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Integrated Resource Planning with Environmental Costs in Developing Countries

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  • Chitru S. Fernando
  • Paul R. Kleindorfer
  • Mohan Munasinghe

Abstract

This paper presents an integrated approach to dealing with the twin problems of environmental degradation and capital costs associated with the rapid expansion of electric power in developing countries. The integrated resource planning framework developed here calls for a careful balancing of supply and demand side options. Interruptible technologies are an important option in those developing countries where capital is scarcer and shortage costs are higher. When environmental costs of conventional generating technologies are included, the balance shifts even further in favor of demand side measures. This integrated perspective at the planning phase must be complemented by pricing policies that accurately reflect the cost of providing electric power, and organization structures that provide strong incentives for efficient operation.

Suggested Citation

  • Chitru S. Fernando & Paul R. Kleindorfer & Mohan Munasinghe, 1994. "Integrated Resource Planning with Environmental Costs in Developing Countries," The Energy Journal, , vol. 15(3), pages 93-121, July.
    • Handle: RePEc:sae:enejou:v:15:y:1994:i:3:p:93-121
    DOI: 10.5547/ISSN0195-6574-EJ-Vol15-No3-6
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    References listed on IDEAS

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    1. Hung-po Chao, 1983. "Peak Load Pricing and Capacity Planning with Demand and Supply Uncertainty," Bell Journal of Economics, The RAND Corporation, vol. 14(1), pages 179-190, Spring.
    2. Mohan Munasinghe & Mark Gellerson, 1979. "Economic Criteria for Optimizing Power System Reliability Levels," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 353-365, Spring.
    3. Michael L. Telson, 1975. "The Economies of Alternative Levels of Reliability for Electric Power Generation Systems," Bell Journal of Economics, The RAND Corporation, vol. 6(2), pages 679-694, Autumn.
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