Research of Environment Externalities Control of Power Plants in Electricity Market

As an environment externalities control means internalization of environment cost will benefit the optimization of electricity resources, improve and perfect the wheeling of electricity market and promote the healthy development of electricity industry. This article introduces the currently methods used to internalize the environment cost within Power Plants in China. This article also analyzes the reformation requirements about the internalization of environment cost. With these researches, the emission trading mechanism should be build up to control power plants environmental externalities by economic approach. Allocation of initial emission permits is the first and key problem in the practice of emission trading mechanism. Based on principles of economy optimization and fair, this article gives a decision model of initial emission permits allocation.