Abstract

Abstract The Grand Ethiopian Renaissance Dam (GERD) on the Nile is expected to influence many ecosystem services, such as flood regulation, hydro-electricity production, food supply, and habitat provision, among others. Understanding these impacts (positive and negative) requires a comprehensive evaluation framework. This study develops and applies an integrated simulation framework for assessing the impacts of the GERD on Sudan, focusing on the simultaneous economywide effects of riverine flood hazards, irrigation water supply, hydropower generation, and floodplain-dependent industries, namely traditional fired clay brick production. The simulation framework incorporates three models: a river infrastructure system model, a flood model, and a Computable General Equilibrium Model. Results indicate positive impacts for hydropower generation and flood control, marginal benefits for water supply to existing irrigation, and negative consequences for brick production and the construction sector. Assuming that the GERD starts its long-term operation in 2025, we find an overall positive economic impact on Sudan’s Gross Domestic Product in 2025, with an increase of up to just over 0.1%, subject to river flow conditions. Recognizing the differences in impacts across sectors and income groups, the study emphasizes the need for interventions that ameliorate negative effects. While the study captures several impacts, other effects on the environment, recession agriculture, and soil fertility require further investigation. Still, our findings underscore the importance of adopting an integrated simulation approach to dam evaluation, acknowledging the interconnected nature of water and related sectors in national economies.

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