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Indirect Economic Impacts of Dams

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Impacts of Large Dams: A Global Assessment

Part of the book series: Water Resources Development and Management ((WRDM))

Abstract

Dam projects generate a vast array of economic impacts—both in the region where they are located, and at inter-regional, national and even global levels. These impacts are generally evaluated in terms of additional output of agricultural commodities, hydropower, navigation, fishing, tourism, recreation, prevention of droughts and reduction in flood damages, and are referred to as direct impacts.

This chapter is based on a larger study on the subject sponsored by the World Bank and carried out by a number of researchers. For details see Ramesh Bhatia, Rita Cestti, Monica Scatasta and R.P.S. Malik (eds), Indirect Economic Impacts of Dams: Case Studies from India, Egypt and Brazil, Academic Foundation, New Delhi and World Bank, 2008.

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Notes

  1. 1.

    Semi-input-output (S-I/O) models represent a variant of I/O models whereby a distinction is made between tradable and non-tradable goods. The former are assumed to have an exogenously set domestic level of output, so that any change in demand will be reflected in a change in exported quantities. In terms of domestic production, therefore, the whole brunt of demand shocks is borne by non-tradable goods. The implication of this distinction is that induced, consumption-based impacts will reverberate throughout the economy only via adjustments in non-tradable goods and their inter-industry linkages. This characterisation is important, in that it refines the representation of the specific regional structure of production, reducing the risk of overestimating induced impacts that are not felt by regional sectors.

  2. 2.

    A Social accounting matrix can feed into a standard CGE model.

  3. 3.

    A feddan is equal to 1.038 acres.

  4. 4.

    It refers to regional development districts.

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Cestti, R., Malik, R.P.S. (2012). Indirect Economic Impacts of Dams. In: Tortajada, C., Altinbilek, D., Biswas, A. (eds) Impacts of Large Dams: A Global Assessment. Water Resources Development and Management. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-23571-9_2

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