Externalities associated with electricity generation and use.

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Based on the Gies and WNA articles on Energy and Electricity, please answer the following:

1. Briefly summarize some of the main externalities associated with electricity generation and use. Are the externalities real, pecuniary, both?
2. Compare the costs and benefits of (a) business regulations vs. (b) taxes vs. (c) subsidizing alternative energy sources as a solution to externalities from electricity.
3. When considering policies aimed at correcting the externalities, is the goal of these policies to eliminate pollution? Explain

Sample Solution

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