The Situation
One of the highest profile uses of the contingent valuation method in water resources management involved the re-regulation of Glen Canyon dam. In the early 1980’s it
became clear that continued operation of the dam to provide peak-load power was adversely affecting the downstream ecosystem in the Grand Canyon, and significantly reducing the quality of recreational rafting. The valuation question of concern was how much recreational rafting was worth, compared to the market value of the peak-load power supply.