National Economic Analysis of the Four Lower Snake River Dams
Posted /Economic WasteFebruary 2016
By Johnny Mojica, Research Analyst, Earth Economics Ken Cousins, PhD, Ecological Economist, Earth Economics Tania Briceno, PhD, Ecological Economist, Earth Economics
This report presents a thorough analysis of the benefits and costs of the four Lower Snake River dams in both “keep dam” and “breach dam” scenarios. The dams were originally purposed for hydropower and navigation benefits, but in order to achieve a positive benefit-cost ratio, indirect benefits for navigation and power and additional credits for the use of “cheap hydroelectric power” over coal-fired plants were included.1 Additionally, the original analysis did not account for lost direct and indirect benefits, such as the recreational benefits associated with a free-flowing river or tribal fishing benefits.
This report concludes that the benefits created by the four dams are outweighed by the costs of keeping them. Furthermore, with the possible exception of navigation and irrigation water supply, the current benefits would not be lost, but rather increased, if the dams were breached. Due to subsidies and unclear rail and barge cost data, the verdict is still out on whether there is an economic benefit to shipping by barge over rail. The four Lower Snake River dams in southeast Washington do not provide a net benefit to the nation, and they may never have.