IDEAS home Printed from https://ideas.repec.org/a/spr/waterr/v25y2011i14p3769-3784.html
   My bibliography  Save this article

Investment Evaluation of Rainwater Tanks

Author

Listed:
  • Anirban Khastagir
  • Niranjali Jayasuriya

Abstract

Melbourne, Australia faced fourteen consecutive years of below average rainfall before drought breaking rains in 2010. Melbournians are also concerned about the significant increase in potable water price in the future where the cost is expected to increase by 100% in 5 years. Stormwater harvested using rainwater tanks is an alternative source of nonpotable water source where potable quality water is not required for use. However, prior to installing rainwater tanks, customers expected to investigate the financial viability of installing tanks. The objective of this study is to carry out cost effectiveness analysis to estimate the payback period, cost effectiveness ratio and the levelized cost of installing rainwater tanks in different geographical locations with significantly varying mean annual rainfall (MAR). The paper also focuses on the impact of the inflation rate, interest rate (discount rate), the period of analysis on the previously stated cost parameters and determines the optimum tank size based on the MAR of the location. The study showed that the payback period was as low as 14 years for a 5kL tank in an area where the MAR is around 1000 mm (discount rate of 10% and inflation rate of 4.2%). The payback period varied considerably with the tank size especially in low rainfall areas (MAR ≤ 450 mm). This emphasizes the importance of selecting the optimum tank size to ensure maximum use of the rainwater to maximize the return on the initial investment. Copyright Springer Science+Business Media B.V. 2011

Suggested Citation

  • Anirban Khastagir & Niranjali Jayasuriya, 2011. "Investment Evaluation of Rainwater Tanks," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 25(14), pages 3769-3784, November.
    • Handle: RePEc:spr:waterr:v:25:y:2011:i:14:p:3769-3784
    DOI: 10.1007/s11269-011-9883-1
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11269-011-9883-1
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11269-011-9883-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Dima Nazer & Maarten Siebel & Pieter Van der Zaag & Ziad Mimi & Huub Gijzen, 2010. "A Financial, Environmental and Social Evaluation of Domestic Water Management Options in the West Bank, Palestine," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 24(15), pages 4445-4467, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rahman, Ataur & Keane, Joseph & Imteaz, Monzur Alam, 2012. "Rainwater harvesting in Greater Sydney: Water savings, reliability and economic benefits," Resources, Conservation & Recycling, Elsevier, vol. 61(C), pages 16-21.
    2. Mokhtar Guizani, 2016. "Storm Water Harvesting in Saudi Arabia: a Multipurpose Water Management Alternative," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 30(5), pages 1819-1833, March.
    3. Deora, Shashank & Nanore, Gyanesh, 2019. "Socio economic impacts of Doha Model water harvesting structures in Jalna, Maharashtra," Agricultural Water Management, Elsevier, vol. 221(C), pages 141-149.
    4. Morales-Pinzón, Tito & Lurueña, Rodrigo & Rieradevall, Joan & Gasol, Carles M. & Gabarrell, Xavier, 2012. "Financial feasibility and environmental analysis of potential rainwater harvesting systems: A case study in Spain," Resources, Conservation & Recycling, Elsevier, vol. 69(C), pages 130-140.
    5. Gabriel Yoshino & Lindemberg Fernandes & Júnior Ishihara & Adnilson Silva, 2014. "Use of rainwater for non-potable purposes in the Amazon," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 16(2), pages 431-442, April.
    6. C. Matos & I. Bentes & C. Santos & M. Imteaz & S. Pereira, 2015. "Economic Analysis of a Rainwater Harvesting System in a Commercial Building," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 29(11), pages 3971-3986, September.
    7. Gabriela Cristina Ribeiro Pacheco & Marcus André Siqueira Campos, 2019. "Real Options Analysis as an Economic Evaluation Method for Rainwater Harvesting Systems," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 33(12), pages 4401-4415, September.
    8. Mokhtar Guizani, 2016. "Storm Water Harvesting in Saudi Arabia: a Multipurpose Water Management Alternative," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 30(5), pages 1819-1833, March.
    9. Xingqi Zhang & Maochuan Hu & Gang Chen & Youpeng Xu, 2012. "Urban Rainwater Utilization and its Role in Mitigating Urban Waterlogging Problems—A Case Study in Nanjing, China," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(13), pages 3757-3766, October.
    10. Aditi Mankad & Meng Chong & Ted Gardner & Ashok Sharma, 2012. "Examining Biophysical and Socio-Demographic Factors across Mandated Tank Users in Urban Australia: A Linking Step towards Achieving Best Practices," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(7), pages 1983-1998, May.
    11. Enedir Ghisi & Pedro Schondermark, 2013. "Investment Feasibility Analysis of Rainwater Use in Residences," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 27(7), pages 2555-2576, May.
    12. C. Vialle & C. Sablayrolles & M. Lovera & M.-C. Huau & S. Jacob & M. Montrejaud-Vignoles, 2012. "Water Quality Monitoring and Hydraulic Evaluation of a Household Roof Runoff Harvesting System in France," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(8), pages 2233-2241, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. do Couto, Eduardo de Aguiar & Calijuri, Maria Lúcia & Assemany, Paula Peixoto & Santiago, Aníbal da Fonseca & Carvalho, Isabella de Castro, 2013. "Greywater production in airports: Qualitative and quantitative assessment," Resources, Conservation & Recycling, Elsevier, vol. 77(C), pages 44-51.
    2. Xueping Gao & Lingling Chen & Bowen Sun & Yinzhu Liu, 2017. "Employing SWOT Analysis and Normal Cloud Model for Water Resource Sustainable Utilization Assessment and Strategy Development," Sustainability, MDPI, vol. 9(8), pages 1-23, August.
    3. Shiguang Chen & Hongwei Sun & Qiuli Chen & Song Liu & Xuebin Chen, 2023. "An Innovative Approach to Predicting the Financial Prospects of a Rainwater Harvesting System," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 37(8), pages 3169-3185, June.
    4. Hang Zheng & Zhongjing Wang & Siyi Hu & Yongping Wei, 2012. "A Comparative Study of the Performance of Public Water Rights Allocation in China," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(5), pages 1107-1123, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:waterr:v:25:y:2011:i:14:p:3769-3784. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.