An Online Tool for Estimating Return-on-investment for Water Recycling at Nurseries

Abstract

Water availability, quality, and management, particularly under climate change constraints and fierce competition for water resources, are challenging the sustainability of intensively irrigated nursery crops. We created an online tool to estimate costs and benefits of a water recycling investment at a commercial nursery, given data on the operation input by the user. The online tool returns a “regulatory risk score” based on the user’s drought and pollution risk. Then, using a partial budget approach, it returns net present value of the investment, upfront capital cost, and expected change in annual cash flow. The present article seeks to cross-validate this computer model with results reported in the case study literature. We aggregated data on 38 nurseries and greenhouses profiled in five published studies into a meta study dataset. These data validated the computer tool’s assumptions about the relationship of operation size to total capital cost. Separate simulations on the profitability effects of varying public water rates and price premia due to green marketing corroborated the findings of earlier studies. A major finding of the simulation analysis not previously emphasized in the literature is that capital cost and profit vary significantly with the precise method that is used to size the recapture pond. A “minimalist” approach to this decision is likely to be the most cost-effective, but growers should also keep stormwater runoff and other issues of environmental best practices in mind.

Understanding Greenhouse Growers’ Willingness to Use Municipal Recycled Water on Food Crops: The Need for Tailored Outreach Coupled with Deep Engagement to Increase Adoption

“…Beyond targeting extension outreach to growers' experience with quality problems, experiential learning opportunities through simulation may also be an effective tool in facilitating learning and acceptance of recycled water practices. For example, Gottlieb et al (2022) used an online, interactive simulation platform to help growers better understand the benefits (return on investment) of recycled water use as it pertained to each growers' greenhouse operational needs. Providing this kind of tailored information, directly relevant to the individualized needs of growers in the context of deep engagement, could be a powerful approach to helping the bridge the gap to increased recycled water use in the agricultural sector.…”

Optimal Water Management Strategies: Paving the Way for Sustainability in Smart Cities

“…Strategies that offer favorable ROI prospects can attract private investors and policymakers. However, high upfront costs associated with some strategies may act as barriers, especially if the benefits take time to materialize [74]. 10.…”