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Assessing the Short-Run Economic Cost of Environmental Constraints on Hydropower Operations at Glen Canyon Dam

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  • David A. Harpman

Abstract

Environmental externalities resulting from the construction and operation of a number of hydropower plants are now being reexamined. The focus of many recent analyses is on identifying new, often more restrictive, operational regimes which will improve downstream environmental conditions. These new regimes may create significant market and nonmarket benefits but constraints on hydropower operations frequently lead to economic costs. This paper introduces an hourly constrained optimization framework for estimating the short-run costs of restricting hydropower operations. Glen Canyon Dam, on the Colorado River in Arizona, is used as a case study. Newly available marketbased prices are employed.

Suggested Citation

  • David A. Harpman, 1999. "Assessing the Short-Run Economic Cost of Environmental Constraints on Hydropower Operations at Glen Canyon Dam," Land Economics, University of Wisconsin Press, vol. 75(3), pages 390-401.
    • Handle: RePEc:uwp:landec:v:75:y:1999:i:3:p:390-401
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    Citations

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    Cited by:

    1. Pérez-Díaz, Juan I. & Wilhelmi, José R., 2010. "Assessment of the economic impact of environmental constraints on short-term hydropower plant operation," Energy Policy, Elsevier, vol. 38(12), pages 7960-7970, December.
    2. Ignacio Guisández & Juan I. Pérez-Díaz & José R. Wilhelmi, 2016. "The Influence of Environmental Constraints on the Water Value," Energies, MDPI, vol. 9(6), pages 1-21, June.
    3. Sheila M. Olmstead & Hilary Sigman, 2015. "Damming the Commons: An Empirical Analysis of International Cooperation and Conflict in Dam Location," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 2(4), pages 497-526.
    4. Pérez-Díaz, J.I. & Millán, R. & García, D. & Guisández, I. & Wilhelmi, J.R., 2012. "Contribution of re-regulation reservoirs considering pumping capability to environmentally friendly hydropower operation," Energy, Elsevier, vol. 48(1), pages 144-152.
    5. Guisández, Ignacio & Pérez-Díaz, Juan I. & Wilhelmi, José R., 2013. "Assessment of the economic impact of environmental constraints on annual hydropower plant operation," Energy Policy, Elsevier, vol. 61(C), pages 1332-1343.
    6. Sichilalu, Sam & Wamalwa, Fhazhil & Akinlabi, Esther T., 2019. "Optimal control of wind-hydrokinetic pumpback hydropower plant constrained with ecological water flows," Renewable Energy, Elsevier, vol. 138(C), pages 54-69.
    7. Niu, Shilei & Insley, Margaret, 2013. "On the economics of ramping rate restrictions at hydro power plants: Balancing profitability and environmental costs," Energy Economics, Elsevier, vol. 39(C), pages 39-52.
    8. He, Xi, 2023. "Dams, cropland productivity, and economic development in China," China Economic Review, Elsevier, vol. 81(C).
    9. Rayamajhee, Veeshan & Joshi, Aakrit, 2018. "Economic trade-offs between hydroelectricity production and environmental externalities: A case for local externality mitigation fund," Renewable Energy, Elsevier, vol. 129(PA), pages 237-244.
    10. Kern, Jordan D. & Characklis, Gregory W., 2017. "Low natural gas prices and the financial cost of ramp rate restrictions at hydroelectric dams," Energy Economics, Elsevier, vol. 61(C), pages 340-350.
    11. Guisández, Ignacio & Pérez-Díaz, Juan I. & Wilhelmi, José R., 2016. "Approximate formulae for the assessment of the long-term economic impact of environmental constraints on hydropeaking," Energy, Elsevier, vol. 112(C), pages 629-641.
    12. Petras Punys & Antanas Dumbrauskas & Egidijus Kasiulis & Gitana Vyčienė & Linas Šilinis, 2015. "Flow Regime Changes: From Impounding a Temperate Lowland River to Small Hydropower Operations," Energies, MDPI, vol. 8(7), pages 1-24, July.
    13. Niu, Shilei & Insley, Margaret, 2016. "An options pricing approach to ramping rate restrictions at hydro power plants," Journal of Economic Dynamics and Control, Elsevier, vol. 63(C), pages 25-52.
    14. Bielsa, Jorge & Duarte, Rosa, 2003. "Modelling water resource allocation: a case study on agriculture versus hydropower production," MPRA Paper 36923, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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