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Introduction

In: Evaluating Water Projects

Author

Listed:
  • Per-Olov Johansson

    (Stockholm School of Economics)

  • Bengt Kriström

    (SLU)

Abstract

In this introductory chapter we provide an overview of the problems addressed in the book. Altered flows in regulated rivers generally have strong negative impacts on most aquatic organisms and on those in the riparian zone, as well as detrimental effects on recreational possibilities and aesthetic values associated with rivers. On the other hand, hydropower offers energy free from emissions to air. In addition, hydropower is extremely cost-effective in countries with suitable natural conditions, like Norway and Sweden. Taken together, these facts suggests a conflict between competing uses of river resources in general and between policy objectives in particular. Cost-benefit analysis (CBA) offers a formal approach to delineating the costs and benefits of a changed (water) policy and results in information that may provide useful information about policies. One of the two studies discussed in this Brief is a cost-benefit analysis of a re-regulation of a Swedish hydropower plant. Water is diverted from electricity generation to uses that provide environmental benefits but these benefits come at a cost in terms of electricity foregone. The second study aims at designing a package of measures so that virtually everybody becomes a winner. This Win-Win approach is very different from a cost-benefit analysis. The two approaches are explained in this introductory chapter.

Suggested Citation

  • Per-Olov Johansson & Bengt Kriström, 2013. "Introduction," SpringerBriefs in Economics, in: Evaluating Water Projects, edition 127, chapter 0, pages 1-10, Springer.
    • Handle: RePEc:spr:spbchp:978-3-642-36790-8_1
    DOI: 10.1007/978-3-642-36790-8_1
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