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Utility decisions regarding which technological option to select when creating additional electricity generating capacity are chiefly based on an evaluation of the comparative costs of the options available. However most of the time these costs do not fully reflect the broader impacts ("externalities") of this energy choice on the economy and society at large. To formulate their future energy and resource development policies governments therefore have to take them into account whether of an economic environmental health or social nature which may support or discourage the adoption of a particular technology.

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