Business models and economic approaches supporting water reuse

Abstract

Water reuse has significant environmental benefits that include mitigating water scarcity, and offering opportunities for revenue generation, especially if more resources than water are recovered, or if treatment can deliver water of potable quality. Options for achieving cost recovery or cost savings range from the promotion of greywater use at household or community level, to inter-and intra-sectoral water swaps, the replenishment of natural resources, on-site value creation through treatment related aquaculture, and reclaimed water sales for different purposes. Value might also be derived from emerging models of water hedging for future reuse markets. A key element of the business model approach is the move toward operational cost-recovery at minimum and profit maximization at best. Although cost recovery is typically low in wastewater use projects and treatment is primarily a ‘social business model,’ several empirical examples highlight opportunities for enhancing the business character of wastewater use by pursuing different value propositions and innovative mechanisms to achieve overall system sustainability.