Pakistan, Nov. 4 -- There's a widespread belief that electricity generated from large dams is both clean (carbon-free) and inexpensive. However, this perception is far from reality. Not only do these dams have a significant environmental impact, but their associated carbon footprint also challenges their "clean" label. Moreover, the electricity produced often turns out to be very expensive, especially after factoring in the interest on loans typically borrowed from International Financial Institutions to finance their construction.
Take the Neelum Jhelum Hydroelectric Project as an example. In 2007, the initial feasibility study estimated the cost at $945 million. Yet, after a prolonged period of ten years, the final cost ballooned to $32....