An economic evaluation of water harvesting technology

A economic and financial evaluation is conducted on water harvesting technology comparing it with conventional irrigation resources. The objectives are to estimate comparative profitability of water harvesting and to identify conditions necessary such that water harvesting becomes the preferred technology. Net cash flows from hypothetical 240 ton vineyards using water harvesting technology and conventional water sources are calculated to evaluate economic and financial profitability varying different components of the cost of water, output prices, and discount rates. Results indicate that water harvesting is under present conditions unprofitable compared to conventional sources of irrigation water. The total cost of water from conventional sources required to make water harvesting preferable would have to be six to seven times the 1983 average groundwater prices for southern Arizona. The water harvesting operation is profitable when no other conventional sources of water exist.

azu_td_hy_e9791_1985_406_sip1_w.pdf (3.43 MB)

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