Dam removals: an agricultural analysis

Abstract

Dam removals are occurring with increased frequency throughout the United States. 77% of all dam removal projects in U.S. history have occurred in the 21st century and the number of dams being removed each year is rising. Dams often play a key role in agricultural production, making it important for agricultural producers and policymakers to understand the effects of these removals as they become more common. This paper explores the causal effects of dam removal on agricultural productivity in the United States using a two-way fixed effects event study and an instrumental variable framework. Primary results of the analysis are mixed and differ based on exact specifications used but show initial evidence of per acre crop productivity increases and cash receipt declines following a removal. Further research is needed to explore the fine-scale effects of dam removals on individual agricultural producers and to expand on the preliminary causal relationships observed in this paper.