Environmental Valuation & Cost-Benefit News
Internalizing externalities into capacity expansion planning: The case of electricity in Vietnam
03/17/08
11:55:06 am, by damageva 
, 202 words, 199 views 
Categories: General, Air, Energy, Climate Change GHG Carbon CO2, Asia, Academic Study/Journal Article, Economic Development, Regulatory Analysis, Computer Software/Database, Costs and Benefits
Internalizing externalities into capacity expansion planning: The case of electricity in Vietnam
Abstract: This paper examines the impacts of including external costs such as environmental and health damages from power production on power generation expansion planning in Vietnam. Using the MARKAL model and covering a 20-year period to 2025, the study shows that there are substantial changes in the generation structure in favor of renewable energy technologies and other low emitting technologies. These changes lead to a reduction in fossil fuel requirements, and consequently, a reduction of CO2, NOx, SO2, and PM emissions which could be expected to also reduce the associated environmental and human health impacts. The avoided external costs would be equivalent to 4.4 US cent/kWh. However, these gains are not free as the additional electricity production cost would be around 2.6 US cent/kWh higher if the switch to more expensive, but lower emitting technologies were made. The net benefit of internalizing these externalities is thus around 1.8 US cent/kWh.
Keywords: Electricity generation; Externalities; Vietnam
by Khanh Q. Nguyen; Department of Energy Economics, Institute of Energy, 6 Ton That Tung, Dong da, Hanoi, Vietnam and GreenTech Ltd., 31/43 Chua Boc, Dong da, Hanoi, Vietnam; Tel.: +84 4 852 3385; fax: +84 4 852 3311.
Energy via Elsevier Science Direct www.ScienceDirect.com
Volume 33, Issue 5; May, 2008; Pages 740-746
http://dx.doi.org/10.1016/j.energy.2008.01.014
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