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When Water Saving Limits Recycling: Modeling Cascading Water Use in a Computable General Equilibrium Framework

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  • Luckmann, Jonas
  • Grethe, Harald
  • McDonald, Scott

Abstract

Due to water scarcity problems, the reclamation of wastewater is an increasingly important water source in many parts of the world. The use of reclaimed wastewater is often advocated, as a cheap and reliable form of water supply, which preserves water resources and is an economically efficient method for processing sewage. This study integrates wastewater recycling in a Computable General Equilibrium model. The novelty of the approach is that the quantity of reclaimed wastewater depends on water consumption by economic agents connected to a sewer system, such that a cascading water use can be modeled. An application to the case of Israel shows that not considering this linkage can lead to an overestimation of the potential of wastewater recycling, especially when economic agents engage in water saving.

Suggested Citation

  • Luckmann, Jonas & Grethe, Harald & McDonald, Scott, 2015. "When Water Saving Limits Recycling: Modeling Cascading Water Use in a Computable General Equilibrium Framework," Conference papers 332622, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:332622
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    References listed on IDEAS

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    1. Roumasset James & Wada Christopher A, 2011. "Ordering Renewable Resources: Groundwater, Recycling, and Desalination," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-29, May.
    2. Anne-Kathrin Faust & Camille Gonseth & Marc Vielle, 2012. "The economic impact of climate driven changes in water availability in Switzerland," EcoMod2012 4177, EcoMod.
    3. Roumasset James & Wada Christopher A, 2011. "Ordering Renewable Resources: Groundwater, Recycling, and Desalination," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-29, May.
    4. Nicholas Rivers & Steven Groves, 2013. "The Welfare Impact of Self-supplied Water Pricing in Canada: A Computable General Equilibrium Assessment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 55(3), pages 419-445, July.
    5. 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.
    6. Saleth, R. Maria & Dinar, Ariel, 1999. "Water challenge and institutional response (a cross-country perspective)," Policy Research Working Paper Series 2045, The World Bank.
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