Economic Analysis of the Use of Reclaimed Water in Agriculture in Southeastern Spain, A Mediterranean Region

In a global context where agriculture is the major consumer of water, there is a pressing need to look for alternative water resources. In light of there being a lack of studies that compare the use of diverse water alternatives in different crops, the overall objective of this research is to evalua...

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Main Authors: María. J. López-Serrano, Juan F. Velasco-Muñoz, José A. Aznar-Sánchez, Isabel M. Román-Sánchez
Format: Article
Language:English
Published: MDPI AG 2021-11-01
Series:Agronomy
Subjects:
Online Access:https://www.mdpi.com/2073-4395/11/11/2218
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author María. J. López-Serrano
Juan F. Velasco-Muñoz
José A. Aznar-Sánchez
Isabel M. Román-Sánchez
author_facet María. J. López-Serrano
Juan F. Velasco-Muñoz
José A. Aznar-Sánchez
Isabel M. Román-Sánchez
author_sort María. J. López-Serrano
collection DOAJ
description In a global context where agriculture is the major consumer of water, there is a pressing need to look for alternative water resources. In light of there being a lack of studies that compare the use of diverse water alternatives in different crops, the overall objective of this research is to evaluate the impact generated by the use of tertiary water from an economic and financial perspective and compare it with groundwater and desalinated water. To reach this objective, a detailed study of the cost structure of greenhouse investment has been developed. Furthermore, the most traditional indicators for investment profitability have been calculated for the three different water alternatives: tertiary water, groundwater and desalinated water. The cost analyses demonstrate the relative short reach that the price of water has in an area of greenhouse agriculture exploitation, which provides a margin of increasing water costs while still allowing for economic profit. Taking into account the three water resources considered, evidence shows that the use of tertiary water is not only financially and economically viable but is also the best alternative water resource above desalinated water in terms of profitability and sustainability.
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spelling doaj.art-adc3f8fe03504caca4ce823478dcfb412023-11-22T22:02:17ZengMDPI AGAgronomy2073-43952021-11-011111221810.3390/agronomy11112218Economic Analysis of the Use of Reclaimed Water in Agriculture in Southeastern Spain, A Mediterranean RegionMaría. J. López-Serrano0Juan F. Velasco-Muñoz1José A. Aznar-Sánchez2Isabel M. Román-Sánchez3Department of Economics and Business, University of Almería, 04120 Almería, SpainDepartment of Economics and Business, University of Almería, 04120 Almería, SpainDepartment of Economics and Business, University of Almería, 04120 Almería, SpainDepartment of Economics and Business, University of Almería, 04120 Almería, SpainIn a global context where agriculture is the major consumer of water, there is a pressing need to look for alternative water resources. In light of there being a lack of studies that compare the use of diverse water alternatives in different crops, the overall objective of this research is to evaluate the impact generated by the use of tertiary water from an economic and financial perspective and compare it with groundwater and desalinated water. To reach this objective, a detailed study of the cost structure of greenhouse investment has been developed. Furthermore, the most traditional indicators for investment profitability have been calculated for the three different water alternatives: tertiary water, groundwater and desalinated water. The cost analyses demonstrate the relative short reach that the price of water has in an area of greenhouse agriculture exploitation, which provides a margin of increasing water costs while still allowing for economic profit. Taking into account the three water resources considered, evidence shows that the use of tertiary water is not only financially and economically viable but is also the best alternative water resource above desalinated water in terms of profitability and sustainability.https://www.mdpi.com/2073-4395/11/11/2218tertiary waterreclaimed watertreated wastewateragricultureirrigationgreenhouse
spellingShingle María. J. López-Serrano
Juan F. Velasco-Muñoz
José A. Aznar-Sánchez
Isabel M. Román-Sánchez
Economic Analysis of the Use of Reclaimed Water in Agriculture in Southeastern Spain, A Mediterranean Region
Agronomy
tertiary water
reclaimed water
treated wastewater
agriculture
irrigation
greenhouse
title Economic Analysis of the Use of Reclaimed Water in Agriculture in Southeastern Spain, A Mediterranean Region
title_full Economic Analysis of the Use of Reclaimed Water in Agriculture in Southeastern Spain, A Mediterranean Region
title_fullStr Economic Analysis of the Use of Reclaimed Water in Agriculture in Southeastern Spain, A Mediterranean Region
title_full_unstemmed Economic Analysis of the Use of Reclaimed Water in Agriculture in Southeastern Spain, A Mediterranean Region
title_short Economic Analysis of the Use of Reclaimed Water in Agriculture in Southeastern Spain, A Mediterranean Region
title_sort economic analysis of the use of reclaimed water in agriculture in southeastern spain a mediterranean region
topic tertiary water
reclaimed water
treated wastewater
agriculture
irrigation
greenhouse
url https://www.mdpi.com/2073-4395/11/11/2218
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AT juanfvelascomunoz economicanalysisoftheuseofreclaimedwaterinagricultureinsoutheasternspainamediterraneanregion
AT joseaaznarsanchez economicanalysisoftheuseofreclaimedwaterinagricultureinsoutheasternspainamediterraneanregion
AT isabelmromansanchez economicanalysisoftheuseofreclaimedwaterinagricultureinsoutheasternspainamediterraneanregion