Impact of Hydropower Dam on Household Water Security: Evidence from Amerti-Neshe Reservoir in Northwestern Ethiopia

Understanding the impact of hydropower dam construction on adjacent local community water security is critical for identifying factors that influence water security as well as improving water supplies in rural areas. This study analyzes the impact of hydropower dam construction on the water security of households around the Amerti and Neshe dams in Northwestern Ethiopia. A multistage sampling procedure was followed to select 485 households (268 affected and 217 non-affected) for our analysis. A principal component analysis was applied to five dimensions of water security (access, utilization, affordability, quality, and quantity) and then the households water security index (HWSI) was constructed. An endogenous switching regression model was applied to analyze the impact of dam construction on the water security status at the household level in the study area.  Our findings revealed that there is a significant mean difference in HWSI between affected and non-affected households regarding water access and quality. The average treatment effect indicates that the construction of the two dams has had a negative impact on household water security, reducing it by 12%. As a result, government and other stakeholders should consider relocating affected households to better areas in order to mitigate such negative effects on household water security.