ABSTRACT
Although solar energy has been considered desirable because it imposes a much smaller environmental burden than conventional sources of energy, this argument has almost always remained qualitative and there has been no consensus on the premium, if any, that society should pay for cleaner energy. However, in recent years there has been much progress in the analysis of environmental damage costs, thanks to several major projects to evaluate the externalities of energy in the USA (ORNLIRFF 1994, Rowe et al. 1995) and in Europe (Extern E, 1995, ExternE, 1998, Rabl et al., 1996). Of these, the ExternE (External Costs of Energy) Project of the European Commission has the widest scope and it is being continually updated to incorporate the latest scientific findings. This chapter reviews the methodology and the results.
