Americans have come to expect clean, abundant fresh water for a variety of needs: drinking, industry, healthy ecosystems, recreation, and tourism, just to name a few. As the number of Americans living in urban areas continues to grow, domestic and industrial demand for water will increase and compete with other uses of water, such as irrigation for agriculture, one of the largest destinations for fresh water in the United States. These changes are contributing to a pressing issue: the quality of freshwater available in America is becoming increasingly problematic.
Concerns about water quality are urgent. Ecosystems and public health are directly affected by agricultural and urban pollution. The levels of nutrients in surface water and groundwater present a growing threat to public health and local economies, contributing to harmful algal blooms, contaminating drinking water sources, and damaging recreation, tourism, and fishing industries. Emerging contaminants, including pharmaceuticals, additives in personal care products, and engineered nanoparticles, represent a largely unquantified danger to water quality. Many cities’ water quality has declined because of infrastructure decay and vulnerability to severe weather and other stresses, imperiling public health for millions.
The Cost of Quality
Climate change and development activity are shifting the amount and availability of freshwater, affecting our water supply, and straining our aging infrastructure. Affordability and access to safe drinking water are a pressing equity issue. The American Water Works Association estimates that more than $1 trillion must be invested in water delivery infrastructure over the next two decades to maintain current levels of operation, and that the cost of water and sewer infrastructure is rising three times faster than the rate of inflation. Adhering to water quality regulations also add to the costs of water delivery. In the coming decades, costs of water and sewer service may exceed energy costs for the typical American household. Most of the costs will be passed on to consumers, so it is imperative to understand the distributional consequences of water costs and to explore alternative policies that could alleviate financial burdens on low-income households.
But high water prices aren’t all bad—if water costs more, individuals and businesses are more likely to invest in water-saving technology and behaviors, reducing the strain on current water supplies. But according to ongoing RFF research, nearly one in seven US households already faces unaffordable water and sewer service. This creates a conundrum: how can we incentivize efficient water use without burdening lower-income Americans?