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{"id":20481,"date":"2025-07-30T14:45:09","date_gmt":"2025-07-30T11:45:09","guid":{"rendered":"https:\/\/modecon.mnau.edu.ua\/?p=20481"},"modified":"2025-07-31T08:50:32","modified_gmt":"2025-07-31T05:50:32","slug":"economic-consequences-of-the-destruction","status":"publish","type":"post","link":"https:\/\/modecon.mnau.edu.ua\/en\/economic-consequences-of-the-destruction\/","title":{"rendered":"Zhebko O., Livandovska O. Economic consequences of the destruction of the Kakhovka Hydroelectric Power Plant and ways of its restoration"},"content":{"rendered":"<section class=\"wpb-content-wrapper\"><p>[vc_row][vc_column][vc_column_text]<\/p>\n<table style=\"height: auto; border: solid 1px white!important;\" width=\"100%\">\n<tbody>\n<tr>\n<td style=\"border: solid 1px white!important;\"><strong>JEL Classification:<\/strong> <i><span style=\"font-weight: 400;\">H84; O18; R11; Q25; Q54.<\/span><\/i><\/td>\n<td style=\"text-align: right; border: solid 1px white!important;\"><b>DOI<\/b><span style=\"font-weight: 400;\">: <a href=\"https:\/\/doi.org\/10.31521\/modecon.V51(2025)-11\" target=\"_blank\" rel=\"nofollow noopener\">https:\/\/doi.org\/10.31521\/modecon.V51(2025)-11<\/a><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>[\/vc_column_text][vc_column_text]<b>Oleksandr Zhebko, <\/b><span style=\"font-weight: 400;\">postgraduate student, Mykolaiv National Agrarian University, Mykolaiv, Ukraine<\/span><\/p>\n<p><strong>ORCID ID:<\/strong> <a href=\"https:\/\/orcid.org\/0009-0009-1604-5952\"><span style=\"font-weight: 400;\">0009-0009-1604-5952<\/span><\/a><br \/>\n<strong>e-mail: <\/strong><a href=\"mailto:zhebko@mnau.edu.ua\"><span style=\"font-weight: 400;\">zhebko@mnau.edu.ua<\/span><\/a><\/p>\n<p><b>Olena Livandovska, <\/b><span style=\"font-weight: 400;\">postgraduate student, Mykolaiv National Agrarian University, Mykolaiv, Ukraine<\/span><\/p>\n<p><strong>ORCID ID:<\/strong> <a href=\"https:\/\/orcid.org\/0000-0003-2676-8635\"><span style=\"font-weight: 400;\">0000-0003-2676-8635<\/span><\/a><br \/>\n<strong>e-mail: <\/strong><a href=\"mailto:livandovska@mnau.edu.ua\"><span style=\"font-weight: 400;\">livandovska@mnau.edu.ua<\/span><\/a><\/p>\n<p>&nbsp;<\/p>\n<h2 style=\"text-align: center;\"><b>Economic consequences of the destruction of the Kakhovka Hydroelectric Power Plant and ways of its restoration<\/b><\/h2>\n<p><b><i>Abstract. Introduction<\/i><\/b><i><span style=\"font-weight: 400;\">.\u00a0<\/span><\/i><i><span style=\"font-weight: 400;\">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.<\/span><\/i><\/p>\n<p><b><i>Purpose<\/i><\/b><i><span style=\"font-weight: 400;\">.<\/span><\/i> <i><span style=\"font-weight: 400;\">This study aims to determine and analyze the economic consequences of the Kakhovka Hydroelectric Power Plant&#8217;s destruction and assess potential scenarios for its restoration and reconstruction.<\/span><\/i><\/p>\n<p><b><i>Results<\/i><\/b><i><span style=\"font-weight: 400;\">.<\/span><\/i> <i><span style=\"font-weight: 400;\">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.<\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">To address the disaster&#8217;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.<\/span><\/i><\/p>\n<p><b><i>Conclusions<\/i><\/b><i><span style=\"font-weight: 400;\">.<\/span><\/i> <i><span style=\"font-weight: 400;\">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&#8217;s resilience in the postwar period.<\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\"><b>Keywords:<\/b> Kakhovka HPP; economic consequences; recovery; sustainable development; food security; agricultural sector; reconstruction strategy.<\/span><\/i><\/p>\n<p style=\"text-align: center;\"><strong><b>References<\/b>:<\/strong><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Center for Economic Strategy. (2023, June 8). <\/span><i><span style=\"font-weight: 400;\">Economic consequences of the dam destruction at the Kakhovka HPP<\/span><\/i><span style=\"font-weight: 400;\">. https:\/\/ces.org.ua\/en\/economic-consequences-kakhovkahps-destruction.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">VoxEU CEPR. (2023, Jul 10). <\/span><i><span style=\"font-weight: 400;\">The cost of the Kakhovka dam destruction<\/span><\/i><span style=\"font-weight: 400;\">. https:\/\/cepr.org\/voxeu\/columns\/cost-kakhovka-dam-destruction.