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Evaluation of cost efficiency in hydropower-related biodiversity restoration projects in Sweden

a stochastic frontier approach

Tafesse Tirkaso, Wondmagegn and Gren, Ing-Marie (2018). Evaluation of cost efficiency in hydropower-related biodiversity restoration projects in Sweden. Uppsala: (NL, NJ) > Dept. of Economics, Sveriges lantbruksuniversitet. Working paper series / Swedish University of Agricultural Sciences, Department of Economics ; 2018:01
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Abstract

Various restoration projects intended to mitigate the adverse ecological effects of hydropower plants, e.g., restoration of fish habitats and spawning grounds, have been implemented in different parts of Sweden. However, it is unclear whether these projects are economically in line with least-cost principles. Therefore, we estimated the cost frontier function of the projects and predicted the corresponding efficiency level by a stochastic frontier analysis. The estimates are based on a survey data from 245 projects in Sweden that are carried out between 1986 and 2015. This dataset contains expert judgments on the effects of each projects in terms of different ecological indicators. The results indicated an evidence of cost inefficiency in the projects, which had an average efficiency score of 55%, suggesting potential to minimize cost efficiency loss by 45%. Factors such as project duration, project management class, and restoration measure type were statistically significant determinants of the cost inefficiency score. Notably, projects owned by private and non-government principals showed better performance than projects owned by municipalities and national authorities such as the Swedish Forestry Agency and the Swedish Transport Administration.

Authors/Creators:Tafesse Tirkaso, Wondmagegn and Gren, Ing-Marie
Title:Evaluation of cost efficiency in hydropower-related biodiversity restoration projects in Sweden
Subtitle:a stochastic frontier approach
Series/Journal:Working paper series / Swedish University of Agricultural Sciences, Department of Economics (1401-4068)
Year of publishing :2018
Number:2018:01
Number of Pages:23
Place of Publication:Uppsala
Publisher:Department for Economics, Swedish University of Agricultural Sciences
ISSN:1401-4068
Language:English
Publication Type:Report
Article category:Other scientific
Full Text Status:Public
Agris subject categories.:X Agricola extesions > X70 Economics and management
Subjects:(A) Swedish standard research categories 2011 > 5 Social Sciences > 502 Economics and Business > Economics
(A) Swedish standard research categories 2011 > 5 Social Sciences > 502 Economics and Business > Business Administration
Keywords:hydropower, biodiversity restoration, cost efficiency, stochastic frontier analysis
URN:NBN:urn:nbn:se:slu:epsilon-e-4956
Permanent URL:
http://urn.kb.se/resolve?urn=urn:nbn:se:slu:epsilon-e-4956
ID Code:15560
Faculty:NJ - Fakulteten för naturresurser och jordbruksvetenskap
Department:(NL, NJ) > Dept. of Economics
Deposited By: SLUpub Connector
Deposited On:18 Jul 2018 11:28
Metadata Last Modified:09 Sep 2020 14:17

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