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Economics - Environmental / Development / Agricultural Economics | Evaluating Water Projects - Cost-Benefit Analysis Versus Win-Win Approach

Evaluating Water Projects

Cost-Benefit Analysis Versus Win-Win Approach

Johansson, Per-Olov, Kriström, Bengt

2013, VIII, 67 p. 11 illus., 2 illus. in color.

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  • Compares two approaches to handling natural resource conflicts
  • A brand-new approach to empirical assessment of re-regulations
  • Case of a hydropower plant in Sweden

Should more water be diverted to or from electricity generation? This timely question is addressed in this short volume. Two different approaches are introduced and compared:
The first is a cost-benefit analysis, examining the case of re-regulating a Swedish hydropower plant in which water is diverted from electricity generation to the downstream dryway. The proposed scenario generates environmental and other benefits, but comes at a cost in terms of lost electricity.
The second study introduces an approach very different from the one used in conventional cost-benefit analysis, and provides a set of measures designed so that most, if not all, affected parties will be better off. Thus, in contrast to a conventional cost-benefit analysis, which draws on hypothetical compensation measures, the new approach envisages actual compensation.
Comparing two different theoretical frameworks on the basis of a real-world case, this study can be seen as a manual that can be used to evaluate reasonably small re-regulation of rivers.

Content Level » Research

Keywords » Electricity Generation - General Equilibrium Theory - Water Use Conflict

Related subjects » Environmental / Development / Agricultural Economics - Pollution and Remediation

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