Whitelaw, Ed, and Ed Macmullan. “ A Framework for Estimating the Costs and Benefits of Dam Removal.” Bioscience 52 (2002): 724-730. (reviewed by Bethany Parkyn)
Summary:
This article establishes a basis for a cost analysis with regard to dam removal and is applicable to the four dams on the lower Snake River . The authors analyze and critique the principles used by the US Army Corps of Engineers in a December 1999 cost analysis. They find that two of the most influential motivations in a decision for or against dam breaching are the prominent guidelines, and summarize them as “the effect of the decision on the value of the goods and services derived from the environmental resources” and “the effect on jobs and associated variables, such as incomes and the well-being of communities.” With regard to the first motivation, the authors note that it is vital to a well-balanced decision to analyze both costs and benefits, and also that most analyses place heavy emphasis on costs while minimizing effects of benefits.
In their critique of the Corps' analytic techniques, they show that only select information was used in the recommendation process (this critique was supported by the National Research Council), and that the study produced misleading results. Their financial analysis is deficient in two areas: the Corps excluded subsidies and also beneficial tribal circumstances. They also overestimate job losses and the economic impacts that the proposed job losses would have on the local communities. In closing, the authors recommend that future studies include all relevant costs and benefits (including subsidies and externalities), and that they use the data in relation to its relevance and not take it out of context to ensure an accurate and useful study.
Critique:
I really enjoyed this article because it uncovered some of the sneaky tricks that government agencies like the US Army Corps of Engineers might use to bias the uninformed public. It was highly applicable to the Snake River dams, and the data and ideas are still relevant although they were published several years ago. The introduction gives a general overview of the important aspects of a cost analysis, and the reader can see how they are put into practice as the article continues.
Robert D. Clark Honors College, University of Oregon
HC 441: Science Colloquium, Columbia River Ecology
Fall term, 2005
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