External Costs on the Environment and Exergo-Economics Methods

Abstract

The exergy approach is used in observation of energy transformation processes, it allows estimation of these processes effect on the environment and contributes to the efficiency increasing and evaluation of the environmental externalities. The externalities represent costs or benefits that affect the third party not participating in the particular process. Negative externalities called "external costs" are dangerous for the environment and very difficult to determine. Exergy methods can clarify the economic implications as well as the negative externalities.