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Economic analysis and risk-based assessment of the financial losses of domestic rainwater harvesting systems

Severis, Roni M., Silva, Flávia Arcari da, Wahrlich, Júlia, Skoronski, Everton, Simioni, Flávio J.
Resources, conservation, and recycling 2019 v.146 pp. 206-217
discount rate, economic analysis, economic sustainability, prices, rain, risk, risk analysis, water harvesting, water supply
The considerable potential for rainwater harvesting (RWH) opens the door for the study of economic viability and risk indicators in this kind of system. The aim of this paper was to present economic and risk analyses of three RWH systems intended for water supply to single-family residences. The systems were analyzed based on water demand, degree of treatment and distribution arrangement. Economic, sensitivity and risk analyses were performed. The system with the basic treatment of rainwater and distribution by pressure (BX Pressure) was the most economically viable. The Net Present Value and the Intern Return Rate of the BX Pressure system was 480.36 USD and 6.85%, respectively. In the sensitivity analysis, both basic treatment systems were viable at any considered discount rate (0.00%–10.00%) and at a water price ranging from 1.58 USD to 2.72 USD for BX Pressure. In the risk analysis, BX Pressure was also the most viable system, presenting a risk probability of viability of 95.9% at current water prices. Water price, demand, lower discount rates and initial investment costs determined the greater economic viability and lower economic risk associated with domestic RWH systems.