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Assessing the Finance and Economics of Resource Recovery and Reuse Solutions Across Scales

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Wastewater

Abstract

The recovery and reuse of wastewater can contribute to reducing poverty, improving food security, improving nutrition and health, and managing natural resources more sustainability to protect ecosystems and build climate resilient communities. Reusing wastewater generates both private and public benefits, yet care must be taken to minimize environmental harm and risks to human health. Assessing the costs and benefits of wastewater use is challenging for decision making. Financial analysis of wastewater and other reuse options can underpin decision making from a business standpoint, and economic analysis provides the information needed to support public policy decisions. In this chapter, we provide a framework for assessing the finance and economics of wastewater and other reuse options. We examine several components of resource recovery and reuse, including water reuse, energy recovery, and nutrient capture from wastewater as well as fecal sludge and biosolids. We describe the cost-savings and partial cost-recovery made possible by wastewater use and we discuss value propositions for possible business models. Many water reuse solutions do not achieve financial cost recovery but are viable from an economic perspective. However, public agencies can enhance revenue streams by supporting more than water recovery and/or by targeting high-end users.

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Author information

Authors and Affiliations

  1. International Water Management Institute (IWMI), Pretoria, South Africa

    Munir A. Hanjra

  2. International Water Management Institute (IWMI), P.O. Box 2075, Colombo, Sri Lanka

    Pay Drechsel, Javier Mateo-Sagasta & Miriam Otoo

  3. Department of Applied Economics II, University of Valencia, Campus dels Tarongers, 46022, Valencia, Spain

    Francesc Hernández-Sancho

Authors
  1. Munir A. Hanjra
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  2. Pay Drechsel
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  3. Javier Mateo-Sagasta
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  4. Miriam Otoo
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  5. Francesc Hernández-Sancho
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Corresponding author

Correspondence to Munir A. Hanjra .

Editor information

Editors and Affiliations

  1. Int. Water Management Institute (IWMI), Colombo, Sri Lanka

    Pay Drechsel

  2. United Nations University Institute for Water, Env. and Health, Hamilton, Ontario, Canada

    Manzoor Qadir

  3. Agricultural Water Management, Bloomington, Indiana, USA

    Dennis Wichelns

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Hanjra, M., Drechsel, P., Mateo-Sagasta, J., Otoo, M., Hernández-Sancho, F. (2015). Assessing the Finance and Economics of Resource Recovery and Reuse Solutions Across Scales. In: Drechsel, P., Qadir, M., Wichelns, D. (eds) Wastewater. Springer, Dordrecht. https://doi.org/10.1007/978-94-017-9545-6_7

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