Drinking water utilities recognize the value of water, and in recent years many have undertaken innovative programs to communicate this critical concept to consumers and other key constituencies. In recent months, EPA has shown expanded interest in developing a systematic, science-based, quantitative analysis of the value of water in the U.S. economy. In several high-profile venues, EPA Administrator Lisa Jackson has extolled the value of clean water and clean water innovation.
Through a new project, titled “Estimating the Value of Water to the U.S. Economy,” EPA is looking to improve and better inform regulatory and other decisions involving water. The planned study seeks to examine water supply and use over a variety of economic sectors, such as agriculture or energy production, to address questions including “How do water quality and supply affect economic productivity in different sectors?” and “How does water contribute to competitive and comparative advantages within the various sectors of the economy?” Included in the study will be a series of white papers on strategic topics to provide greater insight on water’s contributions to the U.S. economy, current analytic capabilities and innovations required to enhance technical analysis capabilities.
In December, the Science Advisory Board’s Environmental Economics Advisory Committee met by teleconference to review EPA’s approach. To insure the agency does not overlook cross-cutting regional variations, such as droughts, that play a major role in how value is assessed, the committee urged EPA to refocus the study to include differences in the way regions across the country consider water valuation. The group also called for EPA to clarify how it will distinguish between non-market use, such as recreation, and market use, and to include a strong focus on public health as a non-market value.
The project is seen as a way to extend and formalize EPA’s endeavors to justify regulatory initiatives and bolster support in a time of economic and political uncertainty. The findings are also expected to reinforce efforts to clarify the scope of the Clean Water Act and to clamp down on nutrient pollution. In addition to white papers, the process will include a review of literature and national statistics, stakeholder workshops and production of both technical and non-technical reports.
A link to more information on “Estimating the Value of Water to the U.S. Economy” is at http://amwa.net/valueofwater.