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Holota, M. M. (2024). Transformation of the socio-economic landscape of Ukraine under the influence of war: Analysis of key macroeconomic indicators. <\/span><i><span style=\"font-weight: 400;\">Problemy Suchasnykh Transformatsii. Seriya: Ekonomika ta Upravlinnia<\/span><\/i><span style=\"font-weight: 400;\">, 12, 1-10. https:\/\/doi.org\/10.54929\/2786-5738-2024-12-07-01.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Stefanyshyn, D.\u00a0V., Korbutyak, V.\u00a0M., &amp; Benatov, D.\u00a0E.\u00a0 (Eds.). (2024, June 5). <\/span><i><span style=\"font-weight: 400;\">On the post-war restoration of the Kakhovka hydro complex<\/span><\/i><span style=\"font-weight: 400;\">. [Conference presentation abstract]. International scientific and practical conference \u00abEcology. Human. Society\u00bb. 273-279. https:\/\/doi.org\/10.20535\/EHS2710-3315.2024.305265.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">United Nations in Ukraine. (2023, October 17). <\/span><i><span style=\"font-weight: 400;\">Kakhovka Dam destruction inflicted $14 billion damage and loss on Ukraine: Government of Ukraine<\/span><\/i><span style=\"font-weight: 400;\">. https:\/\/ukraine.un.org\/en\/249742-kakhovka-dam-destruction-inflicted-us14-billion-damage-and-loss-ukraine-government-ukraine.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Olenenko, A. (2023, July 6). Cyclical history: The Kakhovka dam disaster. <\/span><i><span style=\"font-weight: 400;\">Politika<\/span><\/i><span style=\"font-weight: 400;\">. https:\/\/www.politika.io\/en\/article\/cyclical-history-the-kakhovka-dam-disaster.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Market Operator SE. (2023). <\/span><i><span style=\"font-weight: 400;\">DAM indices and weighted average prices in 2023<\/span><\/i><span style=\"font-weight: 400;\">. https:\/\/www.oree.com.ua\/index.php\/indexes.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ukrhydroenergo (2019, December 18). <\/span><i><span style=\"font-weight: 400;\">Kakhovka HPP: sustainable development and regional support.<\/span><\/i><span style=\"font-weight: 400;\"> https:\/\/uhe.gov.ua\/media_tsentr\/novyny\/kakhovska-ges-stiykiy-rozvitok-ta-pidtrimka-regionu.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Voshchynskyi, K. V. (2023). Kakhovka HPP named after P. Neporozhnyi. <\/span><i><span style=\"font-weight: 400;\">Encyclopedia of Modern Ukraine<\/span><\/i><span style=\"font-weight: 400;\">. https:\/\/esu.com.ua\/article-10826.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Truth Hounds. (2024). <\/span><i><span style=\"font-weight: 400;\">Flooded by war: Research on the destruction of the Kakhovka dam and its consequences for the ecosystem, farmers, civil life and international justice. <\/span><\/i><span style=\"font-weight: 400;\">https:\/\/truth-hounds.org\/wp-content\/uploads\/2024\/09\/zatopleno-vijnoyu-doslidzhennya-rujnuvannya-kahovskoyi-grebli-ta-jogo-naslidky-dlya-ekosystemy-agrariyiv-czyvilnogo-zhyttya-ta-mizhnarodnogo-pravosuddya.pdf.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Kolodiezhna, V.\u00a0V., &amp; Vasyluk, O.\u00a0V. (Eds.). (2025). <\/span><i><span style=\"font-weight: 400;\">Znyshchennia Kakhovskoho vodoshovyshcha: naslidky dlia dovkillia<\/span><\/i><span style=\"font-weight: 400;\">. Chernivtsi : Druk Art. https:\/\/uncg.org.ua\/wp-content\/uploads\/2025\/02\/znyshhennya-kahovskogo-vodoshovyshha-naslidky-dlya-dovkillya-2025.pdf.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Lavrinok, M. (2023). Government payments after the Kakhovka HPP explosion. <\/span><i><span style=\"font-weight: 400;\">Ukrainian Helsinki Human Rights Union<\/span><\/i><span style=\"font-weight: 400;\">. https:\/\/www.helsinki.org.ua\/articles\/vyplaty-pislia-pidryvu-kakhovskoi-hes-chy-dopomozhe-rishennia-uriadu-postrazhdalym.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Radio Svoboda. (2023). <\/span><i><span style=\"font-weight: 400;\">Homes destroyed by water and Russian missiles: how to get compensation for damaged housing<\/span><\/i><span style=\"font-weight: 400;\">. https:\/\/www.radiosvoboda.org\/a\/novyny-pryazovya-zruynovane-zhytlo-yak-otrymaty-kompensatsiyu\/32490420.html.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">KSE Institute. (2024). <\/span><i><span style=\"font-weight: 400;\">Report on direct infrastructure losses from destruction due to Russian aggression as of early 2024<\/span><\/i><span style=\"font-weight: 400;\">. https:\/\/kse.ua\/wp-content\/uploads\/2024\/04\/01.01.24_Damages_Report.pdf.