Water Resources Research Act Program

Details for Project ID 2009HI254B

Optimal Groundwater Extraction and Water Recycling

Institute: Hawaii
Year Established: 2009 Start Date: 2009-03-01 End Date: 2011-02-28
Total Federal Funds: $38,838 Total Non-Federal Funds: $79,470

Principal Investigators: James Roumasset

Project Summary: 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.