Hydropower Reform Coalition - Economic

Economic Benefits of Watershed Restoration

Rupak Thapaliya — Wed, 17 Feb 2010 13:31:23 -0600

Source: Wildlands CPR

Volume:

Year: 2009

Abstract

The primary economic difficulty that watershed restoration faces is that there are relatively few markets for its products. In economic-speak, this is a market failure in the provision of watershed restoration. Because of this market failure, collective action, often in the form of government intervention, usually occurs in order to pay for restoration activities. Many government programs, and society at large, typically require the benefits of an activity to outweigh its costs. Thus it is important to quantify the economic benefits arising from watershed restoration. Measured by damage caused, willingness to pay, political referenda, averted expenditures, travel costs incurred, and changes in housing values, researchers consistently conclude that watershed restoration has significant economic benefits. Watershed restoration projects have other economic impacts as well, directly and indirectly employing many people, and potentially contributing to the long-term viability and growth of communities. However, restoration advocates face hurdles in justifying restoration on economic grounds due to the vague nature of nonmarket valuation, long timescales required for achieving a positive return on investment in certain restoration projects, and unknown incremental benefits of watershed restoration in increasing the natural amenity qualities of communities.

Author(s)

Josh Hurd

Contact

Notes

Attachment	Size
Hurd_Economic_Benefits_2009.pdf	462.83 KB

Hydropower and the Environmental Commodities Markets in the U.S

Rupak Thapaliya — Thu, 12 Nov 2009 11:16:28 -0600

Source: Waterpower XVI

Volume:

Year: 2009

Abstract

The United States is currently one of the many countries across the globe which continues to work towards implementing mechanisms focused on mitigating anthropogenic carbon emissions. In the U.S., markets and the market-like instruments which are employed within them, known most commonly as carbon offsets and renewable energy certificates (RECs), are the tools which encourage the development of renewable energy and reduce carbon emissions. These market-based incentives have the potential to significantly endorse or impede hydropower, dependent upon the potential interaction of science and politics.

The implications of the voluntary and compliance markets on alternative and renewable energy affect both the future development of power plants, as well as the management of existing facilities. Case studies demonstrating the financial impacts of these markets on hydropower projects are presented, which highlight the regulatory requirements in place for hydropower and other renewable power plants. The paper concludes with a discussion of what the future may hold for the environmental commodities markets and the role of the hydropower industry within them.

Author(s)

Kathleen King, Bruno Trouille, David Walters

Contact

Notes

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King_Hydropower_and_Commodities_Markets.pdf	314.04 KB

Environmental Constraints on Hydropower: An Ex Post Benefit-Cost Analysis of Dam Relicensing in Michigan

Rupak Thapaliya — Tue, 16 Jun 2009 09:55:43 -0500

Source: Land Economics

Volume: 82 (3)

Year: 2006

Abstract

We conduct a benefit-cost analysis of a relicensing agreement for two hydroelectric dams in Michigan. The agreement changed daily conditions from peaking to run-of-river flows. We consider three categories of costs and benefits: producer costs of adapting electricity production to the new time profile of hydroelectric output; benefits
of reductions in air pollution and greenhouse gas emissions; and benefits of improved recreational fishing. The best estimates suggest that the aggregate benefits are more than twice as large as the producer costs. The conceptual and empirical methods provide a template for investigating the effects of an environmental constraint on hydroelectric dams. (JEL Q43, Q57)

Author(s)

Matthew J. Kotchen, Michael R. Moore, Frank Lupi, and Edward S. Rutherford

Contact

Notes

Attachment	Size
LandEcon_reprint.pdf	367.52 KB

Environmental Constraints on Hydropower: An Ex Post Benefit-Cost Analysis of Dam Relicensing in Michigan

Rupak Thapaliya — Thu, 11 Jun 2009 11:48:48 -0500

Source: Land Economics

Volume: 82 (3)

Year: 2006

Abstract

We conduct a benefit-cost analysis of a relicensing agreement for two hydroelectric dams in Michigan. The agreement changed daily conditions from peaking to run-of-river flows. We consider three categories of costs and benefits: producer costs of adapting electricity production to the new time profile of hydroelectric output; benefits of reductions in air pollution and greenhouse gas emissions; and benefits of improved recreational fishing. The best estimates suggest that the aggregate benefits are more than twice as large as the producer costs. The conceptual and empirical methods provide a template for investigating the effects of an environmental constraint on hydroelectric dams.

