Author(s)

Wenchang Han^1*, Dunnan Liu², Yuhong Fan¹, Yu Hu², Yujie Xu², Xinming Liu²

¹Electric Power Research Institute of Economics and Technology, Hubei Electric Power Company, Wuhan, China.
²School of Economics and Management, North China Electric Power University, Beijing, China.

Power industry as an important means of primary energy consumption, occupies an important position in coal consumption and pollutant emissions, and causes a great impact on the environment. It is particularly important to define environmental costs while Environmental costs account for a heavy weight in the total cost of generating after the introduction of the Clean Development Mechanism (CDM) This paper analyzes the composition of environmental cost and its calculation methods, three cost equivalent pricing methods and its scope in environmental costs were proposed, there are Government pricing, market pricing and cost accounting, then analyses the cost of equivalent effect on electricity trade.

Environmental Costs; Cost Equivalent; Pricing

Han, W. , Liu, D. , Fan, Y. , Hu, Y. , Xu, Y. and Liu, X. (2014) Methods Research to Calculate Equivalent of Environmental Cost in Power Industry. Journal of Power and Energy Engineering, 2, 86-93. doi: 10.4236/jpee.2014.24014.