Paying the price for safe drinking water
National survey finds Canadians willing to accept higher water bills
A Canadian Water Network-sponsored survey will provide local governments and provincial regulators with a comprehensive economic model for determining how much taxpayers are willing to spend to keep their communities safe from water-borne diseases and cancer-causing contaminants. It represents the largest social sciences projects ever funded by the CWN.
By Debbie Lawes
Canadians face a higher risk of contracting bladder cancer from chlorine in drinking water than they do of becoming ill or dying from bacteria in tap water. Despite that fact, the majority of Canadians say they worry more about life-threatening pathogens than cancer-causing agents in their municipal water, and they're willing to pay about $200 more each year on their water bill to reduce these perceived health risks.
With funding from the Canadian Water Network (CWN), the U.S. Environmental Protection Agency and other sources, Dr. Diane Dupont of Brock University led the largest and most comprehensive survey of its kind ever taken, involving 1600 Canadians over the summer of 2004. Internet-based surveys and focus groups were used to understand consumer perceptions of the health risks from tap water, whether these fears cause people to spend more on bottled and filtered water, and if Canadians are willing to pay higher water bills to safeguard this essential resource.
"Here's the issue: we put a lot of money into our municipal systems, but people are subverting that by buying their own protection because of perceived health risks. We need consumers to understand the importance of investing in municipal water systems instead of buying bottled water and filtration systems."
Dr. Diane Dupont
Brock University
One of the survey's most startling findings was that perception often trumps scientific fact when it comes to consumers' views of drinking water quality. Scientific studies have shown that most municipal water is as safe - if not safer - than bottled water.
Yet, some 15% of survey respondents said their tap water poses a moderate to serious problem for their families' health, while 24% said their tap water poses a minor health risk. Forty percent of respondents indicated that they did not drink any water coming from their tap unless it was home filtered either with a container filter or an in-tap filtration system. Another one-third said they purchased bottled water because of health concerns over their tap water.
"With the exception of a few small agricultural areas, our municipal water systems are really good. In light of this, we were stunned at the extent that people thought they were protecting themselves by buying all this bottled water and filtering their water. We didn't really know a lot about Canadians' water choices prior to this survey," says Dr. Dupont, an applied micro-economist who has published extensively on the valuation of public resources, including water and fish.
Survey Highlights
- Women, parents with young children and Canadians living in agricultural areas showed the most willingness to pay higher water bills for safer water.
- Canadians' biggest concern with drinking water is microbial contamination (E. coli, cryptosporidium, giardia) rather than the potential cancer-causing effects of chlorine.
- - Family income is not a significant factor in determining whether people are willing to spend more money for safer water.
The "Walkerton Effect"
Why do people see a risk where none exists? Dr. Dupont expects that consumers' perceptions have been influenced by high-profile outbreaks in Walkerton ON (E. coli, May 2000) and North Battleford SK (cryptosporidium, Spring 2001), as well as increased media coverage of water quality issues.
Eroding consumer confidence in the safety of public-supplied tap water compounds the problems cash-strapped municipalities already face in their struggle to keep pace with the mounting repair and maintenance costs for water systems and other aging infrastructure. These municipalities will be encouraged to hear that consumers are willing to pay more for safe water, although as Dr. Dupont cautions, it's important that consumers understand the difference between real and perceived risks.
For example, consumer fears over pathogens such as E. coli and giardia ("beaver feaver") could put pressure on municipalities to use more chlorine to disinfect the water. Unfortunately, chlorine has been implicated in the production of trihalomethanes, which are linked to bladder cancer.
"You don't want to increase a real risk factor in order to minimize a perceived one," she explains. "There are alternative disinfectant technologies, such as ultra-violet light, which are effective at reducing the health risks associated with both cancer and microbial illnesses and deaths. However, these programs are more costly."
Understanding consumers' perceptions is a critical first step in helping municipalities effectively and cost efficiently manage water supply systems. Through her CWN research, Dr. Dupont has also developed an innovative economic model to determine how much more consumers are willing to pay to reduce the risk of pathogens or contaminants in their drinking water.
For example, estimates from the contingent valuation questions in the 2004 survey showed that Canadians arewilling to pay about $157 more on their annual water bill for fewer bladder cancer cases and deaths. When it comes to pathogens, however, they are willing to about $211 more for fewer microbial illnesses and deaths.
Data from the survey will help municipalities make informed choices for infrastructure renewal and to justify these expenses through better consumer education. "Once the risk perceptions are better understood, then municipalities can develop the tools and methods that communicate actual health risks more effectively," says Dr. Dupont.
The survey will also help guide policy decisions and regulators at the provincial and federal levels. "When water guidelines are set, they have to back them up with a benefit-cost analysis. With this survey, we now have the benefit numbers that can be put into a calculation that looks at the net benefit of going to a more stringent regulation, for example."
Preliminary findings from the survey have been published in scientific journals and presented at several conferences. Meanwhile, Dr. Dupont and her team of researchers and graduate students from across Canada are continuing to sift through the data, which have so far supported several Masters and Ph.D. papers. Conducting research under the CWN umbrella has also helped to raise project's project nationally and internationally.
"The CWN has provided national exposure for an area of research (micro-economics) that doesn't tend to get that much attention," says Dr. Dupont. "I've also made new connections with professionals from across Canada and in the U.S. and U.K. that I probably wouldn't have made without the NCE's (Networks of Centre of Excellence) involvement."