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Evaluating the costs of desalination and water transport

Author

Listed:
  • Zhou Yuan
  • Richard S.J. Tol

    (Economic and Social Research Institute, Dublin)

Abstract

Many regions of the world are facing formidable freshwater scarcity. Although there is substantial scope for economizing on the consumption of water without affecting its service level, the main response to water scarcity has been to increase the supply. To a large extent, this is done by transporting water from places where it is abundant to places where it is scarce. At a smaller scale, and without a lot of public and political attention, people have started to tap into the sheer limitless resource of desalinated water. This study looks at the development of desalination and its costs over time. The unit costs of desalinated water for five main processes are evaluated, followed by regressions to analyze the main influencing factors to the costs. The unit costs for all processes have fallen considerably over the years. This study suggests that a cost of 1 $/m3 for seawater desalination and 0.6 $/m3 for brackish water would be feasible today. The costs will continue to decline in the future as technology progresses. In addition, a literature review on the costs of water transport is conducted in order to estimate the total cost of desalination and the transport of desalinated water to selected water stress cities. Transport costs range from a few cents per cubic meter to over a dollar. A 100 m vertical lift is about as costly as a 100 km horizontal transport (0.05-0.06$/m3). Transport makes desalinated water prohibitively expensive in highlands and continental interiors, but not elsewhere.

Suggested Citation

  • Zhou Yuan & Richard S.J. Tol, 2004. "Evaluating the costs of desalination and water transport," Working Papers FNU-41, Research unit Sustainability and Global Change, Hamburg University, revised Dec 2004.
  • Handle: RePEc:sgc:wpaper:41
    as

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    File URL: http://www.fnu.zmaw.de/fileadmin/fnu-files/publication/working-papers/DesalinationFNU41_revised.pdf
    File Function: First version, 2004
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    References listed on IDEAS

    as
    1. Thomas Heinzow & Richard S.J. Tol, 2003. "Prediction Of Crop Yields Across Four Climate Zones In Germany: An Artificial Neural Network Approach," Working Papers FNU-34, Research unit Sustainability and Global Change, Hamburg University, revised Sep 2003.
    2. Richard S.J. Tol, 2002. "Technology Protocols For Climate Change: An Application Of Fund," Working Papers FNU-14, Research unit Sustainability and Global Change, Hamburg University, revised Sep 2002.
    3. Tol, Richard S.J., 2005. "Emission abatement versus development as strategies to reduce vulnerability to climate change: an application of FUND," Environment and Development Economics, Cambridge University Press, vol. 10(5), pages 615-629, October.
    4. Heng-Chi Lee & Bruce McCarl & Uwe Schneider & Chi-Chung Chen, 2007. "Leakage and Comparative Advantage Implications of Agricultural Participation in Greenhouse Gas Emission Mitigation," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 12(4), pages 471-494, May.
    5. Richard S.J. Tol, 2002. "Climate, Development And Malaria: An Application Of Fund," Working Papers FNU-16, Research unit Sustainability and Global Change, Hamburg University, revised Sep 2002.
    6. Thomas Heinzow & Richard S.J. Tol, 2003. "Estimates Of The External And Sustainability Costs Of Climate Change," Working Papers FNU-32, Research unit Sustainability and Global Change, Hamburg University, revised Sep 2003.
    7. Jacqueline M. Hamilton, 2002. "Climate and the Destination Choice of German Tourists," Working Papers FNU-15, Research unit Sustainability and Global Change, Hamburg University, revised Aug 2003.
    8. Richard S.J. Tol, 2003. "Adaptation And Mitigation: Trade-Offs In Substance And Methods," Working Papers FNU-33, Research unit Sustainability and Global Change, Hamburg University, revised Sep 2003.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Gary W. Yohe & Richard S.J. Tol, 2007. "Precaution And A Dismal Theorem: Implications For Climate Policy And Climate Research," Working Papers FNU-145, Research unit Sustainability and Global Change, Hamburg University, revised Aug 2007.
    2. Mokhtar Guizani, 2016. "Storm Water Harvesting in Saudi Arabia: a Multipurpose Water Management Alternative," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 30(5), pages 1819-1833, March.
    3. Rehdanz, Katrin & Tol, Richard S.J. & Wetzel, Patrick, 2006. "Ocean carbon sinks and international climate policy," Energy Policy, Elsevier, vol. 34(18), pages 3516-3526, December.
    4. Gary W. Yohe & Richard S.J. Tol & Dean Murphy, 2007. "On Setting Near-term Climate Policy while the Dust Begins to Settle: The Legacy of the Stern Review," Working Papers FNU-129, Research unit Sustainability and Global Change, Hamburg University, revised Mar 2007.
    5. Mokhtar Guizani, 2016. "Storm Water Harvesting in Saudi Arabia: a Multipurpose Water Management Alternative," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 30(5), pages 1819-1833, March.
    6. Tol, Richard S.J., 2007. "Europe's long-term climate target: A critical evaluation," Energy Policy, Elsevier, vol. 35(1), pages 424-432, January.
    7. Richard S.J. Tol, 2006. "Integrated Assessment Modelling," Working Papers FNU-102, Research unit Sustainability and Global Change, Hamburg University, revised May 2006.
    8. Hamilton, Jacqueline M., 2007. "Coastal landscape and the hedonic price of accommodation," Ecological Economics, Elsevier, vol. 62(3-4), pages 594-602, May.
    9. Zhou Yuan & Richard S.J. Tol, 2005. "Water Use in China’s Domestic, Industrial and Agricultural Sectors: An Empirical Analysis," Working Papers FNU-67, Research unit Sustainability and Global Change, Hamburg University, revised Jun 2005.
    10. Pushpam Kumar & Uwe A. Schneider, 2008. "Greenhouse gas emission mitigation through agriculture," Working Papers FNU-155, Research unit Sustainability and Global Change, Hamburg University, revised Feb 2008.
    11. Damerau, Kerstin & Williges, Keith & Patt, Anthony G. & Gauché, Paul, 2011. "Costs of reducing water use of concentrating solar power to sustainable levels: Scenarios for North Africa," Energy Policy, Elsevier, vol. 39(7), pages 4391-4398, July.
    12. Debaere, Peter, 2012. "The Global Economics of Water: Is Water A Source of Comparative Advantage?," CEPR Discussion Papers 9030, C.E.P.R. Discussion Papers.

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    More about this item

    Keywords

    water cost; desalination; water transport; MSF; RO; water shortage;
    All these keywords.

    JEL classification:

    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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