Author(s): Rollin H. Hotchkiss; Frank H. Bollman

Linked Author(s): Rollin H. Hotchkiss

Keywords: No Keywords

Abstract: Current methods of economic analysis for reservoir sedimentation are short-sighted, narrowly focused, and do not allow for flexibility when operating a dam. The shortsighted nature of benefit-cost analyses is due to the use of a constant discount rate to determine the present values of future benefits and costs. Such a practice implies that any benefits more than about 100 years into the future are not worth any increase in initial project cost. Present analyses are narrow-minded because the physical and socio-economic implications of reservoir sedimentation are not considered upstream or downstream from a dam, nor are non-monetary items considered. Flexibility is denied dam operators because sediment management techniques, such as low-level outlet operation, cannot be justified using the constant and narrowly focused constant discount rate. It is recommended that discount rates be lowered or re-evaluated on a regular basis for all projects, that existing methods for socio-economic impacts be examined for reservoir sedimentation analysis, and that low-level outlet gates and similar appurtenances be seriously considered as a part of all dam designs and operations.

DOI:

Year: 1997