Assessing the finance and economics of resource recovery and reuse solutions across scales

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.