The
construction of the Three Gorges Dam on the Yangtze River has a number
of positive and negative economic
impacts for the Three Gorges area and for China. A cost-benefit analysis
was done to determine these impacts.
Since the Yangtze River has a tendency to flood frequently, measures
have been taken in the past to lessen the impacts on the area. Flooding
in the past has cost millions in damages to homes, land, and other property.
With the building of the Three Gorges Dam, the flood frequency is increased
to one-hundred years, thus lessening the impact floods with have on the
economy. The dam will also provide energy for much of China. Hydroelectric
power is a self-sustaining, renewable, clean energy resource. According
to the Chinese government, the dam will have paid off all its debts by
the year 2012, a mere three years after completion is scheduled.
Large
cargo ship traveling upstream Yangtze River. Courtesy of Edwin Moise.
The creation of the reservoir has a number of economic
values. It will aid in boosting agriculture, since the reservoir will
hold more water for irrigation. It also will provide the surrounding
areas with a stable source of drinking water. With a final depth of 525
ft, larger ships can be used to transport products up and down the Yangtze
River. This increased navigability will increase the economy in the area.
Trade is estimated to increase five times in the Central China. Transportation
costs are expected to reduce by 35-37%. This enhanced navigability is
furthered by the shiplocks at the Three Gorges Dam. They are big enough
to allow twelve large commercial ships to travel over the dam at once.
China
will lose money due to the inundation of fertile farming land. The
100,000 acres that will be flooded accounts for 10%
of the grain supply, 50% of which is rice. To make up for this loss,
China will have to import more grain and rice from other countries. Resettlement
of the people living in the reservoir area includes the switching of
agricultural commodities. The new land is less fertile, and therefore
the growing of grain and rice will be harder and more expensive. Instead,
value added products, such as citrus fruits, are more viable to grow.
However, since these farmers may be unfamiliar with growth citrus fruits
or other products, production on these new farms may be slower and yield
less economic trade. The people who are not granted land to farm will
be trained to work in cities and towns. The majority of the people living
in the reservoir area are uneducated, thus making this transition more
difficult. who are not granted land to farm will
be trained to work in cities and towns. The majority of the people living
in the reservoir area are uneducated, thus making this transition more
difficult.
Fisherman
in front of Three Gorges Dam. Courtesy of European Space Agency.
The Yangtze River contains 300 different fish species.
It is argued that the construction of the dam will prevent fish from
spawning upstream, thus diminishing population sizes. This would have
a negative impact on the local fishing industry and also on the livelihoods
of fisherman who depend on it. It has been noted that fish are now moving
upstream on tributaries to the Yangtze River to spawn. The government
also insists that the creation of the reservoir will make room for more
fish and so increase fish population in that way. Only the future will
be able to tell how the dam will affect local fisheries.
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