Externalities of energy production: the hot issue

The methodology of external cost calculations has been continuously developed. Still, due to lack of sufficient data and imperfect analytical tools, one can give only some estimates rather than precise results. The impact of primary pollutants is dominating in the local domain. The secondary pollutants are negligible in the local domain; however, they have a strong impact in the regional domain. The impacts of primary and secondary pollutants were estimated with the best URBAN algorithm and SUWM formulation, respectively. KEYWORDS: Environmental policy, environmental regulations, externalities, primal, and secondary, pollutants.