title: Incentivizing Decentralized Sanitation: The Role of Discount Rates.
abstract: In adoption decisions for decentralized sanitation technologies, two decision makers are involved: the public utility and the individual homeowner. Standard life cycle cost is calculated from the perspective of the utility, which uses a market-based discount rate in these calculations. However, both decision-makers must be considered, including their differing perceptions of the time trade-offs inherent in a stream of costs and benefits. This study uses the discount rate as a proxy for these perceptions and decision-maker preferences. The results in two case studies emphasize the dependence on location of such analyses. Falmouth, Massachusetts, appears to be a good candidate for incentivizing decentralized sanitation while the Allegheny County Sanitary Authority service area in Pennsylvania appears to have no need for similar incentives. This method can be applied to any two-party decision in which the parties are expected to have different discount rates.
authors.affiliation: The University of Texas at Austin , Department of Civil, Architectural, and Environmental Engineering, 301 E. Dean Keeton St. C8600, Austin, Texas 78712-8600, United States.
authors.forename: Alison
authors.initials: A
authors.lastname: Wood
authors.affiliation: University of Pittsburgh, University Center for Social and Urban Research , 3343 Forbes Ave., Pittsburgh, Pennsylvania 15260, United States.
authors.forename: Michael
authors.initials: M
authors.lastname: Blackhurst
authors.affiliation: U.S. Environmental Protection Agency, Office of Research and Development, Systems Exposure Division, 26 W. Martin Luther King Drive, Cincinnati, Ohio 45268, United States.
authors.forename: Jay L
authors.initials: JL
authors.lastname: Garland
authors.affiliation: The University of Texas at Austin , Department of Civil, Architectural, and Environmental Engineering, 301 E. Dean Keeton St. C8600, Austin, Texas 78712-8600, United States.
authors.forename: Desmond F
authors.initials: DF
authors.lastname: Lawler
mesh_terms: D003362:Cost-Benefit Analysis; D006801:Humans; D008404:Massachusetts; D009042:Motivation; D010414:Pennsylvania; D012499:Sanitation