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Do China-financed dams in Sub-Saharan Africa improve the region's social welfare? A case study of the impacts of Ghana's Bui Dam

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  • Tang, Keyi
  • Shen, Yingjiao

Abstract

China has become an increasingly important financier of energy infrastructure development in the Global South, especially hydropower projects. Despite an increase in investigations on Chinese models of infrastructure financing in these regions, there is a lack of empirical research on the impacts of the China-financed infrastructure. Using data from Johns Hopkins SAIS CARI China-Africa Loan Database and the Demographic and Health Survey (DHS) Program Database, we estimate the impacts of the China-financed Bui Dam in Ghana. We use two difference-in-differences models to identify change of the likelihood to have access to electricity, and to own several electric appliances among over 29,000 local households receiving electricity transmitted from Bui Dam. We found that after the Bui Dam's completion, the likelihood for households living in the treatment regions having access to electricity increased by about 4 percent. However, our models also show that urban households witness a much higher increase in their ownership of various electric appliances, suggesting that the Bui Dam's improvement of electrification may be predominant in the urban and rich households.

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  • Tang, Keyi & Shen, Yingjiao, 2020. "Do China-financed dams in Sub-Saharan Africa improve the region's social welfare? A case study of the impacts of Ghana's Bui Dam," Energy Policy, Elsevier, vol. 136(C).
    • Handle: RePEc:eee:enepol:v:136:y:2020:i:c:s0301421519306494
    DOI: 10.1016/j.enpol.2019.111062
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    1. Kwabena Asiama & Monica Lengoiboni & Paul Van der Molen, 2017. "In the Land of the Dammed: Assessing Governance in Resettlement of Ghana’s Bui Dam Project," Land, MDPI, vol. 6(4), pages 1-24, November.
    2. Peter Bilson Obour & Kwadwo Owusu & Edmond Akwasi Agyeman & Albert Ahenkan & Àngel Navarro Madrid, 2016. "The impacts of dams on local livelihoods: a study of the Bui Hydroelectric Project in Ghana," International Journal of Water Resources Development, Taylor & Francis Journals, vol. 32(2), pages 286-300, March.
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    4. Kwadwo Owusu & Paul W. K. Yankson & Alex B. Asiedu & Peter B. Obour, 2017. "Resource utilization conflict in downstream non‐resettled communities of the Bui Dam in Ghana," Natural Resources Forum, Blackwell Publishing, vol. 41(4), pages 234-243, November.
    5. Frauke Urban & Johan Nordensvard & Giuseppina Siciliano & Bingqin Li, 2015. "Chinese Overseas Hydropower Dams and Social Sustainability: The Bui Dam in Ghana and the Kamchay Dam in Cambodia," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 2(3), pages 573-589, September.
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    7. Frauke Urban & Johan Nordensvard & Giuseppina Siciliano & Bingqin Li, 2015. "Chinese Overseas Hydropower Dams and Social Sustainability: The Bui Dam in Ghana and the Kamchay Dam in Cambodia," Asia and the Pacific Policy Studies 201543, Crawford School of Public Policy, The Australian National University.
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    3. Xiaoting Yang & Jie Yang & Ning An, 2022. "Social Networks, Social Responsibility, and Sustainable Development of Chinese Corporations in Africa," Sustainability, MDPI, vol. 14(3), pages 1-13, January.
    4. Dreher, Axel & Fuchs, Andreas & Hodler, Roland & Parks, Bradley C. & Raschky, Paul A. & Tierney, Michael J., 2021. "Is Favoritism a Threat to Chinese Aid Effectiveness? A Subnational Analysis of Chinese Development Projects," World Development, Elsevier, vol. 139(C).
    5. Mihalyi,David & Hwang,Jyhjong & Rivetti,Diego & Cust,James Frederick, 2022. "Resource-Backed Loans in Sub-Saharan Africa," Policy Research Working Paper Series 9923, The World Bank.

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