Author(s)

Kotchen, Matthew J., Michael R. Moore, Frank Lupi, and Edward S. Rutherford

Contact

Notes

Attachment	Size
LandEcon_reprint.pdf	367.52 KB

Economic Analysis for Hydropower Project Relicensing: Guidance and Alternative Methods

Rupak Thapaliya — Wed, 14 Jan 2009 12:56:29 -0600

Source: USFWS

Volume:

Year: 1998

Abstract

This report is intended to help Fish and Wildlife Service (FWS) staff become more effective participants in the hydropower relicensing process through a better understanding of the economic analysis used to evaluate hydropower projects. Specifically, the report seeks to accomplish the following goals:

Explain the Federal Energy Regulatory Commission's (FERC's) current approach to the economic analysis of relicensing alternatives;
Review potential methodological refinements and why they are important; and
Introduce a variety of approaches for assessing non-power values, helping FWS staff recognize when more advanced analyses are applicable.

The purpose of this document is not to provide a step-by-step guide for the conduct of primary economic analysis, i.e., the reader is not expected to become an expert in the implementation of the analyses described here. Rather, the document seeks to attune non-experts to the role of economics in relicensing and the diversity of techniques available.

Author(s)

Black, Robert, Bruce McKenney, Robert Unsworth, Nicholas Flores

Contact

Notes

Available online at

http://www.fws.gov/policy/hydroindex.htm

The US Economic Impacts of Climate Change and the Costs of Inaction

Rupak Thapaliya — Thu, 11 Dec 2008 09:26:03 -0600

Source: Center for Integrative Environmental Research (CIER)

Volume:

Year: 2007

Abstract

This report presents a review of economic studies for the United States and relates them to predicted impacts of climate change. The summary findings are organized by region and identify the key sectors likely affected by climate change, the main impacts to be expected, as well as estimates of costs. The report builds on the 2000 Global Change Research Program National Assessment, using additional regional and local studies, as well as new calculations derived from federal, state and industry data sources. From this review and quantification, five key lessons emerge:

Economic impacts of climate change will occurthroughout the country
Economic impacts will be unevenly distributedacross regions and within the economy andsociety.
Negative climate impacts will outweighbenefits for most sectors that provide essentialgoods and services to society.
Climate change impacts will place immensestrains on public sector budgets.
Secondary effects of climate impacts caninclude higher prices, reduced income and joblosses.

Author(s)

Ruth, Matthias, Roy F. Weston, Dana Coelho, and Daria Karetnikov

Contact

cier at umd dot edu

Notes

The full report is available for free download at

http://www.cier.umd.edu/climateadaptation/

The Contribution of Non-market Valuation to Policy: The Case of Nonfederal Hyropower Relicensing

Rupak Thapaliya — Fri, 15 Aug 2008 10:44:51 -0500

Source:

Volume:

Year: 2008

Abstract

The contribution of nonmarket valuation studies to decisions about the operation of nonfederal hydroelectric facilities is examined. Hydropower licensing reforms by the Federal Energy Regulatory Commission to better weigh market and nonmarket tradeoffs did not require or use nonmarket valuation. License negotiation processes are interpreted as a substitute for valuation.

