Concluding Remarks

Abstract

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.