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Local conditions and the economic feasibility of urban wastewater recycling in irrigated agriculture: Lessons from a stochastic regional analysis in California

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  • Ami Reznik
  • Ariel Dinar

Abstract

Using treated wastewater for crop irrigation could help mitigate water scarcity. We examine the feasibility of this strategy focusing on the role of local conditions, such as the costs and benefits of alternative wastewater discharge options, and adaptability of agricultural production to water quantity and quality changes. Our approach accounts for uncertainties in the availability of natural water resources and regulatory constraints concerning wastewater discharge. Our analysis of a region in Southern California finds reuse for crop irrigation unwarranted; however, utilizing that practice to support agriculture in the region is economically inexpensive. A sensitivity analysis reveals that diversified agriculture and limitations on the safe and remote discharge of treated wastewater are strong incentives for reuse in agricultural irrigation.

Suggested Citation

  • Ami Reznik & Ariel Dinar, 2022. "Local conditions and the economic feasibility of urban wastewater recycling in irrigated agriculture: Lessons from a stochastic regional analysis in California," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(4), pages 2115-2130, December.
    • Handle: RePEc:wly:apecpp:v:44:y:2022:i:4:p:2115-2130
    DOI: 10.1002/aepp.13198
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    References listed on IDEAS

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    1. Eli Feinerman & Yacov Tsur, 2014. "Perennial crops under stochastic water supply," Agricultural Economics, International Association of Agricultural Economists, vol. 45(6), pages 757-766, November.
    2. Dawson, C.J. & Hilton, J., 2011. "Fertiliser availability in a resource-limited world: Production and recycling of nitrogen and phosphorus," Food Policy, Elsevier, vol. 36(Supplemen), pages 14-22, January.
    3. Ami Reznik & Ariel Dinar & Francesc Hernández-Sancho, 2019. "Treated Wastewater Reuse: An Efficient and Sustainable Solution for Water Resource Scarcity," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(4), pages 1647-1685, December.
    4. Sato, Toshio & Qadir, Manzoor & Yamamoto, Sadahiro & Endo, Tsuneyoshi & Zahoor, Ahmad, 2013. "Global, regional, and country level need for data on wastewater generation, treatment, and use," Agricultural Water Management, Elsevier, vol. 130(C), pages 1-13.
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    6. Kurt Schwabe & Mehdi Nemati & Refat Amin & Quynh Tran & David Jassby, 2020. "Unintended consequences of water conservation on the use of treated municipal wastewater," Nature Sustainability, Nature, vol. 3(8), pages 628-635, August.
    7. Reznik, Ami & Feinerman, Eli & Finkelshtain, Israel & Fisher, Franklin & Huber-Lee, Annette & Joyce, Brian & Kan, Iddo, 2017. "Economic implications of agricultural reuse of treated wastewater in Israel: A statewide long-term perspective," Ecological Economics, Elsevier, vol. 135(C), pages 222-233.
    8. Eli Feinerman & Yakir Plessner & Dafna M. DiSegni Eshel, 2001. "Recycled Effluent: Should the Polluter Pay?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(4), pages 958-971.
    9. Dawson, C.J. & Hilton, J., 2011. "Fertiliser availability in a resource-limited world: Production and recycling of nitrogen and phosphorus," Food Policy, Elsevier, vol. 36(S1), pages 14-22.
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