Author(s)

Kurt Stephenson and Leonard Shabman

Contact

Notes

Attachment	Size
2008-01 Contribution of Nonmarket Valuation to Policy-Hydrorelicensing.pdf	62.29 KB

Dams, Dam Removal, and River Restoration: A Hedonic Property Value Analysis

Rupak Thapaliya — Tue, 22 Apr 2008 14:37:21 -0500

Source: Contemporary Economic Policy

Volume: 26 No. 2

Year: 2008

Abstract

This article presents the results of a hedonic property value analysis for multiple hydropower sites along the Kennebec River in Maine, including the former site of the Edwards Dam in Augusta, Maine. The effect of the removal of the Edwards Dam on the Kennebec River in Maine is examined through consumer's marginal willingness to pay to be close to or distant from the dam site. Data from both before and after the dam was removed are used to estimate changes in marginal prices. A similar data set is also used to look at the effects of the remaining upstream dams on property values.
This article presents one of the first (to our knowledge) ex post analyses on the economic impact of dam removal on property values. As more privately owned dams in the United States come up for relicensing, evaluating the impacts with and without the dam will become increasingly important. This work can help inform those analyses.

Author(s)

Lynne Y. Lewis, Curtis Bohlen and Sarah Wilson

Contact

Notes

Attachment	Size
Lewis et al dam removal property values.pdf	4.24 MB

Does Small Dam Removal Effect Local Propoerty Values? An Emperical Analysis

Rupak Thapaliya — Tue, 22 Apr 2008 13:58:02 -0500

Source: Contemporary Economic Policy

Volume: Vol 26 No. 2

Year: 2008

Abstract

This paper uses hedonic analysis to examine the impact of small dam removal on property values in south-central Wisconsin. Data on residential property sales wereobtained for three categories of sites: those where a small dam remains intact, thosewhere a small dam was removed, and those where a river or stream has been free flowing for at least 20 yr. The primary conclusions that emerge from the data arethat shoreline frontage along small impoundments confers no increase in residentialproperty value compared to frontage along free-flowing streams and that nonfrontage residential property located in the vicinity of a free-flowing stream is more valuablethan similar nonfrontage property in the vicinity of a small impoundment.

Author(s)

Porvencher, Bill; Helen Sarakinos, Tanya Meyer

Contact

Notes

Attachment	Size
Provencher et al dam removal property values.pdf	350.16 KB

The Marginal Economic Value of Streamflow From National Forests

Rupak Thapaliya — Mon, 31 Mar 2008 09:20:56 -0500

Source:

Volume:

Year: 2004

Abstract

Changes in forest overstory lead to changes in runoff. This report estimates what such changes in runoff are worth to society using two sources of information: economicvaluation studies and, most importantly, water market transactions. Evidence from over2,000 transactions that occurred in the western U.S. over the past 14 years (1990 through 003) was examined to learn who is selling to whom and for what purpose, how muchwater is involved, and how much it is selling for. Roughly half of the transactions were sales of water rights; the rest were water leases. The transactions show that the price ofwater is highly variable both within and between western states, reflecting the localized nature of the factors that affect water prices. Ideally, if water market prices or valuationstudies are to be used to help determine the marginal value of water from specific areas, such as national forests, information from local markets or local studies should be used.Lacking site-specific value information, only rough estimates are possible.

Author(s)

Thomas C. Brown

Contact

Thomas C. Brown
Rocky Mountain Research Station
U.S. Forest Service
Fort Collins, Colorado

Notes

Attachment	Size
Brown 2004 - Marginal economic value of streamflow.pdf	1009.92 KB

Cost Effective Recovery Strategies for Snake River Chinook Salmon

Rupak Thapaliya — Wed, 26 Dec 2007 11:35:44 -0600

Source:

Volume:

Year: 2006

Abstract

Formulation of recovery plans for endangered salmon populations in the Columbia River Basin of North America is a complex, controversial resource-management issue. This report presents an integrated assessment model to analyze the biological-economic tradeoffs in recovery of Snake River spring/summer-run chinook salmon (Oncorhynchus tshawytscha).

The authors find that the removal of an estuarine predator, the Caspian tern (Sterna caspia), and elimination of adult salmon harvest are recovery measures that markedly increase long-term population-growth rates regardless of transport effectiveness. Dam breaching significantly increases growth rates under the best available estimate of transport effectiveness. The authors also conclude that recovery strategies in the cost-effective set depend on assumptions about transport effectiveness. Tern removal and harvest elimination are generally cost effective. At the best estimate of transport effectiveness, strategies that discontinue smolt transportation or breach dams are prevalent in the cost-effective set. In contrast, strategies that maximize transportation are prevalent in the cost-effective set if transport effectiveness is relatively high.

