This report summarises some of the results achieved in a project carried out in Denmark in 1994 concerning externalities. The main objective was to identify, quantify and - if possible - monetise the external effects in the production of energy, especially in relation to renewable energy technologies. The report compares environmental externalities in the production of energy using renewable and non-renewable energy sources, respectively. The comparison is demonstrated on two specific case studies. The first case is the production of electricity based on wind power plants compared to the production of electricity based on a coal fired conventional plant. In the second case heat/power generation by means of a combined heat and power plant based on biomass-generated gas is compared to that of a combined heat and power plant fuelled by natural gas.In the report the individual externalities from the different ways of producing energy are identified, the stress caused by the effect is assessed, and finally the monetary value of the damage is estimated. The method is applied to the local as well as the regional and global externalities.