Impact Assessment of Hydroelectric Facilities on Regional Economic Development

As China's economy continues its rapid growth, hydropower station construction has emerged as a crucial pathway for converting regional resource advantages into economic benefits. Drawing on regional economic development theory and the characteristics of the hydropower industry, this study examines the Dachaoshan Hydropower Station as a case study. Through multiple research methodologies including case analysis and literature review, we analyze the mechanisms through which hydroelectric facilities influence local economic development from both direct and indirect dimensions. Our findings reveal that during the construction phase, hydropower stations effectively stimulate the development of local construction, building materials, and related industries through large-scale investment, while creating substantial temporary employment opportunities. During the operational phase, they provide stable employment positions and considerable tax revenue contributions, becoming an essential pillar of local government finances. From an indirect perspective, hydropower station construction drives the extension and development of related industries, optimizes regional infrastructure conditions, promotes green upgrading of industrial structures, and achieves sustainable regional economic development. The study also addresses the negative impacts on river ecosystems caused by hydroelectric facility construction and human control, as well as social issues related to resettlement. Our comprehensive assessment demonstrates that hydroelectric facilities significantly promote regional economic and social development, with positive effects substantially outweighing negative impacts. However, establishing comprehensive ecological compensation mechanisms and resettlement security systems remains necessary to achieve an organic unity of economic, ecological, and social benefits.

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Publication Details

Journal
Advances in Economics Management and Political Sciences
Published
2025-10-14
DOI
https://doi.org/10.54254/2754-1169/2025.gl27656
Primary Topic
Industrial Engineering and Technologies
Type
article
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article

Impact Assessment of Hydroelectric Facilities on Regional Economic Development

Runtian Li
Advances in Economics Management and Political Sciences
Industrial Engineering and Technologies
article

Impact Assessment of Hydroelectric Facilities on Regional Economic Development

Runtian Li
article en

Abstract

As China's economy continues its rapid growth, hydropower station construction has emerged as a crucial pathway for converting regional resource advantages into economic benefits. Drawing on regional economic development theory and the characteristics of the hydropower industry, this study examines the Dachaoshan Hydropower Station as a case study. Through multiple research methodologies including case analysis and literature review, we analyze the mechanisms through which hydroelectric facilities influence local economic development from both direct and indirect dimensions. Our findings reveal that during the construction phase, hydropower stations effectively stimulate the development of local construction, building materials, and related industries through large-scale investment, while creating substantial temporary employment opportunities. During the operational phase, they provide stable employment positions and considerable tax revenue contributions, becoming an essential pillar of local government finances. From an indirect perspective, hydropower station construction drives the extension and development of related industries, optimizes regional infrastructure conditions, promotes green upgrading of industrial structures, and achieves sustainable regional economic development. The study also addresses the negative impacts on river ecosystems caused by hydroelectric facility construction and human control, as well as social issues related to resettlement. Our comprehensive assessment demonstrates that hydroelectric facilities significantly promote regional economic and social development, with positive effects substantially outweighing negative impacts. However, establishing comprehensive ecological compensation mechanisms and resettlement security systems remains necessary to achieve an organic unity of economic, ecological, and social benefits.

Advances in Economics Management and Political SciencesVol. 222(1)
Thomas University (US)
Openalex Percentile: Top 70%
Industrial Engineering and Technologies
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