Tariffs and Cost Recovery in Water Reuse

In water stressed areas, water reuse has been identified as a key component of integral water resource management. However, the economics of water reuse projects are a major barrier for their implementation. The objectives of pricing for water demand management, pricing for encouraging the use of re...

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Bibliographic Details
Published in:Water resources management 2013-04, Vol.27 (6), p.1797-1808
Main Authors: Molinos-Senante, M., Hernandez-Sancho, F., Sala-Garrido, R.
Format: Article
Language:English
Subjects:
Atmospheric Sciences
Capital costs
Civil Engineering
Climate change
Consumption
Cost recovery
Earth and Environmental Science
Earth Sciences
Earth, ocean, space
Economics
Efficiency
Environment
Exact sciences and technology
Geotechnical Engineering & Applied Earth Sciences
Hydrogeology
Hydrology
Hydrology. Hydrogeology
Hydrology/Water Resources
Maintenance costs
Studies
Tariffs
Water resources
Water resources management
Water reuse
Water shortages
Water supply
Water treatment
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Summary:In water stressed areas, water reuse has been identified as a key component of integral water resource management. However, the economics of water reuse projects are a major barrier for their implementation. The objectives of pricing for water demand management, pricing for encouraging the use of regenerated water, and pricing for cost recovery are not simultaneously achievable. In this paper, the major constraints hindering the implementation of the cost recovery principle in water reuse have been identified. Moreover, a two-part tariff with a combination of a decreasing and increasing rate structure for the variable charge is proposed as a partial solution to improve water reuse pricing. Finally, some policy recommendations from the perspective of integrated water resource management are formulated.
ISSN:0920-4741
1573-1650
DOI:10.1007/s11269-012-0111-4