Valuing the Pacific Salmon in the Pacific Northwest: A Valuation Technique

The Pacific Northwest (PNW) is known for its beautiful forests and famous salmon runs. Over the past 50+ years there has been a steady decline in the amount of salmon returning to their breeding grounds, raising concerns over their future. Salmon provide much needed nutrients to the luscious green forests and also support a multi-million-dollar fishing industry. The construction of the hydroelectric dam system on the Columbia River has caused major destruction to the historical habitats of this keystone species. This paper seeks to look at the causes of the destruction of the salmon species and look at previously done studies to determine a value of this important species in an effort to place better protection over them and possibly reverse any damage done to the river system before it’s too late.


I. Introduction

What is the value of a single salmon fish? An entire salmon generation? Depending on who you ask, you will receive different responses, based on where people live, their occupation, hobbies, and people’s general interest in the environment. While the answers would vary, each person you ask, no matter where they live, would place some value, whether large or small, on the salmon species.

Understanding the entire impact that the Columbia River salmon have on the ecosystem, the economy and our everyday lives requires us to evaluate “the social, ethical, aesthetic and cultural values. (McNeely et. al 1990)” This provides an insight into why “salmon are integral to the ecosystem and the culture of the Pacific Northwest (PNW). In fact, salmon are considered a “keystone species” by scientists because of the benefits they provide to both aquatic and terrestrial ecosystems. (Klein 2017)” With the Salmon being a keystone species in the Columbia River Basin, a value needs to be derived and placed on these endangered species so that present day and future generations can enjoy the existence of the salmon fish, even when they do not seem present.

Beginning with the completion of the Bonneville Dam in 1937, the Columbia River basin began to see the start of a dammed-up river system. Historically, over 30 million salmon would swim upstream to their breeding grounds and lay eggs for the next generation. Currently, less than 5 percent of the 30 million make it back to their breeding grounds (see Figure 1). While dams provide flood control and electricity to the surrounding area, they also “play a significant role in altering the spatial pattern of temperature in rivers and contribute to thermal pollution, which greatly affects the river aquatic ecosystems” (Ling, et al. 2017). The hydroelectric dam system (see Figure 2), has “also played a major role in the decline and extirpation of numerous salmon and steelhead populations, including 13 stocks currently listed under the Endangered Species Act.2” Whether we like it or not, individually or as a society we implicitly or explicitly place a value on environmental resources. Typically, the value placed on an endangered (or threatened) species is typically higher due to a fear of losing the species for future generations and a moral feeling of helping the environment makes people feel good.

Figure 1
Figure 2

Salmon face a much different ecosystem today, then they did before the completion of the hydroelectric dam system was implemented. The dam system (along with other climate changes) has introduced new predators into the waters, both man-made and invasive. It has also increased the water temperature, decreased the river’s flow and has destroyed many of the river’s tributaries which were once home to the gravel beds essential for salmon eggs.

So exactly how much are salmon worth? This paper will seek to examine both the use value and the non-use value (intrinsic value) of the major salmon species in the Pacific Northwest, and specifically in the Columbia River basin. By examining these uses, we will attempt to show through empirical data, the value of this keystone species and briefly explain what can be done to mitigate the harmful effects of the new environment mankind has made for salmon.

II. Motivation

Having lived in the Pacific Northwest, my entire life, I have always enjoyed the beauty that comes with the mountains, forests, wildlife, and the river systems that supply water to both farms, cities, and natural habitats. When one takes a step back and looks at the complex ecosystems that make up the Pacific Northwest, one begins to realizes there are a lot of moving parts that all depend on each other to make the ecosystem function.

In sixth grade my class had the opportunity to be part of an education video on Salmon runs. As part of the video, a few students (including me) were selected to be bears, the main predator of the salmon. The remainder of the students were the salmon. The goal of the Salmon was to get from point A to point B, avoided the large rocks, waterfall, and most importantly the bears. This activity was to show the challenges that salmon had swimming upstream to their breeding grounds. Afterwards, the Idaho Fish and Game taught us about fish ladders, dams, and the entire journey that the salmon make just to be able to breed.

