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Economic Feasibility Study for Phosphorus Recovery Processes
Authors:María Molinos-Senante  Francesc Hernández-Sancho  Ramón Sala-Garrido  Manel Garrido-Baserba
Institution:(1) Department of Applied Economics II, Faculty of Economics, University of Valencia, Campus dels Tarongers, 46022 Valencia, Spain;(2) Department of Mathematics for Economics, Faculty of Economics, University of Valencia, Campus dels Tarongers, 46022 Valencia, Spain;(3) Catalan Institute for Water Research, Scientific and Technological Park, H2O Building, Emili Grahit 101, 17003 Girona, Spain
Abstract:Phosphorus recovery from wastewater has become a necessity for sustainable development because phosphorus is a non-renewable essential resource, and its discharge into the environment causes serious negative impacts. There are no economic incentives for the implementation of phosphorus recovery technologies because the selling price of rock phosphate is lower than phosphorus recovered from sewage. The methodologies used to determine the feasibility of such projects are usually focused on internal costs without considering environmental externalities. This article shows a methodology to assess the economic feasibility of wastewater phosphorus recovery projects that takes into account internal and external impacts. The shadow price of phosphorus is estimated using the directional distance function to measure the environmental benefits obtained by preventing the discharge of phosphorus into the environment. The economic feasibility analysis taking into account the environmental benefits shows that the phosphorus recovery is viable not only from sustainable development but also from an economic point of view.
Keywords:Cost–benefit analysis  Economic feasibility  Environmental benefits  Phosphorus recovery  Shadow prices  Sustainable development
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