Next Article in Journal
Effect of Hydrograph Separation on Suspended Sediment Concentration Predictions in a Forested Headwater with Thick Soil and Weathered Gneiss Layers
Next Article in Special Issue
Economic Assessment of Opportunities for Managed Aquifer Recharge Techniques in Spain Using an Advanced Geographic Information System (GIS)
Previous Article in Journal
Enhancing the Predicting Accuracy of the Water Stage Using a Physical-Based Model and an Artificial Neural Network-Genetic Algorithm in a River System
Previous Article in Special Issue
Water Banks: Using Managed Aquifer Recharge to Meet Water Policy Objectives
Article

The Economics of Groundwater Replenishment for Reliable Urban Water Supply

1
CSIRO Land and Water, Private Mail Bag 2, Glen Osmond, SA 5064, Australia
2
CSIRO Ecosystem Sciences, Private Mail Bag 2, Glen Osmond, SA 5064, Australia
*
Author to whom correspondence should be addressed.
Water 2014, 6(6), 1662-1670; https://doi.org/10.3390/w6061662
Received: 11 March 2014 / Revised: 27 May 2014 / Accepted: 29 May 2014 / Published: 10 June 2014
(This article belongs to the Special Issue Policy and Economics of Managed Aquifer Recharge and Water Banking)
This paper explores the potential economic benefits of water banking in aquifers to meet drought and emergency supplies for cities where the population is growing and changing climate has reduced the availability of water. A simplified case study based on the city of Perth, Australia was used to estimate the savings that could be achieved by water banking. Scenarios for investment in seawater desalination plants and groundwater replenishment were considered over a 20 year period of growing demand, using a Monte Carlo analysis that embedded the Markov model. An optimisation algorithm identified the minimum cost solutions that met specified criteria for supply reliability. The impact of depreciation of recharge credits was explored. The results revealed savings of more than A$1B (~US$1B) or 37% to 33% of supply augmentation costs by including water banking in aquifers for 95% and 99.5% reliability of supply respectively. When the hypothetically assumed recharge credit depreciation rate was increased from 1% p.a. to 10% p.a. savings were still 33% to 31% for the same reliabilities. These preliminary results show that water banking in aquifers has potential to offer a highly attractive solution for efficiently increasing the security of urban water supplies where aquifers are suitable. View Full-Text
Keywords: water allocation; groundwater; drought; risk assessment; economics; Markov switching model; Monte Carlo water allocation; groundwater; drought; risk assessment; economics; Markov switching model; Monte Carlo
Show Figures

Figure 1

MDPI and ACS Style

Gao, L.; Connor, J.D.; Dillon, P. The Economics of Groundwater Replenishment for Reliable Urban Water Supply. Water 2014, 6, 1662-1670. https://doi.org/10.3390/w6061662

AMA Style

Gao L, Connor JD, Dillon P. The Economics of Groundwater Replenishment for Reliable Urban Water Supply. Water. 2014; 6(6):1662-1670. https://doi.org/10.3390/w6061662

Chicago/Turabian Style

Gao, Lei, Jeffery D. Connor, and Peter Dillon. 2014. "The Economics of Groundwater Replenishment for Reliable Urban Water Supply" Water 6, no. 6: 1662-1670. https://doi.org/10.3390/w6061662

Find Other Styles

Article Access Map by Country/Region

1
Only visits after 24 November 2015 are recorded.
Back to TopTop