Economic assessment of nature-based solutions as enablers of circularity in water systems

Abstract

The transition from the current linear model of abstraction, use and discharge of water into recycle-reuse under the circular economy (CE) principles is momentous. An analysis of recent literature about the economic impact of linear to circular (L2C) transition is made. The review investigates the economic implications (i.e. cost-benefit) of deployment of enabling technologies, tools and methodologies within the circular water systems. The study is enhanced by presenting the results of our investigation into the policy impact (push-barriers) of L2C transition. As the vehicle for the L2C transition, nature-based solutions (NBS) and its economic and policy implications is discussed. A framework is proposed for the monetary assessment of the costs of investment in NBS technologies, infrastructure and education against the environmental and socio-economic benefits within the policy frameworks. This framework may build the early foundation for bridging the gap that exists for a systematic and objective economic impact (cost-benefit) analysis of L2C transition in the Water sector. This framework will lead to a generic multi-parametric cost model of NBS for Circularity Water Systems.

Keywords: Circular economy; Economic impact assessment; Nature-based solutions; Water system.