Evaluating Water Projects: Cost-Benefit Analysis Versus by Per-Olov Johansson, Bengt Kriström

By Per-Olov Johansson, Bengt Kriström

Should extra water be diverted to or from electrical energy new release? This well timed query is addressed during this brief quantity. diverse methods are brought and in comparison:
The first is a cost-benefit research, reading the case of re-regulating a Swedish hydropower plant within which water is diverted from electrical energy new release to the downstream dryway. The proposed state of affairs generates environmental and different merits, yet comes at a value when it comes to misplaced electrical energy.
The moment examine introduces an technique very diverse from the single utilized in traditional cost-benefit research, and gives a collection of measures designed in order that such a lot, if now not all, affected events might be . therefore, unlike a traditional cost-benefit research, which attracts on hypothetical repayment measures, the recent strategy envisages real repayment.
Comparing diverse theoretical frameworks at the foundation of a real-world case, this research could be noticeable as a handbook that may be used to guage kind of small re-regulation of rivers.

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It may be noted that tunnel-based power plants are not entirely uncommon in Sweden and Norway. The proposal means that power production does not decrease, biodiversity increases, fish migration (salmon) is made possible, implying that natural reproduction is stimulated. Furthermore, the conditions for sport fishing and other social activities are improved. The impact on biodiversity and other characteristics of the ecological system has been investigated by Associate Professor Kjell Leonardsson at SLU, see [3].

1007/978-3-642-36790-8_3, © The Author(s) 2013 35 3 The −2,+1 Hydropower Scenario 36 2. Those involved in construction work or dam removals. 3. Those living in the drainage basin a. Individuals affected themselves by the environmental and other impacts of the proposal. b. Altruists living in the drainage basin that derive non-use values either because they care about others living today and/or are concerned about future generations. c. People deriving both use values and non-use values from the proposal.

6 Social Discount Rate There is a huge literature on how to define and estimate a social discount rate. There is certainly no universal consensus with respect to what a social discount rate reflects, its magnitude or even sign. A good overview of different approaches is found in [22]. We will not attempt to summarize the different approaches and views here. php. This webbased tool can be used to replicate the externality costs presented here. 24 2 The Dönje Hydropower Scenario risk), Germany’s rate is 3 % while France uses a rate of 4 %; see [23].

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