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Benefit-Cost Analysis of Municipal Rural and Industrial System on Crow Reservation Montana

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  • Reichhardt, Tasha

Abstract

There is currently little research about the economic outcomes for tribes that settle their water rights with the United States. To address this gap, I conduct a benefit-cost analysis on the Crow Reservation’s Municipal, Rural, and Industrial System funded by the Crow Tribe Water Rights Settlement Act of 2010. This project is designed to revitalize the existing community water systems on Crow Reservation and provide community water access to over half of the reservation's residents that otherwise rely on wells, springs, or hauling water. I also discuss the implications this may have for tribes unable or ineligible to settle water rights. Based on the baseline scenario of the cost-benefit model, the benefits of this system accumulate to $413 million (95% CI $339 million - $508 million) at a 3 percent discount rate, $1,464 (95% CI $1,261 million - $1,776 million) at a 0.1 percent discount rate, and $153 million (95% CI $115 million - $194 million) at a 7 percent discount rate. Costs accumulate to $320 million at a 3 percent discount rate, $632 million at a 0.1 percent discount rate, and $196 million at a 7 percent discount rate. The respective benefit-cost ratio for each discount rate is 1.29, 2.31, and 0.78.

Suggested Citation

  • Reichhardt, Tasha, 2023. "Benefit-Cost Analysis of Municipal Rural and Industrial System on Crow Reservation Montana," Undergraduate Research Papers 337207, University of Minnesota, Department of Applied Economics.
    • Handle: RePEc:ags:umapug:337207
    DOI: 10.22004/ag.econ.337207
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    Keywords

    Demand and Price Analysis; Environmental Economics and Policy;

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