Power industry as an important means of primary energy consumption, occupies an important position In coal consumption and pollutant emissions, and causes a great impact on the environment. It is particularly important to define environmental costs while Environmental costs account for a heavy weight in the total cost of generating after the introduction of the Clean Development Mechanism (CDM) This paper analyzes the composition of environmental cost and its calculation methods, three cost equivalent pricing methods and its scope in environmental costs was proposed, there are Government pricing, market pricing and cost accounting, then analysed the cost of equivalent effect on electricity trade.
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