Introduction

Abstract

In this introductory chapter we provide an overview of the problems addressed in the book. Altered flows in regulated rivers generally have strong negative impacts on most aquatic organisms and on those in the riparian zone, as well as detrimental effects on recreational possibilities and aesthetic values associated with rivers. On the other hand, hydropower offers energy free from emissions to air. In addition, hydropower is extremely cost-effective in countries with suitable natural conditions, like Norway and Sweden. Taken together, these facts suggests a conflict between competing uses of river resources in general and between policy objectives in particular. Cost-benefit analysis (CBA) offers a formal approach to delineating the costs and benefits of a changed (water) policy and results in information that may provide useful information about policies. Because the origins of empirical CBA can be traced back to dam constructions in the US in the 1930s, there is a very substantial body of relevant literature to tap. We briefly discuss the central results of this literature and contrast our own analysis to the ”older” literature. Finally, we present the particular hydropower plant that is the focus of this book. The two scenarios that we consider are introduced. Both scenarios imply that water is diverted from electricity generation to the natural river channel (dryway) creating environmental and recreational benefits.