Economic Valuation on Water Management in Urban Area

Agustyarum Pradiska Budi, Mugi Rahardjo, Evi Gravitiani

Abstract: Densely populated areas need special attention in water management considering the rate of land conversion the years. Economic valuation can help the city government in providing solutions to minimize land conversion to maintain the sustainability of water supply or future drought threats. Urban water management is needed to regulate the sustainability of water supply. The lack of water catchment areas in urban areas is a threat to the control of water supply. Applications of infiltration wells, retention basin (embung), and greening are alternatives for urban water supply control. This study uses benefit-cost analysis to measure and assess costs and benefits of making alternatives given from the economic side. The results of this study are Net B/C, NPV, IRR, and PBP are feasible on economic analysis.

Keywords: Economic Valuation, Water Management, Benefit-Cost