Abstract
An important part of environmental degradation is caused by the discharge of untreated or mistreated wastewater. The reuse of water is paramount to the National Strategic Plan for the Water Supply and Wastewater Sanitation Sector in Portugal and Spain. Since centralized treatment systems have proved to be inefficient, tackling environmental issues requires a regional approach. Wastewater treatment plants (WWTPs) mitigate environmental impacts and contribute to the financial savings of other firms. However, the literature evaluating WWTPs’ financial performance and economic sustainability is scarce. The implementation of a resource recovery technology depends heavily on economic viability. Thus, this paper analyses the financial sustainability of 222 WWTPs in the Iberian Peninsula by NUTS II regions in 2016–2019 to assess the region with the best performance and financial stability and provide regional policy implications. Using the SABI database, this research encompasses a numerical and narrative analysis of key financial ratios. Results show that firms in Algarve and La Rioja exhibit higher financial sustainability when compared to other regions. Results can foster enhancements in the governance of regulated utilities.
Highlights
Water is a limited yet renewable resource of high economic value
An important part of the environmental degradation is caused by the discharge of untreated or mistreated wastewater, making the reuse of water a central part of the National Strategic Plan for the Water Supply and Wastewater Sanitation Sector in Portugal and Spain
The assessment of Wastewater treatment plants (WWTPs)’ financial and economic performance should be a concern among scholars and stakeholders that study the economic viability of a resource recovery technology
Summary
Water is a limited yet renewable resource of high economic value. Water scarcity can occur due to climatic, hydrological conditions, or excessive demand. 3% of the planet’s water is freshwater, and about 1.75% is frozen and trapped in glaciers, polar ice caps, and deep-water tables [1], and less than 0.01% is available for direct consumption on the surface of the continents [2]. At this rate, by 2025, about two-thirds of the planet’s population may not have access to drinking water [3]. An important part of the environmental degradation suffered by the planet is caused by the discharge of untreated or mistreated wastewater [5]
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