This paper links biology and economics through an integrated model thus providing a valuable tool for science-based policy and management.

The paper can be downloaded from Michael R. Moore's website at http://sitemaker.umich.edu/micmoore/working_papers

Author(s)

David L. Halsing and Michael R. Moore

Contact

Notes

Attachment	Size
Cost Effective Recovery Strategies for Snake river Chinook Salmon.pdf	196.89 KB

The Economic Benefits to Local Communities from Refuge Visitation

Rupak Thapaliya — Fri, 07 Dec 2007 11:44:41 -0600

Source: USFWS

Volume:

Year: 2007

Abstract

This US Fish and Wildlife Service filed a report with FERC on the economic value of refuge based recreation across the nation, on Dec 6, 2007. The main objective of the study was to estimate the national impact of refuges on their regional and local economies. This report studied 80 sample refuges (of a total of 548) and presented findings on:

1. Visitor Recreation-Related Expenditures

2. Economic Effects Associated With Refuge Visitation, and

3. Summary of Economic Effects of Refuge Visitation.

Summary findings:

1. In 2006, 34.8 million people visited wildlife refuges resulting in $1.7 billion in sales and $185 million in tax revenues.

2. Activities related to refuge visitation resulted in employment for 27,000 people

It concludes that recreational visits to national refuges generate substantial economic activity.

The report is available here.

Author(s)

Erin Carver & James Caudill

Contact

Notes

Attachment	Size
20071205 USFWS Economic Study on Refuge Visitation.pdf	1.21 MB

Economic valuation methodologies used by the Corps as identified from the policy and planning "Planning Guidance."

admin — Wed, 04 Apr 2007 10:18:25 -0500

Source:

Volume:

Year:

Abstract

The most important part of the evaluation process for the Corps is basing their decision on NED, the national economic development. The federal objective that the Corps engages on when dealing in water resource planning is to primarily decide upon a plan that contributes the greatest amount of benefits to national economic development, "...consistent with protecting the Nation's environment, pursuant to national environmental statutes, applicable executive orders, and other federal planning requirements." The Corps and the Federal government define contributions to NED as increases in the net value of the national output of goods and services, expressed in monetary units. The contributions to END include increases in those goods and services that both may be marketed and those that may not be marketed, i.e. natural resources.

Author(s)

US Corps of Engineers

Contact

Notes

Mail vs. telephone surveys: potential biases in expenditure and willingness to pay data

admin — Wed, 04 Apr 2007 10:18:25 -0500

Source:

Volume:

Year: 1998

Abstract

Author(s)

Whittaker , D. , Vaske , J.J., Donnelly , M.P. ,D. S. DeRuiter

Contact

Notes

Testing theories of agency behavior: evidence from hydropower project relicensingn decisions of the Federal Energy Regulatory Co

admin — Wed, 04 Apr 2007 10:18:22 -0500

Source:

Volume: August 7, 1998

Year: 1998

Abstract

Theories of agency behavior are tested via the empirical application of hydropower project relicensing by the Federal Energy Regulatory Commission (FERC). In the relicensing of each project, fish and wildlife afencies make formal recommendations to FERC on fish and wildlife protection at the project. FERC then enters a two-stage deliberation process during which it accepts; amends then accepts; or rejects each recommendation. We apply a count data model to explain the number of recommendations made per project and a bivariate probit model to explain FERC's disposition of the recommendations. The analysis covers 933 fish and wildlife recommendations made for 72 projects relicensed during 1980-96. Independent variables for the benefits and costs of the recommendations cannot be constructed because of FERC's deficient generation of economic information. A background section thus details the more serious limitations of FERC's application of economic analysis.
In explaining outcomes, a tension exists between the hierarchical control of Congress or the executive branch (the Progressive Reform model of agency behavior) and an agency's bureaucratic resistance to change (an evolutionary model of agency behavior). Key findings indicate that a new law (the Electric Consumers Protection Act of 1986) substantially altered FERC's fish and wildlife decisions, while a new administration (the Clinton administration, beginning 1993) exerted a mixed effect. Both events influenced the fish and wildlife agencies, as the number of recommendations made, per project, increased significantly at these junctures.

