Economic Analysis of Wastewater Reuse Systems for Agricultural Irrigation using a System Dynamics Approach

Hanseok Jeong, Kyo Suh, Taeil Jang, Chounghyun Seong, Hakkwan Kim, Seungwoo Park
Journal of the Korean Society of Agricultural Engineers, Vol. 55, No. 2, pp. 9~20, March, 2013

Many studies have reported additional treatment is needed to use wastewater for agricultural purpose. Economic considerations should be taken into account to establish infrastructure for agricultural reuse because of a large amount of water use in irrigation and relatively low water quality requirement. The objective of this study was to conduct economic analysis of wastewater reclamation and reuse systems for agriculture. A system dynamics approach considering complexity and dynamics in the wastewater reuse systems was used for the economic analysis, which are related with social, environmental, and economic problems. Sensitivity and benefit cost analysis for wastewater reuse systems was conducted through the established economic assessment model. The result of sensitivity analysis showed that water resources development and installation cost were the most sensitive for total benefits and costs, respectively. The scenario-based test of the organized economic assessment model shows marginal cost ranges and enables decision-makers to decide reasonable cost for the wastewater reuse systems for agriculture.

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