JEL Classification: H84; O18; R11; Q25; Q54. | DOI: https://doi.org/10.31521/modecon.V51(2025)-11 |
Oleksandr Zhebko, postgraduate student, Mykolaiv National Agrarian University, Mykolaiv, Ukraine
ORCID ID: 0009-0009-1604-5952
e-mail: zhebko@mnau.edu.ua
Olena Livandovska, postgraduate student, Mykolaiv National Agrarian University, Mykolaiv, Ukraine
ORCID ID: 0000-0003-2676-8635
e-mail: livandovska@mnau.edu.ua
Economic consequences of the destruction of the Kakhovka Hydroelectric Power Plant and ways of its restoration
Abstract. Introduction. In June 2023, the destruction of the Kakhovka Hydroelectric Power Plant (HPP) led to one of the largest ecological and economic disasters in modern Ukrainian history. The facility had played a key role in regulating water flows of the Dnipro River, ensuring energy generation, irrigation, inland water transport, and water supply to southern regions. The collapse of the Kakhovka HPP resulted in significant losses for agriculture, industry, infrastructure, and the environment, disrupting regional stability and national energy security.
Purpose. This study aims to determine and analyze the economic consequences of the Kakhovka Hydroelectric Power Plant’s destruction and assess potential scenarios for its restoration and reconstruction.
Results. The study provides a comprehensive analysis of the direct and indirect economic losses resulting from the destruction of the Kakhovka Hydroelectric Power Plant, totaling over $14 billion. The analysis identifies the sectors most severely impacted, including agriculture, energy, logistics, water supply, and infrastructure. It emphasizes the extent to which regional economic systems and national food security have been disrupted. Agricultural losses alone, due to the loss of irrigation across over 300,000 hectares, are estimated at nearly $1.89 billion annually. These losses will have significant long-term impacts on crop yields, export potential, and employment.
To address the disaster’s multifaceted consequences, the article proposes three potential recovery scenarios: (1) complete reconstruction of the Kakhovka HPP and its reservoir, (2) development of decentralized, localized water supply and irrigation systems using alternative technologies, and (3) a hybrid model combining limited restoration of central infrastructure with decentralized, adaptive systems. Each scenario is examined in terms of technical feasibility, financial investment requirements, implementation timeframes, ecological implications, and strategic benefits.
Conclusions. The research confirms the necessity of an integrated, multidisciplinary approach to reconstruction that combines technical, economic, environmental, and social perspectives. The research also emphasizes the importance of international support, sustainable water management strategies, and the involvement of local communities in decision-making processes to ensure the region’s resilience in the postwar period.
Keywords: Kakhovka HPP; economic consequences; recovery; sustainable development; food security; agricultural sector; reconstruction strategy.
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Received: 25 May 2025
How to quote this article? |
Zhebko O., Livandovska O. (2025). Economic consequences of the destruction of the Kakhovka Hydroelectric Power Plant and ways of its restoration. Modern Economics, 51(2025), 97-103. DOI: https://doi.org/10.31521/modecon.V51(2025)-11. |