A new report from the Chicago -headquartered Alliance for Water Efficiency (AWE) says that a $13-$15 billion boost to the U.S. economy is possible through water efficiency and investment in water and energy efficiency programs could create 120,000 to 260,000 new jobs while saving between 6.5 and 10 trillion gallons of water.

The economic benefits would be broadly distributed through the national economy, boosting job creation in at least twenty industry sectors.

The report Transforming Water: Water Efficiency as Infrastructure Investment quantitatively examines the short-term economic growth impacts of water efficiency investments, specifically in terms of job creation, income, GDP, national output, water savings, and other benefits. Impacts include:

• Economic output benefits would range between $2.5 and $2.8 billion per billion dollars of direct investment.
• GDP benefits would range between $1.3 and $1.5 billion per billion dollars of investment.
• Employment potential would range between 12,000 and 26,000 jobs per billion dollars of direct investment.

The stakeholder-based non-profit organization, which is dedicated to the efficient and sustainable use of water says investments in water efficiency not only generates economic benefits, they have several added advantages when compared to conventional infrastructure investments. 

According to the AWE, investing in water efficiency now will, over the longer term, boost U.S. manufacturing, help advance national energy policy, promote sustainable resource use, contribute towards GHG emissions reduction, and lessen mounting regional conflicts over water resources.

Americans want Congress and the Trump Administration to prioritize infrastructure investments over any other issue, according to a recent poll commissioned by the Value of Water coalition. Sixty-seven percent of respondents said it should be an extremely or very important focus, and 82 percent supported investment in water infrastructure to ensure a safe, reliable supply of drinking water for all communities.

Mary Ann Dickinson, President and CEO of the Alliance for Water Efficiency commented:

“Investing in infrastructure shouldn’t focus only on conventional and costly capital projects to expand grey infrastructure like treatment plants and reservoirs. Our analysis proves that lower-cost efficiency programs produce strong economic benefits and should be prioritized by policymakers.”

“In addition, unlike many traditional public infrastructure investments, water efficiency programs can be deployed in short time frames and can be readily scaled and adapted.”

The analysis used an input-output model of the U.S. economy to evaluate the near-term economic benefits of large-scale investments in water and energy efficiency programs. It included investments in various water efficiency investments, including indoor and outdoor water use efficiency improvements, commercial, industrial, and institutional efficiency improvements, and water utility system efficiency improvements. Program specifications and cost estimates were based on actual efficiency programs developed for U.S. municipal water utilities.

Additional benefits make water efficiency “no-regret” strategies 

The paper also highlighted important qualitative benefits of investments in water efficiency, including:

• Empower water customers to control their water bills and reduce their costs
• Reinforce the position of U.S. manufacturers as leaders in technology innovation
• Connect directly to communities and involve citizens
• Reduce the use of energy needed to operate water systems; resulting in an increase in national energy independence

“Together with the clear economic benefits we’ve identified, these qualitative gains that water efficiency programs are no-regret investments in our nation’s future,” Dickinson continued. “All communities, regardless of immediate water scarcity issues, should prioritize water efficiency as a public investment.”

Click here to download Transforming Water: Water Efficiency as Infrastructure Investment