State Water Resources Research Institute Program

Project ID: 2009HI254B
Title: Optimal Groundwater Extraction and Water Recycling
Project Type: Research
Start Date: 3/01/2009
End Date: 2/28/2010
Congressional District: 1
Focus Categories: Economics, Management and Planning, Hydrology
Keywords: water demand management, efficiency pricing, water recycling, water treatment, dynamic optimization, welfare, marginal user cost
Principal Investigator: Roumasset, James A.
Federal Funds: $ 19,419
Non-Federal Matching Funds: $ 39,735
Abstract: We propose an intertemporal optimization model to derive an efficient pricing scheme for the Honolulu water district. The model will allow for recycled water use where different end uses have different water quality requirements. At the margin, water should be recycled until the cost (treatment cost plus damage cost) is exactly equal to the benefit (avoided extraction cost plus marginal user cost). Optimal water recycling combined with efficient pricing will extend the useful life of the aquifer by delaying the need for costly desalination and by inducing demand-side conservation through pricing mechanisms that account for marginal user cost.

Progress/Completion Report, 2009, PDF
Progress/Completion Report, 2010, PDF

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