How to define the value of water

This article is an excerpt from the UN World Water Development Report 2021

　　It has often been stated that water is undervalued, or that we somehow need to recognize the ‘true’ value of water in order to make better decisions about how we protect, share and use it. But what does this really mean? Can the value of water be measured? And if so, how? Who actually gets to determine water’s value? In other words, what is water worth – and to whom?

　　While these questions may appear clear and simple enough, the answers are anything but. The bottom line is that there is no one ‘true’ value of water. Rather, water holds a myriad of values that can differ greatly based on where the water is located, its level of abundance or scarcity, its quality, and its availability. Its values also depend upon the purpose it is used for and the benefits generated by these uses.

　　Some values can be quantified and even monetized, such as when water is used as an input in specific industrial processes or for irrigated agriculture, and expressed as a unit of production (or profit) per volume used. Yet, even across and within different economic sectors, such metrics can easily fall short of providing a comprehensive ‘value’ for water. For example, while food security is of vital importance to any household, community or nation, the value of water for food security is rarely (if ever) factored in when assessing the value of water for agriculture.

　　The values of water to human well-being extend well beyond its role in supporting direct physical life-sustaining functions or economies, and include mental health, spiritual well-being, emotional balance and happiness. The often-intangible nature of these sociocultural values attributed to water regularly defies any attempt at quantification, but they can nevertheless be regarded amongst the highest values.

　　Which leads us to the concept of ‘perception’. Even when water from the same source is used for the same purpose under the same circumstances, its value can be perceived differently from one user to the next. Personal and sociocultural differences often lay at the root of this, with variables such as gender, age, race, class, status, or even belief, playing a determining role. The highly subjective nature of the concept of ‘value’ underscores the need to accommodate the different perspectives of various stakeholders.