Like many developing countries in Southeast Asia, Vietnam has experienced a significant increase in its electricity needs as it has developed. Since coal is a major source of energy in the country, this has led to a rise in coal mining and coal-powered electricity generation. This, in turn, has led to an increase in pollution and environmental destruction. This study has shown that these environmental costs represent a significant share of the overall cost of electricity generation. To deal with this problem, the study proposes that the costs of dealing with pollution and other environmental problems associated with power generation be incorporated into the country's electricity pricing mechanism. It also analyses and recommends various technological and policy measures that could reduce the environmental impact of Vietnam's power industry.

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