Issue

Cost-benefit analysis is, and has been for a number of years, a decision support tool used in the economic appraisal of hydropower projects.   Risks with the absence, or limited application, of cost-benefit analysis can include:

• project cost over-runs;
• projects not delivering their stated benefits;
• social and environmental impacts either not or only indirectly accounted for;
• multiplier effects on a regional or local economy not taken into account; and
• beneficiaries and adversely affected parties not clearly identified.