Ripple Effects of the Economic Benefits of Investment in Water Infrastructure on the Interdependent Socio-Environmental Systems

Water bills, which are rising faster than inflation, are increasing across the US; 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% in 1977 to 4% in 2017. Regional and state expenditure has accounted for a much larger share as federal aid for water infrastructure capital needs has declined. This led that water rates are rising to cover the costs of replacing and upgrading water infrastructure in many communities across the country. They are struggling to meet them through local rates and fees. The major objectives of this research 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 research conducts ripple effects analysis that is the process of predicting the effectiveness of water infrastructure capital investment using historical economic data. This study 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.