Author(s)

Moore , M.R. , Kershner , D.W., Maclin , E.B.

Contact

Notes

NSP: one answer is blowin' in the wind

admin — Wed, 04 Apr 2007 10:18:22 -0500

Source:

Volume: Wedensday, May 11, 1994 1B,5B

Year: 1994

Abstract

Northern States Power Co. (NSP) is "tremendously excited about wind power" the utility's chairman said. In August 1992 NSP agreed to build or purchase 100MW of electricity from wind machines in southwestern Minnesota by 1998. As part of the compromise that allows NSP to store nuclear waste in large steel casks at Prairie Island, the State Legislature required the utility purchase 425MW of electricity from wind farms by 2002. The NSP chairman cautioned that there may be problems with transmission lines or other concerns, but he said the utility has enough time to work them out. A cooperative project was begun recently to collect data on wind speeds during the next two years at eight sites that have potential for large scale wind farms.

Author(s)

Meersman , T.

Contact

Notes

Ecosystem Management in the United States: foreword

admin — Wed, 04 Apr 2007 10:18:22 -0500

Source:

Volume: S.L. Yaffee et al (eds) Island Press

Year: 1996

Abstract

Spurred by a growing recognition that many difficult environmental problems are really ecosystem problems, scientists, resource management professionals, and others were beginning to work ecological principles into public land management policy and practice. In addition to this new way of scientific thinking, a great deal of administrative attention was paid to finding new ways of resolving natural resource conflicts. Economists and administrators searched for "win-win" strategies of resource management. There were anecdotal reports of successes, but no wide ranging discussion of cooperative ecosystem management (CEM). An objective survey of CEM was commissioned by the Wilderness Society. The study was conducted in order to furnish government agencies (USDA, USFS, NPS, BLM) with information as well as to create a resource by which individuals, organizations, agencies, or corporations facing local environmental challenges could learn from the collective and individual experience of CEM projects nationwide.
While CEM appears quite promising, it is in many respects a new endeavor involving a lot of hard work. Most of the CEM projects surveyed received at least some public investment. Thus, the continued success of CEM revolves around the continued funding for programs. CEM represents a process by which more effective ecosystem protection can occur. However, we must ensure that the progress CEM has already made and the lessons CEM holds are not lost.

Author(s)

Nelson , G.

Contact

Notes

Economic analysis for EPA of the cushman hydroelectric project

admin — Wed, 04 Apr 2007 10:18:21 -0500

Source:

Volume: November 13, 1997 44pp

Year: 1997

Abstract

This report has been prepared at the request of EPA to provide an economic analysis of: 1) the costs to Tacoma of the mitigation measures I have been asked by EP to analyze (the "EPA straw man" mitigation measures), 2) how those costs would affect the total cost of Cushman Project generation and any required replacement generation, and 3) the consequences for TCL and its ratepayers of those costs. This report does not address either the environmental or economic benefits of the proposed mitigation measures, such as fishery and recreation benefits, which FERC will be obligated to consider in any Cushman licensing decision.
The proposed mitigation package would increase the cost of electricity produced at Cushman and reduce the amount of electricity generated at Cushman, without substantial rate increases and without jeopardizing Tacoma's competitive position in a deregulated market.

Author(s)

Marcus , D.

