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Despite the extensive body of literature on energy economics, very little economics research has been conducted that focuses specifically on dams and hydroelectric power. This work addresses this deficiency by examining the multiple roles that dams play, as well as the role of hydroelectric power within the context of the energy industry. This volume provides an in-depth analysis of how dams are used in water management, flood control and irrigation, as well as the environmental impacts of their construction and operation. It examines the types of restrictions imposed on operators to mitigate impacts, and the resulting tradeoffs between achieving hydroelectric generation and environmental management objectives. Also covered is the role of hydroelectric power in both a regulatory framework and within the context of the energy industry deregulation that has occurred in the US and other countries. A simple dynamic model of a hydroelectric generating facility forms the basis for other models discussed. Case studies of dams operated by the United States Department of Energy are also included.