Leveling the Field for Renewables : Mexico's New Policy Framework for Incorporating External Costs of Electricity Generation

Mexico has started a number of efforts to develop adequate policy frameworks in several areas including the energy sector, transportation and industrial policies, and forestry and natural resources management. Its Climate Change Law and the Nation...

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Bibliographic Details
Main Author:	World Bank
Language:	English English
Published:	Washington, DC 2014
Subjects:	ABATEMENT ACID ACID RAIN ACIDIFICATION AGRICULTURAL CROPS AIR AIR POLLUTION ALLOWANCE TRADING AMBIENT AIR AMMONIA ANNUAL EMISSIONS APPROACH ATMOSPHERE AVAILABILITY BALANCE BENEFIT COST ANALYSIS BIOMASS BIRD SPECIES BLACK CARBON CALCULATION CARBON CAPTURE CARBON CREDITS CARBON DIOXIDE CARBON MARKET CARBON MONOXIDE CARBON PRICE CARBON PRICES CARBON TAXES CLEAN COAL CLEAN DEVELOPMENT MECHANISM CLEAN ENERGY CLEAN TECHNOLOGIES CLIMATE CLIMATE CHANGE CLIMATOLOGY CLOUD COVER CO CO2 COAL COAL CONSUMPTION COAL GENERATION COAL RESERVES COMBUSTION COMPENSATING WAGE DIFFERENTIALS CONTINGENT VALUATION COOLING SYSTEMS COST BENEFIT ANALYSIS COST OF ELECTRICITY COST-BENEFIT ANALYSES COSTS OF ELECTRICITY COSTS OF EMISSIONS COSTS OF EXTERNALITIES CRUDE OIL CYCLE TECHNOLOGIES CYCLE TECHNOLOGY DEBT DEMAND FOR ELECTRICITY DEVELOPED COUNTRIES DIESEL DISCOUNT RATES DISPERSION ANALYSIS DISPERSION MODELING DISPERSION MODELS DISTRIBUTION NETWORK DIVERGENCE ECOLOGY ECONOMIC ACTIVITY ECONOMIC ANALYSIS ECONOMIC COSTS ECONOMIC DEVELOPMENT ECONOMIC INSTRUMENTS ECONOMICS ECONOMISTS ECOSYSTEM ELECTRIC POWER ELECTRIC SYSTEM ELECTRIC UTILITY ELECTRICITY ELECTRICITY CAPACITY ELECTRICITY DEMAND ELECTRICITY GENERATION ELECTRICITY PRICES ELECTRICITY PRODUCTION ELECTRICITY SYSTEM ELECTRICITY TARIFFS ELECTRIFICATION EMISSION EMISSION REDUCTIONS EMISSIONS EMISSIONS DATA EMISSIONS FACTORS EMISSIONS INVENTORIES EMISSIONS LIMITS EMISSIONS REDUCTIONS EMISSIONS STANDARDS EMISSIONS TARGETS EMISSIONS TAXES ENERGY CONSERVATION ENERGY EFFICIENCY ENERGY PLANNING ENERGY POLICIES ENERGY PRODUCTION ENERGY REQUIREMENTS ENERGY SOURCES ENERGY STRATEGY ENERGY USE ENVIRONMENTAL ENVIRONMENTAL COSTS ENVIRONMENTAL PERFORMANCE ENVIRONMENTAL POLICY ENVIRONMENTAL PROTECTION EXTERNAL COSTS FISHERIES FORESTRY FOSSIL FOSSIL ENERGY FOSSIL FUEL FOSSIL FUEL POWER FOSSIL FUEL POWER PLANTS FOSSIL FUELS FRAMEWORK CONVENTION ON CLIMATE CHANGE FUEL OIL FUEL PRICES GAS TURBINES GASOLINE GEOTHERMAL CAPACITY GEOTHERMAL ENERGY GEOTHERMAL POWER GEOTHERMAL POWER PLANT GEOTHERMAL PROJECT GHG GLOBAL EMISSIONS GLOBAL PRECIPITATION GREENHOUSE GREENHOUSE EFFECT GREENHOUSE GAS HEAVY FUEL OIL HYDRO PLANT HYDRO POWER HYDROCARBONS HYDROELECTRIC PLANTS HYDROPOWER HYDROXYL HYDROXYL RADICALS INTERNAL COMBUSTION INTERNATIONAL CARBON MARKETS IPCC KILOWATT HOUR KILOWATT-HOUR LAND USE LIQUEFIED NATURAL GAS LNG LOW-CARBON MARKET PRICES METEOROLOGICAL DATA METEOROLOGY NATURAL GAS NATURAL GAS USE NATURAL RESOURCES NEGATIVE IMPACT NEGATIVE IMPACTS NH3 NITRATES NITROGEN NITROGEN OXIDES NOX NUCLEAR ENERGY O3 OZONE PARTICULATE PARTICULATE MATTER PARTICULATES PEAK DEMAND PIPELINE PM10 POLICY DECISIONS POLICY INSTRUMENTS POLICY MAKERS POLLUTANTS POLLUTION CONCENTRATION POWER POWER CAPACITY POWER GENERATION POWER PLANTS POWER PRODUCER POWER PRODUCERS POWER SECTOR POWER SYSTEM POWER SYSTEMS PRECIPITATION PRESENT VALUE PRIMARY ENERGY PRIMARY ENERGY PRODUCTION PRIMARY ENERGY SUPPLY PRODUCTION COSTS PROMOTING ENERGY EFFICIENCY PURCHASING POWER RENEWABLE ENERGY RENEWABLE ENERGY PROJECTS RENEWABLE PORTFOLIO STANDARD RENEWABLE PORTFOLIO STANDARDS RENEWABLE SOURCES SO2 SOCIAL COST OF CARBON SOCIAL COSTS SOLAR RADIATION STEAM TURBINE SULFATE SULFATES SULFUR SULFUR CONTENT SULFUR DIOXIDE SUSTAINABLE DEVELOPMENT TAX POLICIES TECHNOLOGICAL CHANGE TEMPERATURE TONS OF CARBON TONS OF NITROGEN OXIDES TONS OF SULFUR DIOXIDE TOTAL EMISSIONS TRANSMISSION INTERCONNECTION UNIT OPERATIONS UTILITIES VARIABLE COSTS VOC VOLATILE ORGANIC COMPOUNDS WAGES WILLINGNESS TO PAY WIND WIND DIRECTION WIND FARM WIND FARMS WIND PROJECT WTP
Online Access:	http://documents.worldbank.org/curated/en/2014/04/19760440/leveling-field-renewables-mexicos-new-policy-framework-incorporating-external-costs-electricity-generation http://hdl.handle.net/10986/20061

