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ECONOMIC/FINANCIAL ANALYSIS OF URBAN WATER QUALITY MANAGEMENT PROBLEMS
Citation:
Heaney, J. ECONOMIC/FINANCIAL ANALYSIS OF URBAN WATER QUALITY MANAGEMENT PROBLEMS. U.S. Environmental Protection Agency, Washington, D.C., EPA/600/2-80/187.
Description:
Procedures for evaluating the technical, economic, and financial aspects of urban water quality management planning problems are presented. Accepted principles of benefit-cost analysis are used to conduct the economic analysis. Benefits are measured as the reduction in damages as controls are employed. A case by case procedure for examining wet-weather impacts is recommended. Production functions which provide a summary characterization of the performance of the control units, are presented for a relatively wide variety of control options. The economic optimization procedures utilize the production functions along with associated cost data to find the most cost-effective solution. The financial analysis combines existing procedures with new concepts from N person game theory to provide improved methods for solving this important problem. Several case studies are presented to illustrate the procedure.