Teaching Case - A Question of Values: The Case of Environmental Externalities in the Generation of Electrical Power

A Question of Values: The Case of Environmental Externalities in the Generation of Electrical Power

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  • Product Description

    Abstract:
    This microeconomics case uses the deliberations of the Massachusetts Department of Public Utilities as a vehicle for raising the issue of how to quantify the value of an environmental externality--in this instance, power plant construction--and how to use that information in shaping regulatory policy. The case highlights two competing theories of pollution measurements. "Implied valuation" would measure the marginal cost of actually installing pollution control equipment; "damage valuation" would measure the demonstrated cost of actual damage to the environment. State DPU commissioners must decide which standard to adopt.

    Learning Objective:
    This case is a vehicle for raising the issue of how to quantify the value of an environmental externality--in this instance, power plant construction--and how to use that information in shaping regulatory policy.

  • Other Details

    Publication Date: January 01, 1994
    HKS Case Number: 1244.0
    Case Author: Esther Scott
    Faculty Lead: Adam Jaffee
    Pages (incl. exhibits): 29
    Setting: United States
    Language: English
    _year: Older than 2000
    _pages: 25+
    _geography: US & Canada
  • Warranty Information

    /review/1244.0.EducatorCopy.pdf

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