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The Regulatory Noose: Logan City’s Adventures in Micro-Hydropower

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  • Megan Hansen

    (Department of Economics and Finance, Utah State University, Logan, UT 84322, USA)

  • Randy T. Simmons

    (Department of Economics and Finance, Utah State University, Logan, UT 84322, USA)

  • Ryan M. Yonk

    (Department of Economics and Finance, Utah State University, Logan, UT 84322, USA)

Abstract

Recent growth in the renewable energy industry has increased government support for alternative energy. In the United States, hydropower is the largest source of renewable energy and also one of the most efficient. Currently, there are 30,000 megawatts of potential energy capacity through small- and micro-hydro projects throughout the United States. Increased development of micro-hydro could double America’s hydropower energy generation, but micro-hydro is not being developed at the same rate as other renewable sources. Micro-hydro is regulated by the Federal Energy Regulatory Commission and subject to the same regulation as large hydroelectric projects despite its minimal environmental impact. We studied two cases of micro-hydro projects in Logan, Utah, and Afton, Wyoming, which are both small rural communities. Both cases showed that the web of federal regulation is likely discouraging the development of micro-hydro in the United States by increasing the costs in time and funds for developers. Federal environmental regulation like the National Environmental Policy Act, the Endangered Species Act, and others are likely discouraging the development of clean renewable energy through micro-hydro technology.

Suggested Citation

  • Megan Hansen & Randy T. Simmons & Ryan M. Yonk, 2016. "The Regulatory Noose: Logan City’s Adventures in Micro-Hydropower," Energies, MDPI, vol. 9(7), pages 1-16, June.
    • Handle: RePEc:gam:jeners:v:9:y:2016:i:7:p:482-:d:72581
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    References listed on IDEAS

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    3. Lea Kosnik, 2010. "Balancing Environmental Protection and Energy Production in the Federal Hydropower Licensing Process," Land Economics, University of Wisconsin Press, vol. 86(3).
    4. Pierson, Paul, 2000. "Increasing Returns, Path Dependence, and the Study of Politics," American Political Science Review, Cambridge University Press, vol. 94(2), pages 251-267, June.
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    1. Zafar Alam & Yoshinobu Watanabe & Shazia Hanif & Tatsuro Sato & Tokihiko Fujimoto, 2021. "Community-Based Business on Small Hydropower (SHP) in Rural Japan: A Case Study on a Community Owned SHP Model of Ohito Agricultural Cooperative," Energies, MDPI, vol. 14(11), pages 1-14, June.
    2. Adamantia Zoi Vougioukli & Eleni Didaskalou & Dimitrios Georgakellos, 2017. "Financial Appraisal of Small Hydro-Power Considering the Cradle-to-Grave Environmental Cost: A Case from Greece," Energies, MDPI, vol. 10(4), pages 1-20, March.

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