EPA has issued a report on the economic value of water, underscoring the importance of the resource to nearly every sector but adding that significantly more research is needed to accurately quantify waters benefits to the economy.
The report, "The Importance of Water to the U.S. Economy," supports utility claims that rates do not reflect the full cost to deliver a reliable supply of clean water and says this "may encourage inefficient and potentially unsustainable use of the resource."
A users willingness to pay for water is dependent on several factors, according to the report. These include: the quantity available from a source, where and when the water can be supplied, the likelihood that supply will be interrupted, and whether the quality of the water is sufficient for the intended use.
EPA calls for additional research from the U.S. Geological Surveys National Water Census, as well as research to integrate water management decisions into complex economic models.
The report is available online at http://water.epa.gov/action/importanceofwater.