A memo from Dr. David Sunding to Carrie Buckman, Environmental Program Manager, Delta Conveyance Office, Department of Water Resources, regarding the economic analysis for the Delta Conveyance Project:

Dr. Jeff Michael recently published a critique of the Delta Conveyance Project (DCP) 2024 cost-benefit analysis (BCA). Dr. Michael is a long-time critic of the project and his work has been supported by various Delta agricultural and environmental interests.

In his recent report, Dr. Michael raises a number of objections to the BCA. As explained in detail in this memo, Dr. Michael’s criticisms reveal some significant misunderstandings about the role of the BCA, the analytical framework, the treatment of risk in the BCA, the choice of economic parameters such as the discount rate, and other important aspects of the BCA.

The economic analysis we conduct is based on industry standards and follows industry best practices. It is based on current, applicable, and documented data and guidelines. It carefully avoids speculation and is deliberately conservative. This memo is intended to help decision makers better understand our approach by correcting Dr. Michael’s errors.

Read the full memo…

DCP_Sundng_Response_BCA criticism