Contact

Notes

An economic approach to giving "equal consideration" to environmental values in FERC hydropower relicensing

admin — Wed, 04 Apr 2007 10:18:21 -0500

Source:

Volume: Vol. 5(2) 96-108

Year: 1995

Abstract

The economic value of water that flows over a scenic waterfall was measured using the contingent valuation method. Allowing both the value per day and trips to vary with flow resulted in values per cubic feet per second (cfs) of flow ranging from $1000 for the first 100 cfs to $300 for additional flow at 550cfs. Accounting for the value of foregone hydropower, the economically optimum flow just considering aesthetics of the falls was about 235-240 cfs during the main recreation season. Monthly analysis during the recreation season suggested that optimum flows varied from 165-175 cfs during the early and later recreation season to 500-600 cfs during the four prime recreation months. These flows were three to ten times greater than current minimum flows. Recommendations are made that the Federal Energy Regulatory Commission should use non-market valuation techniques such as contingent valuation surveys to ensure that environmental values are given equal consideration with power values in dam licensing and relicensing decisions.

Author(s)

Loomis , J. , Feldman , M.

Contact

Notes

Environmental Constraints on Hydropwer: An Ex Post Benefit-Cost Analysis of Dam Relicensing in Michigan

admin — Wed, 04 Apr 2007 10:18:20 -0500

Source: Land Economics

Volume: Vol. 82 (3), pp. 384-403

Year: 2006

Abstract

We conduct a benefit-cost analysis of a relicensing agreement for two hydroelectric dams in Michigan. The agreement changed daily conditions from peaking to run-of-river flows. We consider three categories of costs and benefits: producer costs of adapting electricity production to the new time profile of hydroelectric output; benefits of reductions in air pollution and green house gas emissions; and benefits of improved recreational fishing. The best estimates suggest that the aggretate benefits are more than twice as large as the producer costs. The conceptual and empreical methods provide a template for investigating the effects of an environmental constraint on hydroelectric dams.

Author(s)

Kotchen, M.J., Moore, M.J. . Lupi, F.,E.S. Rutherford

Contact

Notes

Protecting Fish

admin — Wed, 04 Apr 2007 10:18:19 -0500

Source:

Volume: October 1994 pp72-76

Year: 1994

Abstract

The United States Department of Energy's Hydropower Program has recently completed a study of fish passage and protection mitigation practices at conventional hydroelectric projects. The study used 16 projects as case studies to provide detailed illustrations of mitigation practices, allowing a better understanding of the resource and economic requirements, and the ramifications of mitigation choices. The study also surveyed fish passage and protection mitigation practices at 1,825 hydroelectric plants regulated by FERC to determine the frequencies of occurrence, temporal trends and regional practices based on FERC regions. Facilities with upstream mitigation employed fish ladders (62% of facilities), trapping and hauling (11%), fish lifts (5%), and other methods (35%). Some facilities used multiple forms of mitigation, this accounts for the percentage total greater than 100%. Downstream mitigation is used in some form at 13% of the 1,825 sites studied. Mitigation costs varied greatly, depending on the size of the facility and extent of mitigation. Fish ladder capital costs rang from $1000- $34.6million with an average cost of $7.4million per fish ladder. The costs of fish passage and protection measures can have significant effects on the economics of a project. However, forecasting the need for fish passage mitigation is complicated due to many site-specific concerns. Specific mitigation needs are often met with specific technologies including fish lifts, trapping and hauling systems, or fish ladders. In any case, mitigation determinations should be made with an eye toward biological needs as well as economic feasibility.

Author(s)

Francfort, J., Rinehart, B.

Contact

Notes

American Rivers produced abstract

A research report on the value of dam removal and landlocked salmon restoration on the Clyde River to Vermont state residents

admin — Wed, 04 Apr 2007 10:18:19 -0500

Source:

Volume: July 19, 1996

Year: 1996

Abstract

This report presents the results of an economic study of the Clyde River performed by the University of Vermont (UVM) and the National Wildlife Federation (NWF). The purpose of this study was to determine the economic value that households across Vermont attribute to removal of the Newport No. 11 Diversion Dam an its generator and restoration of landlocked Atlantic salmon and other fish to the Clyde River. A first study, published on May 17, 1996, looked at the economic value of removal for households in Orleans County only. The Orleans County report was released before the completion of this statewide report in order to provide the Vermont natural Resource Council (VNRC) some analysis on the value of removing the Newport No. 11 Diversion Dam and the powerstation as soon as the information became available. This is the final and complete report containing both the Orleans County and statewide analyses.

