Measuring Cost-Effectiveness of Environmental Water Transactions

This report aims to provide context and methodological assistance on the cost-effectiveness of environmental water transactions (EWT) to the various groups that will be involved in this effort. In doing so, we draw on experience with these transactions from the Columbia Basin in the Pacific Northwest, and in states across the western US Specifically, this report aims to assist public funding agencies and project proponents to maximize the cost-effectiveness of investments in projects intended to enhance the quantity of environmental flows. The report provides discussion, guidance and recommendations on cost-effectiveness metrics for environmental water transactions. Detailed instructions for the use of a basic cost-effectiveness metric based on water volumes are laid out, along with an initial testing of the metric to a set of existing transaction data from the Whychus Creek watershed in the Deschutes Basin, Oregon.