Concluding Remarks

  • Per-Olov Johansson
  • Bengt Kriström


This chapter simply summarizes the findings of this book. The framework developed in the book integrates several key issues, including, but not limited to: a contract between the hydro power plant and another party (local residents) generating the general equilibrium cost-benefit rule; the contract is a corner stone of our referendum-style contingent valuation study; the tax system in the status quo; (partial) foreign ownership of the plant; trade in electricity; trade in renewable energy certificates; trade in carbon emission permits; externalities of replacement power (generated in other countries); value of loss of regulating (balancing power) and other system services; transmission of electricity modeled as provided by natural monopolies; downstream hydrological externalities and environmental benefits (aesthetic and otherwise). We use this framework to assess a proposal according to which water is diverted from electricity generation to the natural river channel (dryway) creating environmental and recreational benefits.


Risk Aversion General Equilibrium Small Open Economy Spot Price Expected Utility Maximizer 
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Copyright information

© Springer Berlin Heidelberg 2012

Authors and Affiliations

  • Per-Olov Johansson
    • 1
  • Bengt Kriström
    • 2
  1. 1.Department of EconomicsStockholm School of EconomicsStockholmSweden
  2. 2.Centre for Environmental and Resource EconomicsUmeå University and SLUUmeåSweden

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