ECON371/UBCO2024WT1/NewsWiki/group2/Wiki 6

Wiki 6

URL

https://www.cbc.ca/news/canada/edmonton/site-c-dam-bc-hydro-alberta-peace-river-1.7322035

Prof: I had to edit the source. It needs to be marked as an external site.

Problem

The article discusses concerns surrounding the new Site C dam on the Peace River in British Columbia, which has begun filling its reservoir and is set to generate power soon. While B.C. Hydro claims the dam will have minimal impact on downstream water levels in Alberta, local Indigenous leaders and communities express fears that it could speed up already low water levels and disrupt ecosystems which are critical for their livelihoods. Historical data shows significant declines in river levels over the decades, and people are worried that the dam could further diminish the flow of the Peace River, affecting drinking water access and natural habitats. As the tensions continue to rise between infrastructure development and environmental protection, the future of both the river and the communities relying on it remains uncertain.

Summary

The article by CBC talks about the new Site C dam in B.C. potentially having impacts in Alberta. Indigenous communities take advantage of many of the ecosystem services such as clean water, transport facilities and much more. The construction of a dam has many effects, some positive like being able to provide electricity, and some negative such as raising water temperature and destroying ice bridges used for movement.Alberta might see a reduction in river water levels and trapping of muskrat. Some research shows that there may not be a very big impact on the water levels, however Albertan communities continue to observe and try to mitigate risks posed by the dam.

Economic Concepts

Ecosystem Services

Ecosystem services are advantages that people obtain from natural ecosystems, such as pollination of crops, soil fertility, clean water, and air purification. These services are the outcome of fundamental natural processes that sustain life and wellbeing, such as photosynthesis and nutrient cycle. Patently, the very maintenance and delivery of these services is so much dependent on the health of the ecosystems, generally offering higher values than that of simply extracting one single resource that may eventually degrade ecosystems, such as timber. PES can provide one means of facilitating conservation by providing incentives for people who would use their resources or engage in action to protect the natural services.

Externalities

An externality is when an outside party is impacted by the decisions or actions of another party without being consulted or given an opportunity to influence the outcome. Environmental externalities can be experienced by both living and non-living things. These can often affect nature and animals as well. Positive externalities exist when a chosen course of action benefits a group that was not originally involved in the decision. Such as humans hunting a predator animal making it easier for a prey animal to survive. Whereas a negative example would be the development of a sewage treatment plant upstream of a river animals may be drinking from.

Application

Ecosystem Services

The Site C dam project presents significant challenges to ecosystem services in the Peace River Valley, disrupting natural processes that local communities have depended on for centuries. The Peace River valley provides biodiversity support, water purification, and carbon storage; benefits that are essential to the surrounding environment and indigenous communities like those represented by former Chief Francois Paulette. These communities rely on the river for food, transportation, and cultural continuity. Dam construction prioritizes energy production over these ecosystem services, potentially causing harmful fluctuations in water levels, river damage, and lasting impacts on cultural and economic lifelines. Recognizing and valuing these ecosystem services is vital for more sustainable and inclusive decision-making.

Externalities

Although the dam is being built in British Columbia, it will create negative externalities for several communities in Alberta that rely on the water the dam will be blocking off. Some side effects of the dam include raising the water’s temperature, which will prevent the water from freezing. Several communities use the frozen bodies of water for easier travel during the winter. The local muskrat population will also suffer for the reduced amount of water. Even if the dam’s effects do not reach Alberta, BC communities downstream from the dam will still see a change in water access. The dam will cause the river’s water level to fluctuate as power generation is needed at different times. Meaning downstream communities will have less consistent access to whatever amount remains.

Conclusion

In conclusion, the Site C dam project represents the complex relationship between infrastructure development and the preservation of vital ecosystem services, particularly for Indigenous communities in both British Columbia and Alberta. While the dam promises to provide significant energy resources, it poses substantial risks to the health of the Peace River and its surrounding ecosystems, ultimately jeopardizing the livelihoods and cultural practices of those who depend on these natural resources. The potential negative externalities, such as rising water temperatures, altered ice conditions, and reduced water levels, highlight the urgent need for inclusive decision-making that prioritizes ecological health and community well-being.

Prof: Nicely done. I can also see a connection to the Coase theorem here. It is mentioned that BC Hydro is in communication with the government of Alberta about managing any downstream effects. Within the Canadian constitutional context, resource issues fall largely under provincial control, and impacts on other provinces are generally not considered. This in effect gives BC the right to build the dam, and it would be up to Alberta to pay BC should it desire that BC take actions to reduce the external impact caused by how the dam is operated.