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Per-Olov Johansson

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Per-Olov Johansson and Bengt Kriström

The typical approach in benefit-cost analysis is partial equilibrium. Thus, a policy’s impacts on other markets are ignored. We discuss partial equilibrium evaluation versus general equilibrium ones. It is shown that the rules coincide when markets are perfect and the considered policy is (infinitesimally) small. If changes in some parameters are discrete, the approaches produce different outcomes, in general. In particular, market-based (Marshallian) demand curves no longer reflects the willingness-to-pay for, say, a change in a price. Therefore, income-compensated (Hicksian) tools must be employed. Greater technical detail is expected here that may be more familiar to graduate students in economics.

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Per-Olov Johansson and Bengt Kriström

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Edited by Per-Olov Johansson and Bengt Kriström

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Per-Olov Johansson and Bengt Kriström

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Per-Olov Johansson and Bengt Kriström

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Edited by Per-Olov Johansson and Bengt Kriström

This important book sheds light on the ways in which modern tools of welfare economics can be used to assess the benefits and costs of resource conflicts involving hydropower. The chapters highlight key methodological issues in this area; ranging from the intersection between cost–benefit analysis and behavioral economics, to the value of load balancing services provided by hydropower. The inclusion of insights from expert contributors from both sides of the Atlantic brings a unique and interesting range of viewpoints to the work.
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Thomas Aronsson, Per-Olov Johansson and Karl-Gustaf Löfgren