How to include the environment in business math? – Executive Summary

Created by Instituto Escolhas, the study shows how to include environmental costs in the business math of the electricity sector, providing the real dimension of plant profitability so that investments can be prioritized without burdening the present and future generations. To demonstrate how this is possible, the same economic-financial models adopted by the market were used, and the costs of the environmental impacts of hydroelectric plants in the Amazon — natural gas and fuel oil thermoelectric plants, and wind and photovoltaic solar plants — were included in their cash flows. The new financial profitability of these projects was then calculated.