Compensation policy for displacement caused by dam construction in China: An institutional analysis

•We conducted institutional analysis on compensation policy for displacement in China.•We identified distinguishing features of compensation policies in four epochs.•We found relationship between policy evolution and socioeconomic transformations.•Findings demonstrated linkages among state, market, and civil society in governance.

Large scale hydro projects have displaced millions of people in China, and many more large scale projects are expected in future years. Compensation policy for relocated people has evolved over time. We identify distinguishing features in four historical epochs between 1949 and the present, and conducted an institutional analysis of Chinese compensation policy applied to hydro projects based on a multi-dimensional conception of wealth. Transitions between epochs are linked to accountability crises, and adaptive policy responses are seen as strategies to maintain legitimacy and stability. Our analysis demonstrates linkages among state, market, and civil society in compensation policy and in Chinese governance, more broadly.