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A Method of Calculating the Social Cost of “Clean†Electricity

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  • Nissim Ben-Aderet
  • David Soloveitchik

Abstract

This article presents a methodology and estimation of the social benefit of using “clean†technologies of electricity generation. The methodology is based on the margin production cost of electricity and on the avoided pollution cost. The results obtained from our study enable us to estimate the payment to the “clean†electricity producers using the avoided cost methodology. The results show that the social cost for 1 kWh produced by “clean†technologies is higher by 5% than the cost of 1 kwh produced by the mix of the conventional technologies for electricity generation of the same demand level.

Suggested Citation

  • Nissim Ben-Aderet & David Soloveitchik, 1995. "A Method of Calculating the Social Cost of “Clean†Electricity," Energy & Environment, , vol. 6(2), pages 135-141, June.
    • Handle: RePEc:sae:engenv:v:6:y:1995:i:2:p:135-141
    DOI: 10.1177/0958305X9500600204
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