Water and the Economy
There is a direct link between water security and the performance of the economy.
“Water is crucial for the economy. Virtually every industry from agriculture, electric power and industrial manufacturing to beverage, apparel, and tourism relies on it to grow and ultimately sustain their business.” Pacific Institute, Water Scarcity & Climate Change: Growing Risks for Businesses & Investors
The significance of water the Canadian economy is in fact, comparable to agricultural production and other major economic sectors – and is estimated to be between $7.5 and $23 billion annually (Environment Canada, Threats to Water Availability).
The following sections highlight the importance of water to the Canadian economy:
Economic Opportunities
- In 2005, over 82,000 people were employed in the commercial fishing industry - valued at $2.1 billion. At the same time, more than 3.2 million people participated in recreational fishing, contributing $7.5 billion to the Canadian economy (2009 Spring Report of the Commissioner of the Environment and Sustainable Development).
Risks of undervaluing water
Many Canadians underestimate the value of water until they experience a water-related natural disaster and the financial repercussions of poor resource management.
- “Six of the top ten costliest disasters in Canadian history have been droughts, and their effects spread far beyond the agricultural sector. It can take decades for the land to fully recover” (CBC News, Parched Prairies: Latest drought a sign of things to come?)
- The Insurance bureau of Canada (IBC) estimates that insurance companies pay more in claims for flood damages than for fire and theft combined. It points to antiquated municipal infrastructure as the major cause of those damages. Storms in August 2005 in Toronto, for instance, cost the insurance industry $472 million in damages. (Daily Commercial News, Insurance Bureau of Canada calls for national action plan on infrastructure)
