Idsø, J. Small Scale Hydroelectric Power Plants in Norway. Some Microeconomic and Environmental Considerations. Sustainability2017, 9, 1117.
Idsø, J. Small Scale Hydroelectric Power Plants in Norway. Some Microeconomic and Environmental Considerations. Sustainability 2017, 9, 1117.
Idsø, J. Small Scale Hydroelectric Power Plants in Norway. Some Microeconomic and Environmental Considerations. Sustainability2017, 9, 1117.
Idsø, J. Small Scale Hydroelectric Power Plants in Norway. Some Microeconomic and Environmental Considerations. Sustainability 2017, 9, 1117.
Abstract
The development of small scale hydroelectric power plants in Norway is determined by natural conditions, policies, attitudes and property rights. The owner of the river is the central decision maker. It is he who decides whether he will develop the power plant himself, Whether he wants to enter into a contract with an external investor and let him develop the power plant, whether he will sell his property rights or postpone the decisions. All available choices will involve risk. In order for him to make the best choice he must find the certainty equivalent to each of the choices and choose the one with the highest certainty equivalent. This is the first time the utility theory of John von Neumann and Oskar Morgenstern has been applied to decision makers in the hydro power industry in Norway.
Keywords
small scale hydroelectric power; neumann-mortenstern utility theory; environmental effects of hydro power; hydropower and risk
Subject
Business, Economics and Management, Economics
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
