Quantifying the loss of available groundwater resource associated with point-source contamination in unused aquifers

Cost-benefit analysis can be used to identify the optimum remedial strategy for contaminated groundwater, but requires that the benefits of remedial action be quantified. When the groundwater is located in an unused part of an aquifer, it can be difficult to estimate the economic loss of resource. ‘Option values’, which represent the value placed on groundwater for possible future use, may be used. Calculation of the overall loss requires consideration of the spatial (physical) extent of an aquifer where groundwater use is constrained by the presence of contamination and economic elements. An approach is presented for estimating the spatial element, represented as the annualised abstraction loss from the groundwater resource. Two distinct components have been identified based on the potential restriction on location of a new abstraction well: (1) the direct resource loss, which relates to the contaminated zone of the aquifer within which new abstraction is no longer an option, and, (2) the indirect location loss, which relates to the loss of an opportunity to site a new abstraction well in the surrounding uncontaminated aquifer due to the presence of the plume. Methods are presented for their calculation and the approach is illustrated with a case study.