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Evaluation of economic rent of hydropower projects

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  • Shrestha, Ram M.
  • Abeygunawardana, A.M.A.K.

Abstract

Existing studies have mostly estimated the ex post economic rent of hydropower for the hydroelectric system of a province or a country as a whole and have ignored the site- or project-specific variations in the economic rent of hydropower plants. Further, most of the existing studies have used simplified methods to calculate the rent ex post. This paper presents a rigorous methodology for estimation of site-specific (i.e., project specific) economic rent of hydropower ex ante. It applies the methodology in the case of a hydropower project and analyzes the sensitivity of the rent to variations in some key parameters.

Suggested Citation

  • Shrestha, Ram M. & Abeygunawardana, A.M.A.K., 2009. "Evaluation of economic rent of hydropower projects," Energy Policy, Elsevier, vol. 37(5), pages 1886-1897, May.
  • Handle: RePEc:eee:enepol:v:37:y:2009:i:5:p:1886-1897
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    References listed on IDEAS

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    1. David W. Gillen & Jean-François Wen, 2000. "Taxing Hydroelectricity in Ontario," Canadian Public Policy, University of Toronto Press, vol. 26(1), pages 35-49, March.
    2. Banfi, Silvia & Filippini, Massimo & Mueller, Adrian, 2005. "An estimation of the Swiss hydropower rent," Energy Policy, Elsevier, vol. 33(7), pages 927-937, May.
    3. Rothman, M., 2000. "Measuring and Apportioning Rents from Hydroelectric Power Development," World Bank - Discussion Papers 419, World Bank.
    4. Mitchell Rothman, 2000. "Measuring and Apportioning Rents from Hydroelectric Power Developments," World Bank Publications - Books, The World Bank Group, number 15187.
    5. Amundsen, Eirik S. & Tjotta, Sigve, 1993. "Hydroelectric rent and precipitation variability : The case of Norway," Energy Economics, Elsevier, vol. 15(2), pages 81-91, April.
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    Cited by:

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