Recreational and Residential Implications

In addition to impacting the city budget, recreational use economics must be considered in this economic analysis. When the Mascoma River is free flowing, it is a magnet for fishermen and paddlers. Both groups flock to the river for its natural beauty and easy access.

Kayaker participating in the Ledyard Canoe Club Slalom race held every year on the Mascoma River (Photo courtesy of Jim Block photography

Kayaker participating in the Ledyard Canoe Club Slalom race held every year on the Mascoma River (Photo courtesy of Jim Block photography

As Lebanon works to revitalize its historic downtown area with restaurants and stores, the river might help attract customers (the fishermen and paddlers could eat and shop here). It is unclear how the dam might affect these recreational users, but if they went away the town could possibly see less downtown traffic and less spending in the downtown district (this would also lead to less sales tax revenue for the city).

In addition, David Newlove a local fisherman and Trout Unlimited representative talked about how potentially damaging the river might hurt the Lebanon housing market. Mr. Newlove talked about how one of his favorite parts of living in Lebanon is to be abe to get home from work and start fishing all within 5 minutes thanks to how close great fishing is to his house. If the dam negatively affected fishermen, people like Mr. Newlove who are attracted to Lebanon for its fishing might not be interested in living there anymore.

Also, an apartment building sits right near the proposed downtown dam site. We have yet to talk to anyone who lives there, but it seems likely that they would not like having a dam  in their backyard. Further market research is needed to figure out how the housing market could be affected by this dam, but both the recreational and residential values associated with the river are important externalities (economic term for side effects) to consider when doing an economic analysis of this dam project.