Approaches to economic and environmental valuation of domestic wastewater

Abstract

The main purpose of this chapter is to introduce the conceptual frame and methods of valuing the economic and environmental impacts of wastewater use in peri-urban locations. Urbanisation increases the demand for domestic water and supply of wastewater as 80% of the drinking water supplied would return as wastewater. Despite the volumes, economics of wastewater is less understood, especially with regard to the positive and negative impacts of wastewater use for different purposes. This chapter provides a dis-aggregated picture of wastewater generation, use, impacts and their costs and benefits accruing to communities. For the first time the health impacts for human and livestock populations are assessed in a systematic manner. The first section focuses on the importance of wastewater, theoretical framework, wastewater generation/use, externalities associated with wastewater and methodological tools to measure the estimates. These methods include direct and indirect methods of valuation. The second section presents the case study, where some of the methods discussed in part one was applied to estimate the impacts of wastewater use on local communities in peri-urban localities. These impacts include agricultural production, human and livestock health impacts. The concluding section provides some strategies for policy and introduces the Life Cycle Cost Analysis (LCCA) as an alternative and appropriate framework for planning and management of wastewater in a sustainable manner. © 2010 Springer Science+Business Media B.V.