IDEAS home Printed from https://ideas.repec.org/p/qed/dpaper/4596.html
   My bibliography  Save this paper

Wastewater Reuse to Mitigate the Risk of Water Shortages: An Integrated Investment Appraisal

Author

Listed:
  • Foroogh Nazari Chamaki

    (Department of Banking and Finance, Eastern Mediterranean University, North Cyprus)

  • Hatice Jenkins

    (Department of Banking and Finance, Eastern Mediterranean University, North Cyprus)

  • Majid Hashemipour

    (Department of Economics, Queens University, Kingston, Ontario, Canada)

  • Glenn P. Jenkins

    (Department of Economics, Queens University, Kingston, Ontario, Canada, K7L3N6 and Cambridge Resources International Inc.)

Abstract

This paper evaluates the financial and economic costs of reusing wastewater with reverse osmosis (R.O.) purification systems to mitigate the risks of near potable quality water shortages in an urban water system. A distributional analysis is also undertaken to identify those who bear the externalities of the system. A rich data set is available to conduct an ex-post analysis of such a system operating in Cyprus for several years. The levelized financial cost of the R.O. system if it operates at a 75% utilization rate is USD 1.18/m3, while the levelized economic cost that includes all the externality impacts is USD 1.20/m3. However, the closeness of these two values hides a large set of externalities that affect different groups in society in disparate ways. The analysis shows that reusing wastewater in conjunction with a system of R.O. is a very effective way to mitigate the risks of water shortages in a more extensive water system. It also highlights the importance of the nature of the electricity system that generates the electricity to power the R.O. plant in determining the ultimate economic cost of reusing wastewater.

Suggested Citation

  • Foroogh Nazari Chamaki & Hatice Jenkins & Majid Hashemipour & Glenn P. Jenkins, 2022. "Wastewater Reuse to Mitigate the Risk of Water Shortages: An Integrated Investment Appraisal," Development Discussion Papers 2022-15, JDI Executive Programs.
    • Handle: RePEc:qed:dpaper:4596
    as

