Economic Valuation of Aging Water Main Improvements

Abstract

Water main failures cause water disruption, damage and flooding to roads and buildings, inconvenience to daily activities, and significant economic loss. There are few studies on economic valuations needed to justify aging water pipeline improvements. This study aims to assess the benefits of aging pipeline improvements using economic valuation techniques (e.g., damage cost avoided method) for intangible benefits and to develop an economic feasibility study framework for water pipeline improvement programs. The economic feasibility study framework was robust and reliable in a pilot test. Thus, the outcomes could help water utilities conduct better economic feasibility studies on aging pipeline improvements, revealing previously unknown social benefits in monetary values. This framework will promote proactive water pipeline management in order to prevent costly water service outages. The most significant benefit in economic valuation of the study site (i.e., the benefit-cost ratio) was the reduction in public distrust, followed by economic loss and future water demand. The least significant benefit was found to be sustainability improvement through the reduction of CO2 emissions.