Research On The Externalities Of Hydropower Project

Hydropower has become an important way of relieving the tension of the energy situation and speeding up energy structure adjustment in China. However, the development of hydropower has been restricted by the problems of migration, ecology, and benefit sharing. The key is to establish a reasonable and scientific benefit sharing system, considering all input and output factors in its life cycle. Most of work so far has focused on the direct costs and benefits of hydropower projects, however the systematic identification and assessment of the externalities is seriously lacking. Thus, this paper identifies the hydropower project’s externalities with the Externality Theory, based on the analysis on input and output factors, chooses or designs a calculation method for each externality, and then establishes the externality evaluation model for the hydropower project. The results have theoretical and practical significance as it lays the foundation for the establishment of a scientific and reasonable benefit sharing system.First of all, Name generator is used to identify the system’s output factors, including include economic, social and environmental factors, which can be further divided into ten parts: power generation benefit, water supply benefit, tourism benefit, aquaculture benefit, flood control benefit, navigation benefit, public benefit, constructed wetlands effect, greenhouse gas(GHG) emission reduction benefit and improvement of water quality. Combining with the existing research on input factors, we finally come up with an inputs-outputs elements list of the hydropower project.Second, analyze the input and output factors with the Externality Theory, and identifies externalities of the hydropower project, the result shows that externalities of the hydropower project consist of hydropower resource, land intergenerational loss, invisible loss, gird benefit, indirect tourism benefit, flood control benefit, navigation benefit, public benefit and environmental impacts, and finally gained the externality analysis model of the hydropower project.Then, explore the quantify methods of the identified factors based on the externality analysis model. As for those factors with mature quantify methods, make a summary and assessment of the methods. As with those factors without mature quantify methods, explore and establish scientific and reasonable expression of currency based on previous research. Finally, we establish the externality estimation model of the hydropower project.Finally, taking the example of the Three Gorges Project, the externality estimation model of the hydropower project is verified. Calculation result shows that: the hydropower project consists of externalities that cannot be ignored; the establishment of a scientific and reasonable benefit sharing system is urgently required.