Cost–benefit analysis of water-reuse projects for environmental purposes: A case study for Spanish wastewater treatment plants

• Published in: Journal of environmental management Vol. 92; no. 12; pp. 3091 - 3097
• Main Authors: Molinos-Senante, M., Hernández-Sancho, F., Sala-Garrido, R.
• Format: Journal Article
• Language: English
• Published: Kidlington Elsevier Ltd 01.12.2011; Elsevier; Academic Press Ltd
• Subjects: Animal, plant and microbial ecology; Applied ecology; Applied sciences; Assessments; Biological and medical sciences; Conservation of Natural Resources - economics; Conservation, protection and management of environment and wildlife; Cost benefit analysis; Decision making; Directional distance function; Economic analysis; Economic feasibility; Economic impact; Economic impact analysis; Economics; Environment; Environmental benefit; Environmental management; Exact sciences and technology; Feasibility; Feasibility studies; Fundamental and applied biological sciences. Psychology; General aspects; Methodology; Pollution; Project feasibility; Recycling - economics; Resource availability; Shadow prices; Spain; Waste management; Waste recycling; Wastewater reuse; Wastewater treatment; Wastewater treatment plants; Wastewaters; Water analysis; Water management; Water Purification - economics; Water reclamation; Water resources; Water reuse; Water treatment; Water treatment and pollution; Water treatment plants; Spain; Valencia Spain; Spain, Valencia; Directional distance function; Environmental benefit; Economic feasibility; Shadow prices; Wastewater reuse; Cost–benefit analysis; Reuse; Shadow; Cost benefit analysis; Environmental management; Waste water; Case study; Cost-benefit analysis; Environment; Feasibility; Waste water purification; Distance
• ISSN: 0301-4797; 1095-8630
• DOI: 10.1016/j.jenvman.2011.07.023

Water reuse is an emerging and promising non-conventional water resource. Feasibility studies are essential tools in the decision making process for the implementation of water-reuse projects. However, the methods used to assess economic feasibility tend to focus on internal costs, while external impacts are relegated to unsubstantiated statements about the advantages of water reuse. Using the concept of shadow prices for undesirable outputs of water reclamation, the current study developed a theoretical methodology to assess internal and external economic impacts. The proposed methodological approach is applied to 13 wastewater treatment plants in the Valencia region of Spain that reuse effluent for environmental purposes. Internal benefit analyses indicated that only a proportion of projects were economically viable, while when external benefits are incorporated all projects were economically viable. In conclusion, the economic feasibility assessments of water-reuse projects should quantitatively evaluate economic, environmental and resource availability. ► The shadow price methodology is a pioneering approach to quantify the environmental benefit associated with avoiding the discharge of pollutants. ► This approach is based on the directional distance functions and represents an alternative to conventional methods of economic valuation. ► The methodology proposed in this paper allows the assessment of external economic impacts of water-reuse projects. ► The economic valuation of externalities is a very relevant issue in order to carry out realistic feasibility studies of water-reuse projects.