An assessment of the socioeconomic externalities of hydropower plants in Brazil

Hydropower plants (HPPs) have played a key role in the Brazilian electric sector for over a century. As the different options for the generation of electricity are being increasingly scrutinized in terms of their sustain ability, the assessment of the social, economic and environmental impacts has become a strategic factor to support investment decisions geared to expand the power supply. In this study, the construction and operation of a large group of Brazilian HPPs with over 100 MW of installed power was assessed based on the econometric analyses of 28 municipal indicators related to social, economic and environmental issues. Despite the broad variety of indicators analyzed, some environmental interferences typically attributed to HPPs such as a reduction in biodiversity and the interruption of fish migration routes were not assessed due to the lack of indicators. Overall, the study shows that the construction and operation of HPPs benefits mainly the economic activities. On the other hand, the indicators related to public health and safety, including the incidence of water-borne diseases and tropical parasitosis, bear no relation with the analyzed processes, except for the human fertility factor. In terms of Education, one of the indicators declined both during construction and operation stage.