They can also pose a substantial danger in the case of failure, see e.g. https://en.wikipedia.org/wiki/Vajont_Dam (~2000 casualties, vs Fukushima Daiichi's estimated death toll of ~500).
(I'm a big fan of hydro power, just saying it also has its draw backs)
Also I would assume, the higher up the mountain the dam is build the smaller the impact due to less flora and fauna.
My point: Once you go into small and hard-to-quantify large-population effects, your error margins become ridiculous and you can pull out any conclusion out of your hat...
https://www.research-collection.ethz.ch/bitstream/handle/20.... (page 83, German)
Second most obviously, because they want more power than the river can generate.
Third most obviously, because they want to leave some energy in the river.
[1] https://www.oecd-nea.org/ndd/reports/2010/nea6861-comparing-...