Abstract

This paper presents a cost-benefit analysis (CBA) of a trade-off between salmon and hydropower production in the Ume/Vindel River, northern Sweden. A distinctive element of this analysis is that estimated changes in resource conditions are based on detailed river-specific data. A salmon population model was used to develop the scenario and a novel willingness to pay (WTP) question, which caters for uncertainty in a different manner, provided an interval estimate. Non-use values are the major contributors to the benefit (96-517 millions of Swedish kronor (MSEK)) of increasing the stock of wild salmon. Sensitivity analysis suggests that the opportunity costs in terms of lost electricity are typically higher than the estimated benefits.

Keywords

classic and interval open-ended (CIOE) question; contingent valuation; cost-benefit analysis; hydropower; salmon; valuation uncertainty

Published in

Journal of Environmental Planning and Management
2009, Volume: 52, number: 3, pages: 345-363
Publisher: ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD

SLU Authors

• Håkansson, Cecilia

  • Department of Forest Economics, Swedish University of Agricultural Sciences
    

UKÄ Subject classification

Environmental Sciences
Economics


Publication identifier

DOI: https://doi.org/10.1080/09640560802703249

Permanent link to this page (URI)

https://res.slu.se/id/publ/44586