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Summary:	Mexico has started a number of efforts to develop adequate policy frameworks in several areas including the energy sector, transportation and industrial policies, and forestry and natural resources management. Its Climate Change Law and the National Strategy on Climate Change envision is changing the upward trend of its carbon dioxide emissions towards a total decline of emission of thirty percent by 2020, and fifty percent by 2050. Achieving these ambitious policy goals is challenging for the country and will require many distinct efforts to mainstream climate change in policy design. Careful economic analysis will be critical to effectively reduce emissions while allowing for sustainable development. The policy evaluated in the study is part of Mexico's policy framework to promote renewable energy. The Ministry of Energy in Mexico, SENER, has issued a Methodology to incorporate external costs of electricity generation. While external costs are not privative of fossil energy, the Mexican government has started this process by focusing on the external costs on health and climate change, two of the main impacts of energy use. The study analyzes the potential of this new policy to help Mexico in its energy and environmental goals. It is organized into five chapters: (i) Introduction; (ii) Mexico s Policy Context for Incorporating Externalities; (iii) Valuation of Externalities; (iv) Internalizing Externalities; and (v) Conclusion. Included are four annexes: Method to Value Externalities for Mexico's Electricity Generation; Investment Plan in the Power Sector in Mexico; Modeling Framework and Methodology; and Project Valuation with Environmental Externalities.

Leveling the Field for Renewables : Mexico's New Policy Framework for Incorporating External Costs of Electricity Generation

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