Local Economic Impacts of Hydroelectric Power Plants: Evidence from Brazil.

This paper evaluates the short- and medium-run effects of large hydroelectric power plant (HPP) construction on the economic development of Brazilian municipalities. Using the synthetic control method, we estimate the effects for 82 municipalities affected by HPP construction between 2002 and 2011....

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Publicado en:Economía Vol. 24; no. 1; pp. 105 - 124
Autores principales: Costa, Francisco, Szerman, Dimitri, Assunção, Juliano
Formato: Artículo
Publicado: London School of Economics & Political Science 2025
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      pub: London School of Economics & Political Science
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        191613859
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      tig:
        atl: Local Economic Impacts of Hydroelectric Power Plants: Evidence from Brazil.
      aug:
        au:
          Costa, Francisco
          Szerman, Dimitri
          Assunção, Juliano
        affil:
          FGV EPGE, Brazil
          Amazon, Germany
          PUC-Rio & Climate Policy Initiative, Brazil
      su:
        Brazil
        Economic development
        Regional development
        Economic expansion
        Cities & towns
        Hydroelectric power plants
        Construction projects
        Causal inference
      sug:
        subj:
          Economic development
          Regional development
          Economic expansion
          Cities & towns
          Brazil
          Other Heavy and Civil Engineering Construction
          Hydroelectric Power Generation
          Hydroelectric power plants
          Construction projects
          Causal inference
      keyword:
        dams
        employment
        Hydro-power
        infrastructure
        local development
        dams
        employment
        Hydro-power
        infrastructure
        local development
      ab: This paper evaluates the short- and medium-run effects of large hydroelectric power plant (HPP) construction on the economic development of Brazilian municipalities. Using the synthetic control method, we estimate the effects for 82 municipalities affected by HPP construction between 2002 and 2011. The average impact follows an inverted U-shape over a five-year horizon. The median impact in the medium run is positive but modest, with no effect on the composition of local economic activity. However, the estimated effects are highly heterogeneous. Five years after construction, the median impact on GDP growth rate is close to zero, while the 75th percentile of the treatment effects distribution is a 6.7 percentage points increase, and the 25th percentile is a 7.9 percentage points decrease. These results do not support the argument that large construction works unequivocally spur local development.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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