Reviewing and Analyzing Wastewater Pricing Methods and Proposing a Suitable Method for Iran

Due to its arid and semi-arid climate the water resources are scares in Iran. In this regard the use of wastewater can be useful as one of the water resource management strategies which helps tackling the water shortage crisis. This study analyzed the literature and wastewater pricing methods. Then,...

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Main Authors: Morteza Tahamipour Zarandi, Fatemeh Vahdati
Format: Article
Language:Persian
Published: Iranian Water Resources Association 2025-02-01
Series:تحقیقات منابع آب ایران
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Online Access:https://www.iwrr.ir/article_212925_cc86b1c78d0b10adf6fb9c6d03322e14.pdf
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author Morteza Tahamipour Zarandi
Fatemeh Vahdati
author_facet Morteza Tahamipour Zarandi
Fatemeh Vahdati
author_sort Morteza Tahamipour Zarandi
collection DOAJ
description Due to its arid and semi-arid climate the water resources are scares in Iran. In this regard the use of wastewater can be useful as one of the water resource management strategies which helps tackling the water shortage crisis. This study analyzed the literature and wastewater pricing methods. Then, by choosing the economic pricing method, it estimated the cost of wastewater production in a wastewater treatment plant in Tehran in 2023 using the engineering economics method to determine the supply-side price. Then, considering that wastewater as a production input to the industrial sector and in order to determine the demand-side price, the final income or economic value of wastewater was calculated using the Residual method and the input-output table for the year 2020 in the industrial sector. The results showed that the cost of one cubic meter of wastewater in the fixed model and in the current model (with inflation) is respectively equivalent to 174,214 Rials and 540,595 Rials. Also, the economic value of each cubic meter of wastewater in the entire industry sector is equivalent to 973,965 Rials. Therefore, considering that the current base price of wastewater in the country is 168,183 Rials per cubic meter, it is observed that the floor price obtained in the fixed model is higher than the price of wastewater in the market, and therefore it is suggested to bring the prices to their real and equilibrium values by reforming the pricing system of this input and by price discrimination between industries.
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spelling doaj-art-bdcd1fcd73b64adb9eb20f2d2d0c3c612025-07-09T16:41:54ZfasIranian Water Resources Associationتحقیقات منابع آب ایران1735-23472025-02-0120411610.22034/iwrr.2025.471562.2775212925Reviewing and Analyzing Wastewater Pricing Methods and Proposing a Suitable Method for IranMorteza Tahamipour Zarandi0Fatemeh Vahdati1Assistant Professor, Faculty of Economics and Political Science, Shahid Beheshti University, Tehran, Iran.Master in Economics, Faculty of Economics and Political Science, Shahid Beheshti University, Tehran, Iran.Due to its arid and semi-arid climate the water resources are scares in Iran. In this regard the use of wastewater can be useful as one of the water resource management strategies which helps tackling the water shortage crisis. This study analyzed the literature and wastewater pricing methods. Then, by choosing the economic pricing method, it estimated the cost of wastewater production in a wastewater treatment plant in Tehran in 2023 using the engineering economics method to determine the supply-side price. Then, considering that wastewater as a production input to the industrial sector and in order to determine the demand-side price, the final income or economic value of wastewater was calculated using the Residual method and the input-output table for the year 2020 in the industrial sector. The results showed that the cost of one cubic meter of wastewater in the fixed model and in the current model (with inflation) is respectively equivalent to 174,214 Rials and 540,595 Rials. Also, the economic value of each cubic meter of wastewater in the entire industry sector is equivalent to 973,965 Rials. Therefore, considering that the current base price of wastewater in the country is 168,183 Rials per cubic meter, it is observed that the floor price obtained in the fixed model is higher than the price of wastewater in the market, and therefore it is suggested to bring the prices to their real and equilibrium values by reforming the pricing system of this input and by price discrimination between industries.https://www.iwrr.ir/article_212925_cc86b1c78d0b10adf6fb9c6d03322e14.pdfpricingresidual methodaverage costreuse of wastewaterwastewater treatment plant
spellingShingle Morteza Tahamipour Zarandi
Fatemeh Vahdati
Reviewing and Analyzing Wastewater Pricing Methods and Proposing a Suitable Method for Iran
تحقیقات منابع آب ایران
pricing
residual method
average cost
reuse of wastewater
wastewater treatment plant
title Reviewing and Analyzing Wastewater Pricing Methods and Proposing a Suitable Method for Iran
title_full Reviewing and Analyzing Wastewater Pricing Methods and Proposing a Suitable Method for Iran
title_fullStr Reviewing and Analyzing Wastewater Pricing Methods and Proposing a Suitable Method for Iran
title_full_unstemmed Reviewing and Analyzing Wastewater Pricing Methods and Proposing a Suitable Method for Iran
title_short Reviewing and Analyzing Wastewater Pricing Methods and Proposing a Suitable Method for Iran
title_sort reviewing and analyzing wastewater pricing methods and proposing a suitable method for iran
topic pricing
residual method
average cost
reuse of wastewater
wastewater treatment plant
url https://www.iwrr.ir/article_212925_cc86b1c78d0b10adf6fb9c6d03322e14.pdf
work_keys_str_mv AT mortezatahamipourzarandi reviewingandanalyzingwastewaterpricingmethodsandproposingasuitablemethodforiran
AT fatemehvahdati reviewingandanalyzingwastewaterpricingmethodsandproposingasuitablemethodforiran