After this experience I became interested in the salmon species that swam through Idaho’s rivers and visited places such as Redfish Lake, Middle Fork of the Salmon River, and the MK Nature Center in Boise (an educational center to learn about Salmon). I was fascinated, and I learned all that I could about the salmon, rivers and dams within Idaho and Oregon. This fascination grew the older I got. My main motivation behind this paper comes from a childhood of being fascinated with salmon. I am motived to share the literature and data that is out there on the effects that the decline in salmon has on the ecosystem. “It is easy to forget how important fish and other aquatic life are, some of which reside at the bottom of the food chain.3” With the salmon fish (and other species) being a keystone species across the entire Pacific Northwest they must be continually protected against extinction, which requires placing a value on this species.

III. Literature Review

The sources and causes of the thermal pollution in U.S. rivers are varied, which makes it difficult to pinpoint the extent of the problem, (Bobat, 2015) and since the thermal pollution caused by hydroelectric plants hardly effects human health, little is done and is generally neglected (Bobat, 2015). Yet, dams play a significant role in altering the spatial pattern of temperature in rivers and contribute to thermal pollution, which greatly affects the river aquatic ecosystems. Understanding the temporal and spatial variation of thermal pollution caused by dams is important to prevent or mitigate its harmful effect (Ling, et al., 2017). Ling, et al. (2017) and Becker (1973), conducted many studies that show temperatures downstream of dams are much cooler than those upstream of dams in summer, while water temperature remains stable along the river in winter, showing evident characteristic of the thermal pollution caused by dams which are spatially and temporally modifying temperature in the Colombia River Basin (Becker, 1973). Other studies also attempted to pinpoint temperature modifying influences existing or anticipated in the Columbia River basin, namely, the impact of impoundments that result from hydroelectric development and the effect of heated discharges from operating reactors (Becker, 1973). Flow reduction and/or flow alteration can also be responsible for changes in river water temperature which is the dominant factor controlling the evolution and activities of all cold-blooded aquatic organisms (Sinokrot B.A. & Gulliver J.S.,2000; Becker 1973), such as migrating salmonid species (Hilborn, 2013).

River temperature is arguably one of the most important parameters which determines many aquatic habitat attributes and the general health of river ecosystems, and the principle contributor of the heat that is changing the rivers temperature and affecting the river’s ecosystem is the electric-power industry (Caissie, 2006; Clarkson & Childs, 2000). According to Clarkson & Childs (2000) each species living in the aquatic ecosystem have become adapted to slight seasonal variations in water temperature in its habitat, but when exposed to extreme shocks of abnormal heat pockets, fish species cannot adapt quick enough and are affected in many ways such as behavioral changes, mortality in larvae, lowering spawning rates, inhibited embryonic development (Clarkson & Childs, 2000), and oocyte degeneration in 50% of female fishes (Verones et al., 2010). If water temperature continues to rise due to hydroelectric power plants at the current rate, this could have important (both positive and negative) effects on aquatic biodiversity and the overall river ecosystem (Verones et al., 2010; Kaushal et al., 2010). Increases in the overall water temperature could also lead to a disruption in the seasonal timing of spawning, larval development (Schindler et al., 2005).

With the rising river temperatures cold-blooded fish species not only have to deal with thermal shocks affecting their behavior and development, they now are being introduced to invasive warm-blooded fish species (Lawrence et al., 2014). Strategic thinking that recognizes trade-offs that need to be made between ecosystem protection and dam building, among other sources of thermal pollution need to be taken before the effects are irreversible (Mantua et al., 2012; Lawrence et al., 2014).

The future of the salmon in the Pacific Northwest is up in the air, but has constantly received widespread support from public opinion polls (Lackey, 2003). There is a divide within the political poles of America, many are able and willing to bear any burden to protect and restore the remaining salmon runs. While the others acknowledge the importance of the salmon but aren’t willing to accept any economical or societal change to help these endangered runs (Lackey, 2003). Attempts to avoid the extinction of an endangered species is recognized as a passive use value, which is a value given to a species because of their benefit to mankind simply because their existence is known. The Pacific Northwest salmon fit easily into this picture (Loomis, 1999). By combining a use and non-use value, economists and other scientists are able to place a value on a species.

