Economic Impact Assessment of Laos-China Hydropower Projects Using the Entropy Method

Authors

  • Ekkasanh Ekkasanh Sengthongkham Business School of Hohai University, Nanjing
  • Huang Dechun Business School of Hohai University
  • He Zhengqi Jiangsu Provincial Collaborative Innovation Center of World Water Valley and Water Ecological Civilization

Keywords:

International Hydropower Projects, Entropy Method, Nam Ou Hydropower Stations

Abstract

          Given that Laos is rich in water resources, it attracts many Chinese companies to invest in the construction of hydropower stations in Laos and has made great contributions to the economic development of Laos. Evaluating the economic impact of Lao-China hydropower projects is of importance for improving Laos' social and economic development. This quantitative study aimed to construct an evaluation system to evaluate economic impacts of the Lao-Chinese transnational hydropower projects and to describe key factors to provide theoretical support for improving its economic benefits.This article designed an Economic Impact Assessment (EIA) system of hydropower projects from three aspects: economic growth, economic structure, and economic quality, taking Laos' hydropower projects in the Nam Ou river basinas a sample. The data were analyzed by the entropy method to examine its impacts on the Lao economy. The results showed that the construction of cascade hydropower stations in the Nam Ou river basin has played a crucial role in enhancing Lao economic development. After the completion of the projects, Lao economic benefits have been significantly increased; the adjustment and optimization of the economic structure of hydropower projects area major force for economic development. Meanwhile, the unemployment rate has been reduced during the construction and operation stages. The urbanization rate and people’s income have also increased to a certain extent, which has also promoted economic development.

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Published

2021-11-04

How to Cite

Ekkasanh Sengthongkham, E. ., Dechun, H. ., & Zhengqi, H. . (2021). Economic Impact Assessment of Laos-China Hydropower Projects Using the Entropy Method. Journal for Developing the Social and Community, 8(2), 255–266. Retrieved from https://so03.tci-thaijo.org/index.php/rdirmu/article/view/250899

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Section

Research Articles