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When Water Saving Limits Recycling: Modeling Economy-wide Linkages of Wastewater Use

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  • Luckmann, Jonas
  • Grethe, Harald
  • McDonald, Scott

Abstract

Due to water scarcity problems, the reclamation of wastewater becomes a more and more important water source in many parts of the world. The use of reclaimed wastewater is often fostered, as a cheap and reliable form of water supply, which preserves water resources and at the same time allows to economically making use of sewage. This study presents a novel approach to integrate wastewater recycling in a Computable General Equilibrium model and to link the quantity of reclaimed wastewater produced to the water consumption of economic entities connected to a sewer system, such that a cascading water use can be modeled in a meaningful way. An application to the case of Israel shows that not considering this linkage can lead to an overestimation of compensation effects from wastewater recycling in case economic entities engage in water saving.

Suggested Citation

  • Luckmann, Jonas & Grethe, Harald & McDonald, Scott, 2015. "When Water Saving Limits Recycling: Modeling Economy-wide Linkages of Wastewater Use," 2015 Conference, August 9-14, 2015, Milan, Italy 212161, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae15:212161
    DOI: 10.22004/ag.econ.212161
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    References listed on IDEAS

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    5. Luckmann, Jonas & McDonald, Scott, 2014. "STAGE_W: An Applied General Equilibrium Model With Multiple Types of Water - Technical Documentation," Working Papers 234473, Universitaet Hohenheim, Institute of Agricultural Policy and Agricultural Markets.
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    Agricultural and Food Policy; Environmental Economics and Policy;

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