Abstract
In addition to solving the problem of water shortage for irrigation, energy and consumption, thepolicy of building large dam is also expected to improve population-welfare. However, previousstudies suggest that people living near dams have less benefit from the existence of large dam. Thisstudy aims to provide empirical evidence the effect of large dam development on welfare tohousehold living in sub-districts around large dam placement using National Socio-EconomicSurvey (SUSENAS) data in 2013-2018 from Central Bureau of Statistics and spatial large dam datain Indonesia. Estimated results indicate that addition large dam tend to be negatively correlated by2.4-3.1 % with household consumption implying a tendency of decreasing welfare in localhouseholds. Estimated findings using Indonesia Family Life Survey (IFLS) in 2007 and 2014 shownegative correlation likely to be caused by lower agricultural productivity and work activity. Thisresult show there are economic agents who suffer from large water - infrastructure especiallyhouseholds living in sub-districts close to the dam.
Highlights
The For many countries, large dams have become an ideal infrastructure for supporting water needs either consumption, irrigation or hydropower (Chen et al, 2016)
In order to see the mechanism of the agricultural productivity and work activity in impact of large dams on the household - household that living closer to the dams based welfare, this study explores effect of large on our estimates using Indonesia Family Life Survey (IFLS) data
This study uses dataset 6The sample of households in IFLS 4 was 13,500 from the Indonesia Family Life Survey (IFLS) households, while in IFLS 5, there were 15,900 households in 4 and 5 waves to obtain additional information to see the effects of dam that were selected based on the location of the households per district
Summary
The For many countries, large dams have become an ideal infrastructure for supporting water needs either consumption, irrigation or hydropower (Chen et al, 2016). Increased economic activity during construction at the site where the dam was constructed occurred resulting in increased job opportunities and shifts in local labor market, even though the household did not participate in agriculture (Mettetal, 2019). This mechanism affects households who living close to the dam and surrounding region’s potential for economic well-being differences. Even the general concept show the development of agricultural infrastructure will have a positive impact on output. The distribution of economic output may vary across regions
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