The Social Cost of Electricity: Scenarios and Policy Implications

Abstract:     
This is a review of The Social Cost of Electricity: Scenarios and Policy Imperatives (Edward Elgar, 2010), which summarizes the results of a European Commission funded research project. The contributions in this volume stands out for their ambitious effort to model and quantify the external costs of electric power generation, as well as their initial assessment of various policy instruments designed to address climate change and promote renewable energy. While a broad range of social cost issues presented by electricity production are incorporated into the project’s modeling, it does not study or attempt to quantify conservation and demand response approaches. Much more complete data will likely be necessary to for policymakers to seriously the assess which instruments are most effective at advancing energy policy goals. Without doubt, however, the data and careful analysis presented in this volume will challenge future decisionmakers to look beyond the private or market cost of energy in their policy decisions.

Number of Pages in PDF File: 6

Keywords: Energy, climate change, externalities, costs, renewable energy

Accepted Paper Series