Electricity Pricing for North Vietnam

Song Nguyen Van () and Hanh Nguyen Van
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Song Nguyen Van: Vietnam National University of Agriculture
Hanh Nguyen Van: Vietnam National University of Agriculture

No rr2016058, EEPSEA Research Report from Economy and Environment Program for Southeast Asia (EEPSEA)

Abstract: This study estimated the environmental costs associated with the electricity demand requirements of the coal electricity sector, as a component of the long-run marginal opportunity cost (LR-MOC) of electricity production. The LR-MOC has three components: Marginal Production Cost or direct cost (MPC), Marginal User Cost (MUC) and the Marginal Environmental Cost (MEC). The MEC is divided further into two components: Marginal Environmental Cost of coal mining (MEC1) and Marginal Environmental Cost of coal burning (MEC2). The MEC1 consists of on-site environmental cost and off-site environmental cost while the MEC2 is made up of control cost and off-site environmental cost. The total production cost per tonne of clean coal was 241,050 VND in 1998 and was estimated to be 343,679.70 VND in 2010. The marginal environmental cost of coal mining (MEC1) is 19,029.4 VND/per tonne in 2010 or 5.5% of production cost. Of the MEC1, on-site and off-site cost is about 3.6% and 1.93% of production cost, respectively.

Keywords: Electricity Pricing; Vietnam (search for similar items in EconPapers)
Date: 2016-04, Revised 2016-04
New Economics Papers: this item is included in nep-ene, nep-pke and nep-sea
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