Environmental Economics - The Bakun Dam Project in Sarawak

For more than 30 years, there have been discussions concerning the development of the Bakun Dam in the East Malaysian state of Sarawak. If built, the dam would be the largest in South-East Asia. The Bakun Dam: A Case Study indicates that generating 2400 megawatts of power, it would provide electricity for all of Sarawak, and for industries and cities in mainland Malaysia, through a cable under the South China Sea. At 650 kilometres, this would be by far the longest cable in the world.
The Bakun Dam has been a highly controversial issue spanning over three decades as its validity and use to the people of Malaysia have been questioned. For the cost that involves producing this dam, at seven billion dollars and rising, is there a need for so much power at all? The main environmental issue here is whether Sarawak should sacrifice forests in order to promote the economic growth of its country or cease construction to preserve the traditional environment and standards of living.
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