Salmon provide just around 70 percent of a forests nitrogen once their carcasses begin to decompose. This source of nitrogen is essential for the forest to support life, and in return, the nitrogen rich trees then protect the habitat of the salmon (Post, 2008). Without a proper value place on the salmon, not must is expected to change as people don’t fully understand the benefits this keystone species brings to the entire ecosystem nor do they understand the essential trade-off between hydropower and salmon (Håkansson 2007). But placing a value on anadromous fish, and fish runs is a daunting task in a river system such as the Columbia River (Meyer, 1982).

The purpose of this paper is to review the above-mentioned literature and show and propose different methods and techniques to place a value on the salmonid fishes, who use the Colombia River Basin as their breeding ground. Where possible, the use of empirical data will be used in attempts to show the value that the salmon have on the ecosystem and economy of the entire Pacific Northwest. While we seek to place a value on the ecosystem service that these fishes provide, the purpose of this paper isn’t to introduce techniques and practices to fully mitigate the thermal pollution in the rivers, only provide evidence and data that a value exists for the salmonid family within the Columbia River basin.

IV. Data & Analysis

When beginning to do research for this paper, I half expected the data for this topic to be readily available, easy to use and manipulate. Most data that is available in the current literature is data reported within papers as results from other papers, or experiments they have run. Understanding that this is to be a quantitative paper, I will present the few data points I found along with their analysis. After which I will go on and present a theoretical econometric model that I would use to run a regression given that the dataset was available and full (with historical data and current data). Then a continuation of what data I would need to do a deeper in-depth analysis of this paper will be presented and what I would do with that data.

A. Use Value

In environmental economics, when attempting to value a species or environmental resources there are two values you seek to derive, a use value and a non-use value. Use value is “the value of products that are bought and sold on the market… Usually, these values are the only ones that count as part of [GDP]; and then only when they are removed from the ecosystem (McNeely et al, 1990) and “products that are used by people but are not bought or sold on the market. (McNeely et al.)” Salmon is a highly demanded public good in the economies of Oregon and Washington, with large fish markets along the coast. The main feeding grounds for the PNW salmon are thousands of miles from their birth place in the Pacific Ocean. They drive a multimillion-dollar industry that is being hurt by the declining salmon numbers. 4 of the 6 major salmon species are currently protected under the Endangered Species Act (see Figure 1) and are therefore very limited on how much can be caught each year, dropping revenue for fishing boats and fish markets. “As recently as the late 1970s, commercial ocean salmon fishing in Washington, Oregon and California brought in an average annual catch valued at $180 million, and was responsible for 7,200 jobs in fishing, fish processing, and supporting industries. By 1997 estimates, fisheries economist Hans Radtke, the income generated by the ocean catch had dropped to $26 million, and about 6,000 jobs had been lost” (Zuckerman, N.d.). A major drop in the ocean market has occurred, and using the numbers from 2015 (as seen under ‘Current’ in Figure 1) it is safe to assume that the market hasn’t been able to bounce back to its historic levels. With the decrease in salmon continuing today (at a slower rate, due to habitat restoration projects) the economies of these three states could greatly benefit from working towards a more sustainable population of salmon within the basin.

In a handbook prepared by ECONorthwest they analyzed literature and based upon multiple assumptions came to estimate the value of recreational fishing at $200/fish and commercial fishing at $5-$70/fish (as seen in Figure 3).

Fishing is a popular pastime along the Columbia River and its tributaries and people derive a direct use from the salmon fish as they catch them. From both a social and economic aspect, those who go out and fish along the rivers enjoy their time in the water and enjoy the benefit taken from each additional fish caught. With a decline in supply, this popular pastime could see a huge decrease in participants which could explain why such a high use value ($200) has been placed on recreational fishing. Looking at the commercial side, there are 10,000+ fishing boats on the Pacific. These boats have had to reduce salmon catches in recent years to allow the salmon to return home and breed the next generation is large numbers, but a use value still exists. At just $5-$70/fish these fishermen sell to markets (which is then counted in GDP) and sold on our store shelves. market’s judgement is that salmon, at today’s range, isn’t an everyday fish. It’s reserved for restaurant tables and weekend dinners, and end-customers are more than willing to pay for it” (Berge, 2018). As a society, there is a high value placed on salmon as a species because of the direct use we derive from them, in local and state economies, from the delicious meat they provide and from the health benefits that meat delivers. With an intrinsic value in the range of $5-$200, there is a demand for the salmon to be saved so we can continue to benefit from this essential species.

