Journal of
Economics and International Finance

  • Abbreviation: J. Econ. Int. Finance
  • Language: English
  • ISSN: 2006-9812
  • DOI: 10.5897/JEIF
  • Start Year: 2009
  • Published Articles: 309

Full Length Research Paper

Benefit-cost analysis for sustainable water management in Beijing

Xiao Liang
  • Xiao Liang
  • Shenzhen University, Shenzhen, China.
  • Google Scholar

  •  Received: 28 September 2015
  •  Accepted: 05 January 2016
  •  Published: 31 January 2016


Since 2000, large numbers of water reuse systems have been constructed to solve the water scarcity in Beijing. However, the operations of these systems are not well as expected. The paper will conduct an analysis of economic and social impacts of water reuse systems in Beijing. The aim is to find out whether the systems have positive economic and social impacts or not. If the systems bring negative economic and social influence, it will demonstrate that the economic or social factors could be the reasons for the unsuccessful operations of water reuse system. The method of benefit cost analysis is carried out to estimate the economic cost, economic benefits, social cost, and social benefits of water reuse systems, and then a comparative analysis is implemented.  Water reuse in Beijing mainly includes wastewater reuse and rainwater harvesting, which are studied separately in this study. Four wastewater reuse plants and three rainwater harvesting plants containing different sizes of plants are chosen for case study. The study determines that different sizes of water reuse systems have different results on benefits cost comparison. For small wastewater reuse plants, the economic and social benefits are more than cost; while for larger wastewater reuse plants, the economic and social benefits are less than the cost. Conversely, for small rainwater harvesting plants, the economic and social benefits are less than cost; while for large rainwater harvesting plants, the benefits are more than cost. Hence, from the respective of economic and social impacts, building small wastewater reuse plants are more feasible than large plants, while constructing large rainwater harvesting plants are more economically feasible.

Key words: Beijin, water, waste, systems.