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Integrated Resource Planning with Environmental Costs in Developing Countries

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.

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Energy Specializations: Energy and the Environment – Policy and Regulation; Energy Access – Energy Poverty and Equity

JEL Codes: Q41: Energy: Demand and Supply; Prices, Q40: Energy: General, Q54: Climate; Natural Disasters and Their Management; Global Warming, Q53: Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling, Q21: Renewable Resources and Conservation: Demand and Supply; Prices

Keywords: Integrated resource planning, Developing countries, Electricity generation

DOI: 10.5547/ISSN0195-6574-EJ-Vol15-No3-6

Published in Volume15, Number 3 of the bi-monthly journal of the IAEE's Energy Economics Education Foundation.


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