B. Non-use Value

Non-use values are more controversial because many times when attempting to derive a value from someone, it’s a hypothetical situation and they will disregard their income and spit out a larger, more unrealistic amount. Attempting to place a non-use value on the salmon species requires a researcher to determine the public’s willingness to pay (WTP). Anyone familiar with the Pacific Northwest can understand how important the salmon are. They are a cultural identity to the Nooksack and other Northwest Indian tribes (Klein 2017). How can you place a monetary value on a ‘cultural identity’? How can you place a monetary value on the benefits they provide to both aquatic and terrestrial ecosystems? These values can be derived from administering a survey, such as the one found in Figure 4.

Figure 4

By asking a question of, “would you be willing…” asks the respondent their willingness, and derives a value for the species in question. In Figure 2, such a survey was administered and the values they derived (estimated) came out to be $30-97 per household per year. Applying this to Oregon and Washington, that gives you a gross value of $102-$330 million dollars per year!

A study done in Maine on two different endangered species really had me intrigued on a regression that they ran based off data collected. While the following regression model isn’t their exact model, it’s a proposed model that uses much of the data points:

This regression4 was to show the effects of the three explanatory variables on the probability that someone would say “yes” on the survey to pay a specified amount to protect a species. The variable ‘bid’ was the amount they were asked to pay, and as expected in the results, the coefficient came back negative. I would expect these same results in a regression ran by data collected in the PNW. Attitude was a variable trying to explain the respondent’s attitude towards the environment, which as I would expect in the PNW as well, returned a positive coefficient. This is because if someone had a good attitude towards saving the environment, they would be more inclined to pay to protect it. Knowledge was the most interesting variable, because the more knowledge one had, the more likely they were to support the environment. This is the major problem facing the PNW and the lack of support for supporting the salmon. Lack of knowledge on their non-use values. Salmon are defined as a “keystone species” within the Columbia River basin, making their survival essential to the health of the ecosystem, and culture of the Pacific Northwest. So why are we continuously damaging their habitats and not searching out their value to better show to everyone that they actually mean something to people and the environment.

Salmon provide up to 70 percent of nitrogen to the forest foliage (Post, 2008) which supports a strong forest growth rate. Along with bringing nitrogen to the area, over 50 species of mammals, birds, and other fish feed on adult salmon and salmon eggs. So, a single generation of fish, if permitted to return to their breeding ground without any major disruptions, provides food for trees, animals, and the river system. This then translate to a beautiful thriving forest for us to enjoy as tourists and residents of the Pacific Northwest. When this information is well known, people establish a deeper connection to the “silver, green, and red forms of wild salmon swimming upstream through the clear depths of a river. (Rahr, N.d.)” Salmon provide such a high non-use value to the PNW and little is being done to restore (there are a select few restoration project being done) their habitat and river system to its previous healthy state. An estimated value has been derived, but more research and data collection need to be done to further derive a non-use value so that policymakers can realize that there are potential impacts on a species when a dam is built, or logging is done, or any other activity is done on their habitat. There is a value that needs to be found, to protect the salmon, and preserve the beauty and cultural significance of the Pacific Northwest.

V. Conclusion

What is the value of a single salmon fish? An entire salmon generation? Asking anyone, someone is bound to give you a value. After looking over a few empirical studies done by other institutions, we can conclude that a value exists. While no exact value exists, we can estimate that the value of a salmon fish, given its use and non-use value, its total value is within the range of $30-$200 dollars. Further studies and WTP surveys need be administered to further the studies into finding a more specific value that scientists can present as findings to further the protection of the salmon habitats. Which in turn protect local economies, state economies, tribal values, and the entire ecosystem of the Pacific Northwest.

1 See Figure 3

2 https://www.americanrivers.org/river/columbia-river/

3 http://www.altenergy.org/renewables/hydroelectric.html

4 Results of the regression from the Maine data can be found in Figure 5

Figure 5

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