Costs and benefits of improving wild salmon passage in a regulated river

Cecilia Håkanssona* a Swedish University of Agricultural Sciences, Department of Forest Economics , S-901 83, Umea , Sweden * E-mail: cecilia.hakansson@sekon.slu.se This paper presents a cost-benefit analysis (CBA) of a trade-off between salmon and hydropower production in the Ume/Vindel River, northern Sweden. A distinctive element of this analysis is that estimated changes in resource conditions are based on detailed river-specific data. A salmon population model was used to develop the scenario and a novel willingness to pay (WTP) question, which caters for uncertainty in a different manner, provided an interval estimate. Non-use values are the major contributors to the benefit (96–517 millions of Swedish kronor (MSEK)) of increasing the stock of wild salmon. Sensitivity analysis suggests that the opportunity costs in terms of lost electricity are typically higher than the estimated benefits.