Abstract

Abstract Benefit-Cost Analysis (BCA) of reservoirs is standard practice, though with much room for improvement, especially through creative and expanded, but still focused use of sensitivity analysis. The significant and growing scarcity of feasible reservoir sites and groundwater substitutes has led to greater interest in projects that would complement reservoirs and, at the margin, provide a substitute for increased reservoir capacity. An Aquifer Storage and Recovery (ASR) wellfield is one such possible complement-substitute for base-load reservoir capacity. It uses aquifer storage capacity to save wet-year allocations for the driest years, which reduces or avoids price increases and/or administrative curtailment of some water uses. So, the objectives of the article are threefold: (a) to provide an initial examination of the general economics of ASR wellfields; (b) to provide an example; and (c) to demonstrate proposed improvements in BCA methodology.

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