including various allowances for risks and for environmental and economic externalities. Considerable controversy has arisen regarding the inclusion of environmental externalities and the specific methods used in setting externality values.
KeywordsTradable Permit Resource Allocation Decision Supply Option Tradable Allowance Utility Planning
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