PT  - JOURNAL ARTICLE
AU  - Kotchen, Matthew J.
AU  - Moore, Michael R.
AU  - Lupi, Frank
AU  - Rutherford, Edward S.
TI  - Environmental Constraints on Hydropower: An Ex Post Benefit-Cost Analysis of Dam Relicensing in Michigan
AID  - 10.3368/le.82.3.384
DP  - 2006 Aug 01
TA  - Land Economics
PG  - 384--403
VI  - 82
IP  - 3
4099  - http://le.uwpress.org/content/82/3/384.short
4100  - http://le.uwpress.org/content/82/3/384.full
SO  - Land Econ2006 Aug 01; 82
AB  - 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)