Economic Analysis in a Water Rights Dispute
Counsel for a party in a water allocation dispute retained Analysis Group to analyze economic issues relevant to questions of allocation. With Analysis Group support, our academic affiliate provided analysis regarding key economic issues affecting resolution of the dispute, including the amount of economic activity associated with water use in the region in question, the likely economic costs of water use restrictions on residential and agricultural water users, and the likely economic benefits of increased water availability to the downstream entity. Our expert concluded that the proposed reallocation of water failed a benefit-cost test, because the costs of the proposed water restrictions would be expected to greatly exceed the benefits that would be derived from those restrictions. Our expert testified in a preliminary stage of the litigation, which resolved in favor of our client.