SUFFiciENcy EcONOMy ANd GRASSROOtS DEvElOPMENt

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262 The Meaning of Sufficiency Economy International Conference Figure IV: Solar Insolation Diagram of India (DOT 2008) In the context of energy markets, an “externality adder” is simply the unit externality cost Figure added IV: to Solar the standard Insolation resource Diagram cost of India of energy (DOT 2008) to reflect the social cost of its use. For power generation, the externality adder would generally be specified in terms of Rs. per kWh (Rs./kWh) (Pearce 2002) In the context of energy markets, an “externality adder” is simply the unit externality cost added to the standard resource Peace cost (2002) of energy lists five to reflect uses the for social externality cost of adders: its use. For power generation, the externality adder would generally be specified in terms of Rs. per kWh (Rs./kWh) (Pearce 2002) i. For public or quasi-public ownership of sources of electric power Peace (2002) lists generation, five uses for the externality full social adders: cost of alternative technologies could be used to plan future capacity with preference being given to that with the lowest i. For social public cost. or Where quasi-public electric ownership power of generation sources of is electric privately power owned, generation, then the full social regulators cost of could alternative use the technologies full social could cost to be influence used to plan new future investment, capacity with preference perhaps through being an given effective to that environmental with the lowest tax.social cost. Where electric power
The Meaning of Sufficiency Economy International Conference 263 ii. Environmental generation is privately adders owned, can be then used regulators estimate could use the the appropriate full social cost level to influence of environmental new investment, taxes. perhaps Although through an estimates effective environmental of environmental tax. adders have been derived for a number of applications, examples of their actual ii. Environmental adders can be used to estimate the appropriate level of environmental implementation taxes. Although are estimates few. of environmental adders have been derived for a number of applications, examples of their actual implementation are few. iii. Environmental adders could be used to adjust national accounts data to reflect depreciation of natural resources and damage to the environment iii. arising Environmental from economic adders could activity, be used yielding to adjust so-called national accounts “green” data national to reflect accounts. depreciation of natural resources and damage to the environment arising from economic activity, yielding so-called “green” national accounts. iv. Environmental adders could be used for “awareness raising”; i.e., to inform the public of the degree to which alternative energy sources have iv. Environmental adders could be used for “awareness raising”; i.e., to inform the public of externalities the degree to that which give alternative rise to energy economically sources have inefficient externalities allocation that give rise of to resources. economically inefficient allocation of resources. v. Environmental adders might assist in determining environmental policy v. priorities. Environmental adders might assist in determining environmental policy priorities. The weighted average sale price of traded electricity in India is given below to The understand weighted average the rising sale tariffs price of scenario. traded electricity in India is given below to understand the rising tariffs scenario. Figure V: Weighted average sale price of traded electricity (ABPS, 2009) Figure V: Weighted average sale price of traded electricity (ABPS, 2009) Our payback simulation analyses have utilized the current tariffs to calculate revenues. In the figures below, we present the results of the same.
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SUFFiciENcy EcONOMy ANd GRASSROOtS DEvElOPMENt

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