Polluted waters affect human health and wildlife, generating big costs for our economies
Polluted waters, particularly those contaminated by raw sewage, spread diseases and carry unpleasant odours. In 2019 alone, water pollution caused 1.4 million of premature deaths. But even with adequate wastewater treatment, as is the case in most OECD countries, pollutants are continuously released into the environment, with waste leaching from landfills or industrial wastewater discharges. Excessive nitrogen releases associated with farming and urbanisation can lead to algal blooms and significant losses of plant and fish species. Residues of the medicines we consume and excrete in our toilets are found in the environment, such as the birth control pill.
A concern for human health? Yes, especially when water is not adequately treated. A concern for ecosystems? Absolutely. Take the example of endocrine disruptors, that end up in water through treated and non-treated wastewater, landfills and agriculture. Even at very low concentrations or in combination with other chemicals, endocrine disruptors can be harmful to fish reproduction.
The cost of water contamination in OECD countries is likely to surpass billions of dollars each year. The World Bank estimated that increased levels of biological oxygen demands alone can hinder downstream GDP growth by 0.82 percentage points, and 1.16 percentage points in middle income countries. Economic costs include health-related expenditures, water treatment costs, reduced property values, the deterioration of ecosystem services, and repercussions on sectors like agriculture, industrial production and tourism.
Addressing water pollution calls for a multi-pronged approach and sustained efforts
The OECD has been working on the economics of water pollution since the 1960s, examining in turn pollution associated with detergents, pesticides in the environment, or lake eutrophication. The OECD was also one of the lead architects of the Polluter Pays Principle back in 1972.
