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This paper compares the cost of electricity generation with a coal fired plant and a wind mill in Chile's Central Interconnected System. To the standard costs of coal generation (capital investment and fuel) we add local and global environmental externalities. The environmental cost of generating with coal is US$17/MWh, and the total cost is US$78/MWh. Wind generation is considerable more expensive, US$136/Mwh. [ABSTRACT FROM AUTHOR]