Economic Effects of Declining Water Levels at Lake Mead and Lake Powell Lake Mead and Lake Powell, located along the Colorado River in Arizona, Utah, and Nevada, are popular attractions for outdoor recreationists. In fact, in 2019 the Lake Mead National Recreation Area (NRA) (Lake Mead) and Glen Canyon NRA (Lake Powell) ranked 6th and 19th nationally in recreation visits among all National Park Service sites. The lakes serve as important drivers of tourism in nearby communities. Meanwhile, water levels at Lake Mead and Lake Powell have recently fallen to historic lows, triggering water cutbacks in Colorado River Basin states. Changes in lake levels are influenced by drought, climate change, and overallocation of Colorado River water among its many users. The Colorado River Drought Contingency Plan (DCP) is an agreement among Basin states to voluntarily conserve water in an effort to avoid lake levels falling to elevations that trigger additional water cutbacks under current law. A benefit of avoiding further lake level declines is the outdoor recreation and associated economic activity that those higher lake levels support.
Lower lake levels can impact access to recreation sites such as boat launch ramps and marinas and may make navigation in certain areas dangerous or impossible. This may have negative impacts on recreation visitation, with economic implications for local gateway communities that depend on outdoor recreation tourism.
This study estimates the effects of changes in lake levels on recreation visits to Lake Powell and Lake Mead and the resulting economic effects of reduced visitor spending in nearby communities, including regional economic impacts. The study also estimates the changes in consumer surplus, or recreationist benefits