Markus Bliem

Exploring the public value of increased hydropower use: a choice experiment study for Austria

This paper applies a choice experiment to estimate how Austrian households value the multiple impacts associated with future hydropower investments. Clear evidence was obtained that Austrian households are willing to pay for an expansion of hydropower capacities. More precisely, Austrians are willing to incur extra costs for economic (employment) and environmental (reduced air emissions) benefits related to the generation of electricity from hydroelectric power, but wish to be compensated for the loss of nature and landscape new hydropower plants are associated with. This relation can formally be denoted as the ‘energy–water trade-off’ imposed by the use of hydropower. Moreover, confirmation of the ‘Not in my backyard’ phenomenon was found, meaning that people prefer the construction of new hydropower stations, but not close to their homes.