    Download full text from publisher

    File URL: http://cri-world.com/publications/qed_dp_4596.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hasan Bicak & Glenn Jenkins, 1999. "Costs And Pricing Policies Related To Transporting Water By Tanker From Turkey To North Cyprus," Development Discussion Papers 1999-07, JDI Executive Programs.
    2. Bahramian, Pejman & Jenkins, Glenn P. & Milne, Frank, 2021. "A stakeholder analysis of investments in wind power electricity generation in Ontario," Energy Economics, Elsevier, vol. 103(C).
    3. Bicak, Hasan Ali & Jenkins, Glenn P. & Ozdemirag, Ali, 2002. "Water flow risks and stakeholder impacts on the choice of a dam site," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 46(2), pages 1-21.
    4. Heinrich Zozmann & Christian Klassert & Bernd Klauer & Erik Gawel, 2022. "Heterogeneity, Household Co-Production, and Risks of Water Services — Water Demand of Private Households with Multiple Water Sources," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 8(01), pages 1-38, January.
    5. Strand, Jon, 2010. "The full economic cost of groundwater extraction," Policy Research Working Paper Series 5494, The World Bank.
    6. Harberger, Arnold C, 1971. "Three Basic Postulates for Applied Welfare Economics: An Interpretive Essay," Journal of Economic Literature, American Economic Association, vol. 9(3), pages 785-797, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Foroogh Nazari Chamaki & Glenn P. Jenkins & Majid Hashemipour, 2023. "Financial, Economic, and Environmental Analyses of Upgrading Reverse Osmosis Plant Fed with Treated Wastewater," Energies, MDPI, vol. 16(7), pages 1-23, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Barnett, William A. & Erwin Diewert, W. & Zellner, Arnold, 2011. "Introduction to measurement with theory," Journal of Econometrics, Elsevier, vol. 161(1), pages 1-5, March.
    2. Graham,Errol George & Tchale,Hardwick & Ndione,Mamadou, 2020. "An Optimal Rice Policy for Sierra Leone : Balancing Consumer and Producer Welfare," Policy Research Working Paper Series 9369, The World Bank.
    3. Evan F. Koenig, 1985. "Indirect Methods for Regulating Externalities Under Uncertainty," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 100(2), pages 479-493.
    4. Russell Pittman, 2007. "Consumer Surplus as the Appropriate Standard for Antitrust Enforcement," EAG Discussions Papers 200709, Department of Justice, Antitrust Division.
    5. Kooten, G. Cornelis van, 2013. "Modeling Forest Trade in Logs and Lumber: Qualitative and Quantitative Analysis," Working Papers 149182, University of Victoria, Resource Economics and Policy.
    6. Stephen Martin, 2019. "The Potential Compensation Principle and Constant Marginal Utility of Income," The Japanese Economic Review, Japanese Economic Association, vol. 70(3), pages 383-393, September.
    7. Udo Ebert, 1986. "Equity and distribution in cost-benefit analysis," Journal of Economics, Springer, vol. 5(1), pages 67-78, December.
    8. Kevin Boyle & Sapna Kaul & Ali Hashemi & Xiaoshu Li, 2015. "Applicability of benefit transfers for evaluation of homeland security counterterrorism measures," Chapters, in: Carol Mansfield & V. K. Smith (ed.), Benefit–Cost Analyses for Security Policies, chapter 10, pages 225-253, Edward Elgar Publishing.
    9. Heckman, James, 2001. "Accounting for Heterogeneity, Diversity and General Equilibrium in Evaluating Social Programmes," Economic Journal, Royal Economic Society, vol. 111(475), pages 654-699, November.
    10. Jeffrey T. LaFrance, 1990. "Incomplete Demand Systems And Semilogarithmic Demand Models," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 34(2), pages 118-131, August.
    11. Kym Anderson & Johan Swinnen, 2008. "Distortions to Agricultural Incentives in Europe's Transition Economies," World Bank Publications - Books, The World Bank Group, number 6502, December.
    12. Martin, Will, 2021. "Tools for measuring the full impacts of agricultural interventions," IFPRI-MCC technical papers 2, International Food Policy Research Institute (IFPRI).
    13. Kaixing Huang & Wenshou Yan & Jikun Huang, 2020. "Agricultural subsidies retard urbanisation in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(4), pages 1308-1327, October.
    14. Abdou, Dr. Dyaa K., 1982. "Government Distribution and Price Policies for Major Subsidized food Commodities in Egypt: An Overview," Working Papers 232845, University of California, Davis, Agricultural Development Systems: Egypt Project.
    15. Syed M. Ahsan & Panagiotis Tsigaris, 2009. "The Efficiency Loss of Capital Income Taxation under Imperfect Loss Offset Provisions," Public Finance Review, , vol. 37(6), pages 710-731, November.
    16. Hashemi, Majid & Jenkins, Glenn & Milne, Frank, 2023. "Rooftop solar with net metering: An integrated investment appraisal," Renewable and Sustainable Energy Reviews, Elsevier, vol. 188(C).
    17. Glenn W Harrison & Thomas F Rutherford & David G Tarr, 1997. "Opciones de Política Comercial para Chile: Una Evaluación Cuantitativa," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 34(102), pages 101-137.
    18. R. M. Parish, 1976. "The Scope of Benefit‐Cost Analysis," The Economic Record, The Economic Society of Australia, vol. 52(3), pages 302-314, September.
    19. John Piggott, 1982. "The Social Marginal Valuation of Income: Australian Estimates from Government Behaviour," The Economic Record, The Economic Society of Australia, vol. 58(1), pages 92-99, March.
    20. Khalid Iqbal, 2017. "Welfare Economics: A Story of Existence," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 20(64), pages 75-83, June.

    More about this item

    Keywords

    reused wastewater; reverse osmosis; water shortage risk; levelized cost; economic cost; emission cost; environmental externalities; distributive analysis;
    All these keywords.

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:qed:dpaper:4596. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mark Babcock (email available below). General contact details of provider: https://edirc.repec.org/data/qedquca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.