The intensified use of hydropower plays a substantial role in the Austrian energy sector. There are indeed plans to open up the remaining potentials, especially in the field of small-scale hydropower. However, hydropower creates multiple impacts. Although investments in hydropower are undisputed due to security of supply issues, climate change and dependency concerns, the technology is subject to some disadvantages. Hydropower plants are often seen as a blot on the landscape and a threat for the ecosystem, especially for fish and other water-dependent wildlife. Accordingly, hydropower plants are principally in conflict with nature conservation as for instance the European Water Framework Directive. With the help of a discrete choice model the trade-off between economic and climate-related advantages and the negative environmental side effects of new hydropower schemes was identified and quantified. While people value the economic (employment effects) and environmental (reduced air emissions) benefits related to the generation of electricity from hydroelectric power, they wish to be compensated for the loss of nature and landscape new hydropower plants are associated with. Moreover, confirmation of the “Not in my backyard” phenomenon was found, meaning that people generally prefer the construction of new hydropower stations, but not close to their homes.