Three Applications Of Dams In Nepal, Malaysia,
And Turkey
Author(s)
R. Morimoto
Abstract
This paper empirically applies cost benefit analysis to much debated hydropower
projects in Malaysia, Nepal and Turkey. The study selects an interesting mixture
of cases, as main characteristics of each dam, geographical locations of each
dam, and the development stage of each country differ. The study brings together
all the major issues attached to each hydropower project and estimates the
quantitative impacts of these controversial dams. The cost benefit analysis model
in this study takes into account of premature decommissioning of dams and the
correlation between the parameters of generation capacity, total construction cost
and construction period. The mean cumulative net present value at the 100th year
of the analysis with the 5% discount rate for Sharada-Babai dam in Nepal shows
a positive figure, whereas the mean cumulative net present value after 100 years
for both Bakun dam in Malaysia and Ilisu dam in Turkey are negative. The
mean value of the cumulative net present value for Sharada-Babai becomes
negative when the pure rate of time preference is larger than 6%; for Bakun and
Ilisu, converge to zero as pure rate of time preference becomes larger. The
sensitivity analysis shows the dominant positive impact of the generation
capacity parameter on net present value for Bakun; and the parameter expressing
initial expected increase in economic output for Sharada-Babai and Ilisu.
Keywords: Bakun, cost benefit analysis, hydro power development, Ilisu, net
present value, sensitivity analysis, Sharada-Babai.
1 Introduction
The serious negative effects of large dams have been widely discussed, and the
roles of large dams have been questioned, over the past two decades (WCD [1]).
However, there are still numerous plans to build massive dams worldwide,
Keywords
Bakun, cost benefit analysis, hydro power development, Ilisu, net
present value, sensitivity analysis, Sharada-Babai.
Related Book
Other papers in this volume
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