Water bills, which are rising faster than inflation, are increasing across the U.S., and communities are grappling with aging water systems, fewer water resources, and extreme weather. The federal government’s share of capital investment for water infrastructure has fallen from 31 percent in 1977 to 4 percent in 2017. Regional and state expenditure has accounted for a much larger share as federal aid for water infrastructure capital needs has declined. This means that water rates are rising to cover the costs of replacing and upgrading water infrastructure in many communities that are struggling to meet them through local rates and fees. The major objectives of this presentation are to predict the economic benefits of additional federal support in water infrastructure among interdependent sectors within an economic system for facilitating the federal government's share of capital investment. This study conducts ripple effects analysis which is the process of predicting the effectiveness of water infrastructure capital investment using historical economic data. This presentation attempts to explore how federal capital investment in water infrastructure spreads economic benefits within an interdependent system. It will be conducted at the federal level using the interindustry-macro model that analyzes macro-economic data, including over 400 sectors. Investments that will be coordinated at the federal, state, and local level will help control and stabilize rising water rates across the United States.
1. Discuss the novel methodology for predicting ripple effects from assessing economic impact due to the economic benefits of water asset investment
2. Explore using the interindustry-macro (IM) model that analyzes macroeconomic data, including the water service sector and over 400 sectors
3. Discuss ripple effects on account of the economic benefits of investment in water and wastewater infrastructure
4. Develop an investment economic impact model for the water service sector