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Dams: Effects of Hydrological Infrastructure on Development

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  • Andrew Dillon
  • Ram Fishman

Abstract

Hydrological investments, particularly irrigation dams, have multiple potential benefits for economic development. Dams also have financial, environmental, and distributional impacts that can affect their benefits and costs. This article reviews the evidence on the impact of dams on economic development, focusing on the levels and variability of agricultural productivity, and its effect on poverty, health, electricity generation, and flood control. We also review the evidence on irrigation efficiency and collective action of dam maintenance. Throughout the discussion, we highlight the empirical challenges that restrict the body of causally interpretable impact estimates and areas in which the evidence is particularly thin. We conclude with a discussion of emerging issues pertaining to the long-term sustainability of dams’ impacts and suggest directions for future research.

Suggested Citation

  • Andrew Dillon & Ram Fishman, 2019. "Dams: Effects of Hydrological Infrastructure on Development," Annual Review of Resource Economics, Annual Reviews, vol. 11(1), pages 125-148, October.
    • Handle: RePEc:anr:reseco:v:11:y:2019:p:125-148
    DOI: 10.1146/annurev-resource-100518-093913
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    Cited by:

    1. Blakeslee, David & Dar, Aaditya & Fishman, Ram & Malik, Samreen & Pellegrina, Heitor S. & Bagavathinathan, Karan Singh, 2023. "Irrigation and the spatial pattern of local economic development in India," Journal of Development Economics, Elsevier, vol. 161(C).
    2. He, Xi, 2023. "Dams, cropland productivity, and economic development in China," China Economic Review, Elsevier, vol. 81(C).
    3. Mary, Sebastien J. & Stoler, Avraham & Shafiq, Sarah & Craven, Kyle, 2023. "Dams of Malaria," 2023 Annual Meeting, July 23-25, Washington D.C. 335448, Agricultural and Applied Economics Association.
    4. Maria Jones & Florence Kondylis & John Loeser & Jeremy Magruder, 2022. "Factor Market Failures and the Adoption of Irrigation in Rwanda," American Economic Review, American Economic Association, vol. 112(7), pages 2316-2352, July.
    5. Sebastien Mary & Kyle Craven & Avraham Stoler & Sarah Shafiq, 2023. "Revisiting the Impact of Dams on Malaria and Agriculture," Economies, MDPI, vol. 11(7), pages 1-19, June.
    6. Andrea J. Lund & David Lopez-Carr & Susanne H. Sokolow & Jason R. Rohr & Giulio A. De Leo, 2021. "Agricultural Innovations to Reduce the Health Impacts of Dams," Sustainability, MDPI, vol. 13(4), pages 1-8, February.

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