Elwha Watershed Information Resource

Establishing a Baseline

Baseline conditions and monitoring recommendations are described in the August 2007 report prepared by Battelle Memorial Institute under contract with NOAA's Coastal Services Center.

In order to monitor the effectiveness of a restoration project in achieving ecological goals, it is necessary to characterize the baseline condition against which future change will be measured. Similarly, a detailed assessment of baseline economic conditions is needed in order to monitor the economic effects of restoration. The Battelle Memorial Institute, under contract with NOAA's Coastal Services Center, has developed a characterization of economic conditions in the region that provide a sound basis for monitoring the future effects of removing the Elwha and Glines Canyon Dams. This characterization describes the economic conditions prior to dam removal in the region that will be most affected by the dam removal and watershed restoration project (Battelle 2007).

Much of this economic baseline, which consists of a snapshot of current economic conditions and an assessment of key trends, has been developed within the framework of an economic impact model. Economic impact models provide a tool for assessing not only the direct economic effects of dam removal (for example, those associated with increased recreational use of the watershed), but also the indirect effects (for example, the expenditures by those residents newly employed in providing goods and services to recreational users). The resulting database describes the industry types and levels of output, employment, and earnings to provide a better understanding of the structure of the economy.

Monitoring the Impacts After Dam Removal

For a number of reasons, it is critically important to continue monitoring the regional economic conditions after dam removal. First, the economic impact model provides a framework for future monitoring efforts. By adding new data to this model over time, the direct and indirect economic impacts of dam removal can be estimated.

Second, future monitoring efforts will provide a basis for measuring the extent to which forecasted effects matched up with actual affects. This can help refine forecasting models that will be used to guide future dam removal decisions.

Third, because the nation will face many decisions in the next few decades about the repair, removal, or replacement of more than 76,000 dams that exist in this country, it is important to collect information on the actual effects of dam removal systematically to guide these decisions.

Finally, the projected benefits of dam removal are only potential benefits. Realizing these benefits requires action--someone must start the new businesses or expand the existing businesses that are needed to make these potential benefits reality. The information gained by studying the structure of the economy and its response to dam removal will inform economic development decisions in this region and in other regions where dams have been removed.

Battelle's 2007 report is based on the most current economic information that is available and provides recommendations for post-removal monitoring of the economy. This study represents an important step forward in understanding the economic context within which the effects of dam removal will be felt. However, it is important to note that this study focuses exclusively on market values, which are expected to be much smaller than the non-market effects.

Reference

Battelle Memorial Institute. 2007. Economic Support for the Elwha River Watershed: Final Economic Characterization Report with Monitoring Recommendations. Prepared for The Coastal Services Center, National Oceanic and Atmospheric Administration. Download.