Author(s)

Gilbert, A.H., Frymier, L.G., Dolan, K.

Contact

Notes

Nonuse economic value: emerging policy analysis tool

admin — Wed, 04 Apr 2007 10:18:19 -0500

Source:

Volume: Vol. 4(4) 280-291

Year: 1993

Abstract

Nonusers, or individuals who never visit or otherwise use a natural resource, may nevertheless be affected by changes in its status or quality. Monetary expression of their preferences for these resources is know as nonuse or passive-use economic value. Empirical estimates indicate that nonuse value may be substantial for some resources. Inclusion of nonuse value in economic efficiency analyses may alter the outcome of these analyses in some cases. So far, applications have remained largely in the research realm. However, changes in the legal and institutional framework and recent policy pronouncements make it probable that nonuse value will play an important role in natural resource decision making in the future. We briefly discuss the concept of nonuse economic value and its relevance in water resource decision making. The current institutional framework and the applicability and integration of nonuse value within the National Environmental Policy Act (NEPA) process are explored. Details of an ongoing application for the Glen Canyon Environmental Studies Program are described.

Author(s)

Harpman, D.A., Welsh, M.P., Bishop, R.C.

Contact

Notes

Economic values of freshwater in the United States

admin — Wed, 04 Apr 2007 10:18:19 -0500

Source:

Volume: Final Report, October 1995

Year: 1995

Abstract

This report presents nearly 500 water value estimates for four withdrawal uses (domestic, irrigation, industrial processing, and thermoelectric power generation) and four instream uses (hydropower, recreation/fish and wildlife habitat, navigation, and waste disposal). The first section discusses important caveats for interpreting the data and the relevance of water values for achieving efficient use of the resource. Tables and graphs are used to summarize and help interpret the water-value data that have been converted to constant 1994 dollars. Section 3 presents the data by geographic region to illustrate how the values within a region vary among uses. Section 4 presents the data for individual water uses to illustrate how the values for specific uses vary within each of the 18water resources regions that comprise the conterminous United States. Information such as the location, year, and methodology used to derive each of the values are presented in the appendices along with each of the water value estimates. The data are organized by water resources region in Appendix B and by type of use in Appendix C.

Author(s)

Frederick, K., VandenBerg, T., Hanson, J.

Contact

Resources for the Future, 1616 P street, NW,, Washington, DC

Notes

Economic Impacts, Value Added, and Benefits in Regional Project Analysis

admin — Wed, 04 Apr 2007 10:18:19 -0500

Source:

Volume: May 1991, American Agricult. Economics Ass.

Year: 1991

Abstract

This paper addresses five issues encountered when estimating secondary benefits in regional project analysis; (a) the correction for opportunity cost of factors used, (b) the treatment of mobile factors, (c) the effect of economies of size, (d) the role of forward linkages, and (e) the role of spatial structure of economic regions. The first four are reasons that only a small part, if any, of regional impacts can be treated as regional net benefits. The fifth is a reason that, when secondary benefits or damages do exist, their correct estimation can depend on the spatial structure of the affected areas.

Author(s)

Hamilton, Joel R., Whittlesey, Norman K., Robison, M. Henry,

Contact

Notes

Deciding competing resource use issues at FERC--from theory to practice

admin — Wed, 04 Apr 2007 10:18:18 -0500

Source:

Volume: n/a

Year: 1993

Abstract

By the close of the December 31, 1991, deadline, the licensees of 158 hydroelectric plants, totaling roughly 2,000 megawatts of installed capacity, had filed applications for relicense with the Commission. Though we on the Commission staff will now need to consider many aspects of each proposal, the most controversial aspect we'll face is how to choose among competing uses of each waterway. In this paper, I'll present both the theories that guide how we select among applicants' proposals and alternative proposals and the methods we use to make these choices. After discussing the theory and methods, I'll give examples from two recent environmental assessments to show how we choose the license option that we think gives the greatest benefit to the public. This way, you'll see how we apply these methods, what aspects are important, and what difficulties we face in making these choices.

Author(s)

Fargo, J.M.

