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Cost Benefit Analysis of Centralized Wastewater Reuse Systems

Published online by Cambridge University Press:  19 January 2015

Xiao Liang  and
Meine Pieter van Dijk
Xiao Liang
Affiliation:
UNESCO-IHE Institute for Water Education
Meine Pieter van Dijk
Affiliation:
UNESCO IHE Institute for water education
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Abstract

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The present paper carries out a cost benefit analysis of centralized wastewater reuse systems in Beijing. This study consists of two parts: financial analysis and economic analysis. The financial analysis is made from the point of view of plant manager, in which financial benefits and cost is calculated. The economic analysis is made from the point of view of society, in which the economic, environmental and social benefits and cost are determined. The results of financial analysis show that the financial benefits are larger than cost, which means the centralized wastewater reuse systems are financially feasible. It implies that the investment on centralized wastewater reuse systems is profitable. The results of economic analysis show that the ratio of benefit to cost is larger than 1, which means the centralized wastewater reuse systems are economically feasible. It implies that centralized wastewater reuse systems have positive effects on the society. From the point of view of plant manager, centralized wastewater reuse systems could operate in a long term, while from the point of view of government or society, the centralized wastewater reuse systems are worth to be promoted.

Keywords

centralizedcost benefit analysiseconomical analysisfinancial analysiswastewater reuse
Type
Article
Information
Journal of Benefit-Cost Analysis , Volume 3 , Issue 3 , 23 August 2012 , pp. 1 - 30
Copyright
Copyright © Society for Benefit-Cost Analysis 2012

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