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The Economics of Desalination and It's Potential Application to Australia

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  • Winter, Tennille
  • Pannell, David J.
  • McCann, Laura M.J.

Abstract

Future concerns about the quality and quantity of Australia’s fresh water supplies from salinisation has necessitated the need for action. Several options exist to secure fresh water supplies for the future, including revegetation, engineering methods, and desalination. Revegetation and engineering options can be very expensive when applied on the scale needed. Desalination has considerable potential as it gives immediate benefits and can be applied anywhere saline water exists, subject to it being suitably cost-effective. This paper shows that, in Australia, based on current prices charged for water, desalination is currently only competitive with traditional water sources in remote locations. There are two ways that this might change. There may be a continuation of advances in technology for desalination, or alternatively the true cost of traditional fresh water sources may rise. Even if the former does not occur, the latter appears certain.

Suggested Citation

  • Winter, Tennille & Pannell, David J. & McCann, Laura M.J., 2002. "The Economics of Desalination and It's Potential Application to Australia," 2002 Conference (46th), February 13-15, 2002, Canberra, Australia 125611, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare02:125611
    DOI: 10.22004/ag.econ.125611
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    File URL: https://ageconsearch.umn.edu/record/125611/files/Winter.pdf
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    References listed on IDEAS

    as
    1. Abdelrassoul, Roshdy A., 1998. "Potential for economic solar desalination in the Middle East," Renewable Energy, Elsevier, vol. 14(1), pages 345-349.
    2. Pannell, David J., 2001. "Dryland salinity: economic, scientific, social and policy dimensions," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(4), pages 1-30.
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    Cited by:

    1. Abdulwahid, Alhasan Ali & Zhao, Hongxia & Wang, Zheng & Liu, Guangdi & Khalil, Essam E & Lai, Yanhua & Han, Jitian, 2022. "Thermo-economic comparison of two models of combined transcritical CO2 refrigeration and multi-effect desalination system," Applied Energy, Elsevier, vol. 308(C).
    2. Nordblom, Thomas L. & Bathgate, Andrew D. & Young, Robert A., 2003. "Derivation of supply curves for catchment water effluents meeting specific salinity concentration targets in 2050: linking farm and catchment level models or “Footprints on future salt / water planes”," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57929, Australian Agricultural and Resource Economics Society.

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