A benefit-cost analysis of an interstate seawater desalination plant shared between California and Nevada
According to the Southern Nevada Water Authority (2002), increasing demands for water in southern Nevada will require the importation of additional water resources. The purpose of this thesis was to examine one possible imported resource: an interstate seawater desalination cooperative between entities in California and Nevada. This cooperative would provide a permanent transfer of Colorado River water from California to southern Nevada, in trade for a capital contribution toward California coastal seawater desalination. This study uses a benefit-cost approach as outlined in Dively and Zerbe (1994). Costs of both entities in Nevada and California were calculated and technical feasibility detailed. Results indicate that seawater desalination is more expensive than existing water sources. However, when compared with other alternative sources, seawater desalination appears competitive and may be a preferred alternative for southern Nevada.
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