Hydropower rent in Africa: An evaluation by optimization of the total costs of production

La rente hydroélectrique en Afrique: une évaluation avec taxation et optimisation des coûts totaux de production

Yris Fondja Wandji () and Jules Sadefo-Kamdem
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Yris Fondja Wandji: UMR 228 Espace-Dev, Espace pour le développement - IRD - Institut de Recherche pour le Développement - UPVD - Université de Perpignan Via Domitia - AU - Avignon Université - UR - Université de La Réunion - UM - Université de Montpellier - UG - Université de Guyane - UA - Université des Antilles, MINEA - UG - Université de Guyane
Jules Sadefo-Kamdem: MRE - Montpellier Recherche en Economie - UM - Université de Montpellier
Authors registered in the RePEc Author Service: Jules SADEFO KAMDEM

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Abstract: The main goal of this study is to estimate the potential economic rent generated in the African hydropower sector. To this end, the methodology used is to calculate the rent as the difference between optimized total costs of two hypothetical systems: one with hy-dropower and the other without hydropower. Of course, our results depend on a number of key parameters of the electricity industry. Our calculation gives a value of 2 $/MWh of hydropower rent. Thus, developing hydropower in Africa would help the continent to en-sure its energy transition. This exploitation does not only provide surplus return for coun-tries with significant potential, but it is also a source of revenue for all other hydropower importing countries. This calls for joint implementation of projects.

Keywords: Economic rent; Hydropower; Africa; Rente économique; Hydroélectricité; Afrique (search for similar items in EconPapers)
Date: 2020-05-25
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Published in Région et Développement, 2020, 52, pp.147-170

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03024772

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