Good living of communities and sustainability of the hydropower business: mapping an operational framework for benefit sharing

Abstract The negative impact of hydropower companies is cushioned frequently through compensation that is proportional neither to the needs of communities nor to the energy business. Considering the dependence of hydropower on the environment, it is unclear how the good living of communities can be combined with the long-term sustainability of power companies. Therefore, the purpose of this study was to establish a benefit sharing scheme between hydropower companies and local communities. We conducted a systematic literature review using a sequential mixed-method approach. In the first stage, we performed a quantitative bibliometric analysis, and its results, described in Model 1.0, were the basis of the second stage. Consequently, in the second stage, we conducted a content analysis of 40 documents to enrich the previous version of the model in Framework 2.0. After completing both the methodological stages, we prepared a theoretical operational framework for benefit sharing based on collaborative governance that assigned different specific weights for companies and local communities. Equal benefit sharing is the result of an adaptive process that depends on (1) the performance of companies, (2) the level of empowerment of communities and (3) the state’s capacity to intervene in setting rules of engagement that help reduce power asymmetries between companies and the society.