Externality Identification and Quantification of Transmission Construction Projects

This paper provides the evaluation method and model of the externality of the transmission projects, and identifies both negative and positive externalities, as well as makes quantitative and qualitative analysis of externality. In order to quantify the impact of transmission construction projects on the power flow distribution, power supply and demand, as well as the power price of the neighboring power grid, this paper operates the optimal power flow calculation on the Matlab platform through using the IEEE 30-Node Prototype System, and figures out the construction project´s influence on the economic benefits of different power market participants. Based on the existing environmental evaluation study, this paper analyzes how the transmission construction project affects the natural resource and the environment and the daily life of the inhabitants. Taking into account the externality and quantifying the externality when evaluating the investment project can help the government and the investors to make the investment decision which is beneficial to the whole society.