Material Insights · Understanding the Material World

Run-of-river and small hydro and Water

Run-of-river and small hydro needs water; their prices have moved together.

Run-of-river and small hydro (energy) and Water (commodity): 2 relationships.

How they are linked

1. Material need

Physical flow · Direct · Water → Run-of-river and small hydro

Building or running Run-of-river and small hydro needs water.

2. Price link: resource

Cost and price · Weak · Both ways

Output follows river flow, which peaks in the monsoon and snowmelt and falls in dry months. The US water index is a California market price, so it shows local scarcity rather than small hydro costs.

  • 0.09 monthly change correlation
  • -0.28 12-month change correlation
  • -0.02 fitted elasticity

Built from the site data on production routes, energy flows, industry value chains, input-output tables and prices.