Getting the prices right is a prerequisite for energy market mechanisms to work effectively towards the development of sustainable energy mixes. External costs of energy have been recognised and assessed in many studies, and the life cycle analysis (LCA) approach provides a conceptual framework for a detailed and comprehensive, comparative evaluation of alternative technology options. Despite this, results from analytical work on externalities and LCA studies are seldom used in policy making.
The International Energy Agency (IEA) and the OECD Nuclear Energy Agency (NEA) organised a workshop on "Externalities and Energy Policy: The Life Cycle Analysis Approach" to bring together policy makers and experts from governmental agencies and the industry to discuss key issues regarding the role and limitations of external cost evaluations and LCA results. The presentations and discussions reported in these proceedings will be of interest to senior analysts, policy makers and other stakeholders concerned with the sustainable development of the energy sector.