Economic Impacts of Climate Change on the Canadian Great Lakes Hydro–Electric Power Producers: A Supply Analysis

Abstract

Current climate change research indicates that the Great Lakes hydrological system will be affected by future climate. Changes in the lake levels and flows will, in turn, impact the ability of Great Lakes hydro–electric power producers to generate electricity. Using technical specifications of turbine capacity, turbine loading orders and climate change projections, the electricity generating capacity is estimated under several climate change scenarios. These estimations are evaluated using a selection of pricing options according to economic assumptions concerning adaptation and time frame for impacts and adaptation. This work is intended to promote interest in further studies on the economic impacts of climate change. © 2004, Taylor & Francis Group, LLC.