Kelsey, J; Kadivar, S; (2020) Stakeholder-driven design and appraisal in hydroelectric projects: a participatory gaming approach. (CRANEC - Working Papers del Centro di Ricerche in Analisi economica e sviluppo economico internazionale 05/20). Università Cattolica del Sacro Cuore, Centro di Ricerche in Analisi economica e sviluppo economico internazionale (CRANEC): Milan, Italy.

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Abstract

Hydropower is an important source of renewable energy, but large hydropower multipurpose river basin projects can displace communities and have serious adverse effects on the local environment and livelihoods. The Sardar Sarovar Dam in India and other similar projects have provoked local and international protest culminating in the temporary withdrawal of the World Bank from large hydropower project finance. It would appear to be a better option for powerful stakeholders to engage seriously with weaker ones. As well as ethical concerns, economic theory would suggest that there is a flawed basis for costbenefit analysis which omits input from local stakeholders, particularly that of indigenous peoples who also have a role to play in project design. It is argued that the Kaldor-Hicks criterion should be abandoned and that decisions should be made based on a multi-criteria analysis of which cost-benefit analysis is but one component. It is suggested that full stakeholder engagement could best be conducted through participatory role-playing games which are being increasingly found in use as a means of exploring and resolving stakeholder conflicts. Such use is still relatively recent and safeguards such as a neutral moderator, advocates and ethical gaming rules are required to protect weaker and non-expert stakeholders.

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