Nunavut (NU) | Ontario (ON) | Prince Edward Island (PEI) | Quebec (QC) | Saskatchewan (SK) | Yukon (YK) |
The existence of external benefit and external cost leads to misallocation of resources. External cost For example, when drivers are not liable for the health damage of car exhaust, drivers will equate only marginal private cost with marginal benefit. But if drivers are forced to pay for the health damage of car exhaust, their marginal cost will go up by the amount of the external cost.
Calculations of these costs at the point of connection to a load or to the electricity grid can be made. The cost is typically given per kilowatt-hour or megawatt-hour. It includes the initial capital, discount rate, as well as the costs of continuous operation, fuel, and maintenance.ypically pricing of electricity from various energy sources may not include all external costs-that is, the costs indirectly borne by society as a whole as a consequence of using that energy source.