Contact

Notes

Workshop on evaluating the economics of hydroelectric projects at FERC

admin — Wed, 04 Apr 2007 10:18:18 -0500

Source:

Volume: February 3, 1998

Year: 1998

Abstract

The two methods [FERC] now uses to evaluate the economic value of power from hydro projects have evolved through the years and generally conform to techniques set forth in the Principles and Standards, which the Water resources Council published as final rules in September 1980. Both methods attempt to quantify how an electric power system's future costs would differ with and without a proposed or existing hydro project. The two methods: 1. Simulated market price (often called marginal price, avoided cost, or incremental cost in the electric utility industry) 2. Cost of the most likely thermal alternative

Author(s)

FERC

Contact

Notes

Handbook for estimating the economic value of changes in fish and wildlife-related resources

admin — Wed, 04 Apr 2007 10:18:18 -0500

Source:

Volume: EC-96-13, May 1996

Year: 1996

Abstract

This handbook is designed to help determine economic valuations for changes in fish and wildlife habitat dude to government activities or decisions. Valuing these resources requires recognition that traditional economic valuation techniques (market prices) are not adequate. A researcher needs to use additional techniques to identify and quantify values that contribute to the well-being of our society. Economists believe that these values need to be represented in economic terms when managerial decisions are made. Many government agencies have supported the efforts to value nonmarket goods in recent years. These agencies have issued reports which follow the development of nonmarket valuations in economic theory. Currently, the "Principle and Guidelines"" provide guidance for determining economic values and recognizes "the willingness to pay" principle which underlies the nonmarket valuation technique. Economists determine economic efficiency through measurement of net willingness to pay and producer profit. These values represent the "net" value to consumers and producers, above the transaction costs. Efficiency is increased if the sum of these values is increased. Efficiency is maximized under purely competitive markets. Unfortunately, many goods are not provided in purely competitive market, leading to inefficient allocations of goods in our society. Public goods are one area of inefficient allocations. Certain resources provide public goods to society. Under a "market only" analysis, these goods typically would not be available, as there are no prices representing their value to society. Therefore, other techniques are necessary to measure their nonmarket values. Total value for nonmarket goods can be divided into use and nonuse values. Techniques for estimating use values include the contingent valuation method, the travel cost method, and unit day value method. This hand book also discusses other techniques sometimes used and suggests why these are less preferred. Also, a benefit transfer technique was discussed. This technique applies results from other studies to provide estimates of value when a more thorough technique is not feasible. This handbook also shows estimates of values found using the techniques discussed.

Author(s)

Ekstrand, E.R.

Contact

Notes

Evaluating relicense proposals at the Federal Energy Regulatory Commission

admin — Wed, 04 Apr 2007 10:18:18 -0500

Source:

Volume: Paper No. DPR--2 April 1991

Year: 1991

Abstract

In this paper, I discuss how we on the Commission staff use economic principles to evaluate relicense proposals and how we use the results of our economic and environmental studies to choose the option that we think gives the greatest benefit to the public. I'll describe the two kinds of project changes applicants often propose--environmental enhancements and power improvements. And I'll talk about how we decide among the applicants' proposals and alternative proposals that we, the agencies, and the interveners make: the baseline we use to compare them, how many alternatives we consider, and the three methods we use. After this, I'll give you two examples of choosing among relicense proposals: this way, you'll see how we apply the method we use the most and what difficulties we face in making these choice. This paper is and outline instead of a detailed manual. It's intended both for us and for those of you outside the Commission. When we evaluate relicense applications, this paper will help us organize our studies. If you are involved in relicensing outside the Commission, I think this paper will help you in two ways: you'll understand better how we look at relicense proposals and you'll be able to make a better case for the proposal you think gives the greatest benefit to the public.

Author(s)

Fargo, J.M.

Contact

Notes

Trends in Americans' outdoor recreation

admin — Wed, 04 Apr 2007 10:18:17 -0500

Source:

Volume: pp. 133-144

Year: 2000

Abstract

Author(s)

Cordell, H.K., Super, G.K.