Dams and Rural Conflict: Evidence from Brazil’s Hydropower Expansion

Raphael Corbi, Chiara Falco and Luca J. Uberti

No 387608, FEEM Working Papers from Fondazione Eni Enrico Mattei (FEEM)

Abstract: We estimate the impact of infrastructure investment on conflict using 163 hydroelectric dams in Brazil (2002–2022). Leveraging the staggered rollout of construction in a difference-in-differences framework, we find that dams trigger sharp, temporary surges in land invasions, water disputes, and homicides. These effects peak during construction and dissipate upon operation, suggesting they stem from the displacement process rather than the public good itself. Crucially, conflict is mediated by local institutions: violence occurs only where property rights are weak and displacement affects vulnerable smallholders. Our results demonstrate that without effective compensation, state-led modernization generates destabilizing redistributive shocks.

Keywords: Agricultural and Food Policy; Dairy Farming; Environmental Economics and Policy (search for similar items in EconPapers)
Pages: 44
Date: 2026-01-09
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Persistent link: https://EconPapers.repec.org/RePEc:ags:feemwp:387608

DOI: 10.22004/ag.econ.387608

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