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Optimal Provision of Hydroelectric Power under Environmental and Regulatory Constraints


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  • Brian K. Edwards
  • Silvio J. Flaim
  • Richard E. Howitt


Hydroelectric power plants can quickly and inexpensively respond to changes in electricity demand. However, this operational flexibility can cause negative environmental impacts and these environmental effects are mitigated through direct restrictions on hydropower operations, rather than taxes or other marketbased mechanisms. A dynamic model of hydroelectric generation is used to derive hourly hydroelectric generation and purchases of replacement power to meet contract demand in the presence of these operational restrictions. The pattern of hydropower generation is shown to depend on differences between on-peak and off-peak spot electricity prices within the operational restrictions set by external regulatory mechanisms.

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Bibliographic Info

Article provided by University of Wisconsin Press in its journal Land Economics.

Volume (Year): 75 (1999)
Issue (Month): 2 ()
Pages: 267-283

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Handle: RePEc:uwp:landec:v:75:y:1999:i:2:p:267-283

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Cited by:
  1. Bjarne Steffen, 2011. "Prospects for pumped-hydro storage in Germany," EWL Working Papers 1107, University of Duisburg-Essen, Chair for Management Science and Energy Economics, revised Dec 2011.
  2. Shilei Niu & Margaret Insley, 2010. "On the Economics of Ramping Rate Restrictions at Hydro Power Plants: Balancing Profitability and Environmental Costs," Working Papers 1017, University of Waterloo, Department of Economics, revised Dec 2010.
  3. Claude Crampes & Michel Moreaux, 2009. "Pumped storage and energy saving," LERNA Working Papers 09.17.293, LERNA, University of Toulouse.
  4. Bielsa, Jorge & Duarte, Rosa, 2003. "Modelling water resource allocation: a case study on agriculture versus hydropower production," MPRA Paper 36923, University Library of Munich, Germany.
  5. Crampes, Claude & Moreaux, Michel, 2010. "Pumped storage and cost saving," Energy Economics, Elsevier, vol. 32(2), pages 325-333, March.
  6. Kosnik, Lea, 2008. "Consolidation and ownership trends of nonfederal hydropower generating assets, 1980-2003," Energy Economics, Elsevier, vol. 30(3), pages 715-731, May.


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