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THE NATURE OF LONG RUN COST SAVINGS DUE TO WATER CONSERVATION 1
Author(s) -
Walski Thomas M.
Publication year - 1983
Publication title -
jawra journal of the american water resources association
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.957
H-Index - 105
eISSN - 1752-1688
pISSN - 1093-474X
DOI - 10.1111/j.1752-1688.1983.tb04608.x
Subject(s) - capital cost , order (exchange) , short run , capital (architecture) , environmental economics , business , operations management , natural resource economics , environmental science , economics , finance , microeconomics , history , archaeology , macroeconomics
ABSTRACT Savings in capital, operation, and maintenance costs of new water supply facilities are referred to as “long run foregone costs.” Any conservation measure leads to reduction of water use or loss, however, significant long run foregone costs are realized only when reductions in size or delays in construction of facilities result. In order to accurately evaluate these costs it is necessary to know which facilities are affected and how they are affected (i.e., eliminated, downsized, or delayed). The effects of several levels of conservation on long run fore gone costs for an actual study are presented and some easy to use equations that may be used to calculate such savings are then derived. Some rules are presented to determine if it is more economical to delay construction or downsize facilities.