Moving towards co-benefits of hydropower: Ecological efficiency evaluation based on LCA and DEA

China is ambitious to develop renewable energy for the commitment of carbon neutralization in 2060. Hydropower has been regarded as one important solution to mitigate greenhouse gas (GHG) emissions by replacing fossil fuels, while the related ecological impacts hinder its sustainable development. This study proposes a framework to integrate life cycle analysis and ecosystem service assessment by evaluating 43 case hydropower plants (HPs) in China. Combining with the super slacks-based measurement model, the ecological efficiency of HPs is evaluated to provide optimizing pathways. The results show most environmental impacts of the whole HP life cycle are from the preparation and construction stages of HPs. The ecosystem service losses (ESLs) are mainly from the losses of biodiversity and water supply. The first cascade HP generally has a smaller ecological efficiency than downstream HPs. Furthermore, the current pricing structure of the studied HPs does not adequately account for the associated ESLs. It suggests that consumers in transmission destinations should bear a higher cost to address the ecological impacts of HP operations. Consequently, there is a need to revise the pricing mechanisms to reflect and internalize the ecological costs more accurately. Finally, based on the results, policy implications for achieving “co-benefit” of hydropower development and ecosystem protection were raised: (a) conducting the comprehensive and systematic evaluation of HPs including LCA and ESL assessment before HP planning; (b) ensuring the connectivity of natural flow and the preservation of fish areas; (c) revising the pricing mechanisms of hydropower based on the fair price.