Cost Benefit Analysis for the Three Gorges Dam
Cost Benefit Analysis for the Three Gorges Dam
William Zhi
Introduction
The Three Gorges Dam (TGD) and associated infrastructure is the largest integrated water project built in the history of the world. It has also been one of the most controversial due to its massive environmental, economic, and social impacts.
Private costs: * Construction costs of the power station and transmission facilities --64.613 billion Yuan up to 2006 (source: "International Water Power and Dam Construction". Waterpowermagazine.com. 2007-01-10) * Cost of relocating residents --1.4 million residents relocated , costing 68.557 billion yuan(source: "国家重大技术装备". Chinaneast.xinhuanet.com. 2009-01-11. )
* Operation and maintenance cost * Financing the project
--15.195 billion yuan on financing(source: ^ "国家重大技术装备". Chinaneast.xinhuanet.com. 2009-01-11)
External costs: * Lost land from the reservoir created * Loss of archaeological sites * Damage to the environment, such as the destruction of the habitat of endangered fish species. * Decline in fish catch downstream
Private benefits: * Power generation revenue
External benefits: * Economic growth (avoided economic losses from power shortages)
-- It supports about 1.7% of electricity demand in China in the year of 2011, when the Chinese electricity demand reached 4692.8 TWh.(source: "能源局:2011年全社会用电量累计达46928亿千瓦时") * Avoided damages from air pollution (from coal) * Flood control * Navigation improvement
Monetary values of costs and benefits * A total of 184.9 billion yuan have been spent on the project(private costs)
Source: Reuters * A total cost of estimated 254.2 billion yuan (source: Reuters) * It is estimated that the construction cost will be recovered when the dam has generated 1,000 terawatt-hours (3,600 PJ) of electricity. Full cost recovery is expected to occur ten years after the dam starts full operation.
(source: ^ a b
William Zhi
Introduction
The Three Gorges Dam (TGD) and associated infrastructure is the largest integrated water project built in the history of the world. It has also been one of the most controversial due to its massive environmental, economic, and social impacts.
Private costs: * Construction costs of the power station and transmission facilities --64.613 billion Yuan up to 2006 (source: "International Water Power and Dam Construction". Waterpowermagazine.com. 2007-01-10) * Cost of relocating residents --1.4 million residents relocated , costing 68.557 billion yuan(source: "国家重大技术装备". Chinaneast.xinhuanet.com. 2009-01-11. )
* Operation and maintenance cost * Financing the project
--15.195 billion yuan on financing(source: ^ "国家重大技术装备". Chinaneast.xinhuanet.com. 2009-01-11)
External costs: * Lost land from the reservoir created * Loss of archaeological sites * Damage to the environment, such as the destruction of the habitat of endangered fish species. * Decline in fish catch downstream
Private benefits: * Power generation revenue
External benefits: * Economic growth (avoided economic losses from power shortages)
-- It supports about 1.7% of electricity demand in China in the year of 2011, when the Chinese electricity demand reached 4692.8 TWh.(source: "能源局:2011年全社会用电量累计达46928亿千瓦时") * Avoided damages from air pollution (from coal) * Flood control * Navigation improvement
Monetary values of costs and benefits * A total of 184.9 billion yuan have been spent on the project(private costs)
Source: Reuters * A total cost of estimated 254.2 billion yuan (source: Reuters) * It is estimated that the construction cost will be recovered when the dam has generated 1,000 terawatt-hours (3,600 PJ) of electricity. Full cost recovery is expected to occur ten years after the dam starts full operation.
(source: ^ a b