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The Costs and Benefits of Dam Removal in the Klamath
 

The Costs and Benefits of Dam Removal in the Klamath

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    The Costs and Benefits of Dam Removal in the Klamath The Costs and Benefits of Dam Removal in the Klamath Presentation Transcript

    • The Costs and Benefits of Dam Removal in the Klamath A Preliminary Assessment A Presentation for the Symposium on Dam Modeling Conference April 2007 Credit: American Rivers
    • Overview
      • Ecotrust: Who We Are
      • Project Background: Klamath River
      • 3-Part Research Agenda
      • Research Project 1: Preliminary Assessment
    •  
    • Project Background – The Klamath River
    • Overarching Research Agenda
      • Preliminary Assessment
        • Identify the likely costs and benefits of dam removal
      • Inundated Lands
        • Conduct scenario building around likely use options for the reclaimed lands and estimate the associated economic value
      • Property Values
        • Estimate the economic value of varying levels of lake adjacency for residential properties in the study area
    • Research Project I: Objectives
      • The overarching research objectives were to:
      • Identify and, if possible, quantify both the market and non-market values associated with removal of 4 dams on the Klamath River (i.e. J.C. Boyle, Copco 1, Copco 2 and Iron Gate)
      • Assess the economic impact dam removal would have on Siskiyou County
      • Perform a comparative analysis that examines the costs and benefits of dam removal
    • Research Project I: Methods
      • Identification of likely impacts
        • To existing benefits
        • Created by dam removal
      • Review of existing research
      • Scenario building
        • Secondary Data Sources
        • Input-Output Analysis
        • Benefit Transfer
      Credit: American Rivers
    • Research Project I: Proposing a Change
      • Benefits of River: Status Quo
      • Agricultural water supply
      • Industrial service supply
      • Groundwater recharge
      • Freshwater replenishment
      • Hydropower generation
      • Recreation
      • Habitat
      • Preservation of rare and endangered species
      • Migration, spawning and reproduction of aquatic organisms
      • Stakeholders
      • Electricity consumers
      • Local tribes
      • Farmers
      • Commercial and sport fishermen
      • Recreationalists
      • Outdoor enthusiasts and conservationists
      • Local communities
      • Fish and other species
      • Property owners
      • PacifiCorp
    • Research Project I: Likely Costs and Benefits
      • Negative – Property owners – Loss of lake view, uncertainty of inundated lands
      • Neutral/Positive – Inundated lands use
      • Negative – Loss of property taxes if property values decline
      • Neutral/Positive – Inundated lands
      Property Values
      • Positive – Commercial fishers, Processing plants, Recreational fishers, Local tribes
      • Positive
      Fishing Industry
      • Unknown
      • Positive – Spending from removal, tourism
      • Negative – Loss of jobs and taxes
      Local Economy
      • Positive – Fisheries, Visitors, Conservationists, Fish
      • Positive – Likely increases in sport fishing industry
      Fish Populations
      • Positive – Local Tribes
      • Positive
      Cultural Values
      • Unknown – Cost of new source
      • Negative – If electrical rates increase
      • Neutral – Not responsible for finding alternative power source
      Power
      • Negative – Whoever pays cost
      • Positive – Jobs and Spending
      Dam Deconstruction Other Stakeholders Siskiyou County Impact
    • Klamath River Dam Removal: Assessment of Inundated Lands A Presentation for the Symposium on Dam Modeling Conference April 2007
    • Research Project II: Assessment of Inundated Lands
      • The overarching research objectives were to:
      • Describe the size, ownership, and additional characteristics of the exposed lakebeds
      • Identify potential uses and constraints of exposed lakebed properties
      • Quantify potential land values
    • Research Project II: Assessment of Inundated Lands
      • Copco Lake and Iron Gate Reservoir
    • Research Project II: Assessment of Inundated Lands
      • Copco Lake and Iron Gate Reservoir
    • Research Project II: Assessment of Inundated Lands
      • Copco Lake and Iron Gate Reservoir
    • Research Project II: Assessment of Inundated Lands
      • PacifiCorp Properties
    • Research Project II: Assessment of Inundated Lands
      • PacifiCorp Properties
    • Research Project II: Assessment of Inundated Lands
      • PacifiCorp Properties
    • Research Project II: Assessment of Inundated Lands
      • Valuation Process
      • Create Use Scenarios
        • Residential
        • Agricultural
        • Open Space
      • Apply $ / Acre Values
        • Based on Comparables
        • High – Low Value Estimates
    • Research Project II: Assessment of Inundated Lands
      • Unknowns
      • Bathymetry
      • Sediment / Soil
      • Assumptions
      • A zoning change could take place
      • Riparian buffers will be enforced
      • A percentage of the land is developable (aka Feasibility)
    • Research Project II: Assessment of Inundated Lands
      • Special Residential Value Considerations
      • Value = $ / Acre (high or low) x % Developable
        • No build (Riverfront only) = 0%
        • Low build = 50%
        • High build = 86%
      • Example: Highest Potential Value = ((High Build * Acreage) * High Value)) Riverfront + ((High Build * Acreage) + High Value Estimate)) Non-riverfront
    • Research Project II: Assessment of Inundated Lands
      • Residential Scenario
    • Research Project II: Assessment of Inundated Lands
      • Agriculture / Grazing Scenario
    • Research Project II: Assessment of Inundated Lands
      • Open Space Scenario
    • Research Project II: Assessment of Inundated Lands
      • Value Outcomes
      Residential Agriculture Open Space $134,788,660 High Value $57,666,400 Median Value $4,132,000 Low Value $14,910,000 High Value $2,485,000 Low Value $11,264,000 High Value $2,816,000 Low Value
    • Research Project II: Assessment of Inundated Lands
      • Conclusions
      • More information will lead to a smaller range of values
        • Bathymetry
        • Soil and Sediment
        • Demand at time of sale
      • Aid potential mitigation
      • Basic methodology
      • Potential impacts to adjacent owners
    • Research Project III: Lake Adjacency and Residential Property Values
      • The overarching research objectives were to:
      • Build a database which includes property and pricing information for the Copco/Iron Gate areas on the Lower Klamath River; and
      • Perform a comparative analysis to assess any differences in current property values specifically associated with lake front ownership or lack thereof.
    • Research Project III: Lake Adjacency and Residential Property Values
      • Defining the Study Area
    • Research Project III: Lake Adjacency and Residential Property Values
      • Sample Set
      • Residential Properties
      • Sold between 1998 - 2006
      • Three distinct areas
      • 823 Samples
    • Research Project III: Lake Adjacency and Residential Property Values
      • Form and Variables
      Dummy variable = 1 if property has a view of a lake VIEW_LAK Sale year of the property minus 1998 (first year included in dataset) SALE_YR Dummy variable = 1 if property is across the street from a lake PROX_LAK Dummy variable = 1 if property is on a lake ON_LAK The natural log of the sale price per acre LN_SALA The natural log of per acre assessed land value LN_ALVA Dummy variable = 1 if property has a residential structure HOME Total acreage squared ACRES2 Total acreage of the property ACRES Description Name
    • Research Project III: Lake Adjacency and Residential Property Values
      • Possible Next Steps
      • (Once adjacency analysis is completed)
      • Integrate Inundated Lands Scenarios with Lake Adjacency value
        • Further describe the relationship between newly exposed land and existing properties
        • Identify the net impact of new uses on existing property values