A review on the internalization of externalities in electricity generation expansion planning

HIGHLIGHTS

SUMMARY

    This approach does not fully capture the external costs associated with the environmental and social impacts caused by the construction and operation of new-generation plants and the necessary interconnection links. Environmental and social costs are then classified as external in the sense that they are not captured by market mechanisms; as such, their negative or positive effects are not internalized by the economic agents that cause them, and may not be included in the 2 of 19 traditional cost optimization. Perspective, the fact that an expansion strategy is cost optimal does not mean . . .

     

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