Internalization of external cost for the production and distribution of electricity in Flanders, Belgium

This report elaborates the external costs of electricity production and distribution in Flanders, Belgium, and tests them against prices and taxes for electricity use. The authors examined whether these external costs decrease in time and whether such a decrease leads to internalization in the price for the users through taxes, levies or other economic instruments. The external costs mainly include external environmental costs caused by air pollution and greenhouse gases, but also damage caused by accidents, hindrance and radioactive substances that may be released.