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Accounting Chamber of Ukraine. (2023). <\/span><i><span style=\"font-weight: 400;\">On the consideration of the report on the analysis of the current state regarding the assessment of socio-economic losses in the agricultural sector<\/span><\/i><span style=\"font-weight: 400;\">. \u211615-2. URL: https:\/\/rp.gov.ua\/upload-files\/Activity\/Collegium\/2023\/15-2_2023\/Zvit_15-2_2023.pdf.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Cabinet of Ministers of Ukraine. (2023). <\/span><i><span style=\"font-weight: 400;\">On the implementation of the experimental project \u00abConstruction of the Kakhovka hydro complex on the Dnipro River. Reconstruction after the destruction of the Kakhovska HPP and ensuring the stable operation of the Dnipro HPP during the reconstruction period\u00bb.<\/span><\/i><span style=\"font-weight: 400;\"> \u2116730.\u00a0 https:\/\/zakon.rada.gov.ua\/laws\/show\/730-2023-%D0%BF#n11.<\/span><\/li>\n<\/ol>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<strong>Received: <\/strong>25 May <span style=\"font-weight: 400;\">2025<\/span><\/p>\n<div class=\"sdm_download_item \"><div class=\"sdm_download_item_top\"><div class=\"sdm_download_thumbnail\"><img decoding=\"async\" class=\"sdm_download_thumbnail_image\" src=\"https:\/\/modecon.mnau.edu.ua\/wp-content\/uploads\/2017\/08\/pdf.jpg\" alt = \"zhebko.pdf\" \/><\/div><div class=\"sdm_download_title\">zhebko.pdf<\/div><\/div><div style=\"clear:both;\"><\/div><div class=\"sdm_download_description\"><\/div><div class=\"sdm_download_size\"><span class=\"sdm_download_size_label\">Size: <\/span><span class=\"sdm_download_size_value\">1,35<\/span><\/div><div class=\"sdm_download_link\"><span class=\"sdm_download_button\"><a href=\"https:\/\/modecon.mnau.edu.ua\/en\/?sdm_process_download=1&download_id=20417\" class=\"sdm_download blue\" title=\"zhebko.pdf\" target=\"_blank\">Download Now!<\/a><\/span><span class=\"sdm_download_item_count\"><span class=\"sdm_item_count_number\">340<\/span><span class=\"sdm_item_count_string\"> Downloads<\/span><\/span><\/div><\/div><div class=\"sdm_clear_float\"><\/div>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n<table style=\"height: auto;\" width=\"100%\">\n<tbody>\n<tr>\n<td style=\"background-color: #1abc9c; text-transform: uppercase;\">\n<p style=\"text-align: center; color: white; font-size: 14px; font-weight: 900; text-transform: uppercase; margin: 0; padding: 13.5px;\">How to quote this article?<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><span data-sheets-root=\"1\">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.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;.vc_custom_1657628632157{margin-top: 10px !important;}&#8221;]<a href=\"https:\/\/modecon.mnau.edu.ua\/issue-47-2024\/\">&lt;&lt; \u041f\u043e\u0432\u0435\u0440\u043d\u0443\u0442\u0438\u0441\u044f \u0434\u043e \u0437\u043c\u0456\u0441\u0442\u0443<\/a>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/section>","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_column_text] JEL Classification: H84; O18; R11; Q25; Q54. DOI: https:\/\/doi.org\/10.31521\/modecon.V51(2025)-11 [\/vc_column_text][vc_column_text]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 &nbsp; Economic consequences of the destruction of the Kakhovka Hydroelectric Power Plant and ways of<br \/><a href=\"https:\/\/modecon.mnau.edu.ua\/en\/economic-consequences-of-the-destruction\/\" class=\"more\">Read more<\/a><\/p>\n","protected":false},"author":10,"featured_media":13475,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[235],"tags":[236],"class_list":["post-20481","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-51-2025","tag-51-2025"],"_links":{"self":[{"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/posts\/20481","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/comments?post=20481"}],"version-history":[{"count":0,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/posts\/20481\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/media\/13475"}],"wp:attachment":[{"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/media?parent=20481"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/categories?post=20481"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/tags?post=20481"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}