Ecosystem services in the Great Lakes.

A comprehensive inventory of ecosystem services across the entire Great Lakes basin is currently lacking and is needed to make informed management decisions. A greater appreciation and understanding of ecosystem services, including both use and non-use services, may have avoided misguided resource management decisions in the past that have resulted in legacies inherited by future generations. Given the interest in ecosystem services and lack of a coherent approach to addressing this topic in the Great Lakes, a summit was convened involving 28 experts working on various aspects of ecosystem services in the Great Lakes. The invited attendees spanned a variety of social and natural sciences. Given the unique status of the Great Lakes as the world's largest collective repository of surface freshwater, and the numerous stressors threatening this valuable resource, timing was propitious to examine ecosystem services. Several themes and recommendations emerged from the summit. There was general consensus that 1) a comprehensive inventory of ecosystem services throughout the Great Lakes is a desirable goal but would require considerable resources; 2) more spatially and temporally intensive data are needed to overcome our data gaps, but the arrangement of data networks and observatories must be well-coordinated; 3) trade-offs must be considered as part of ecosystem services analyses; and 4) formation of a Great Lakes Institute for Ecosystem Services, to provide a hub for research, meetings, and training is desirable. Several challenges also emerged during the summit, which are discussed in the paper.

Defensive spending on tap water substitutes: the value of reducing perceived health risks.

We examine factors that explain consumer spending on tap water substitutes using information from a national survey undertaken with a representative set of Canadian respondents. We develop a model to predict the percentage of households that undertake such spending for the purpose of reducing perceived health risks from tap water consumption. Using results from the model we estimate the magnitude of defensive expenditures to be over half a billion dollars (2010 US$) per year for Canada, as a whole. This is equivalent to approximately $48 per household per year or about $19 per person per year. Residents of Ontario, the province in which an Escherichia coli incident took place in 2000, have the highest willingness-to-pay of approximately $60 per household per year.

Differences in water consumption choices in Canada: the role of socio-demographics, experiences, and perceptions of health risks.

In 2000 and 2001 Canadians were shocked by water contamination events that took place in two provinces. In 2004 we undertook an internet-based survey across Canada that asked respondents to identify in percentage terms their total drinking water consumption according to one of three sources: tap water, bottled water, and home-filtered water (either some type of container or an in-tap filter device). In this paper we investigate the factors that influence these choices and whether choosing to either filter or purchase water is linked to perceptions of health concerns with respect to tap water. A series of one-way analysis of variance (ANOVA) tests suggest that the presence of children in a household and self-reported concern that tap water causes health problems lead to significantly greater consumption of bottled water or filtered water and significantly less tap water consumption. In order to examine these choices in a multivariate framework, we estimate a multinomial logit model. Factors yielding higher probabilities of a respondent being primarily a bottled water drinker (relative to the choice of tap water) include: higher income, unpleasant taste experiences with tap water, non-French-speaking, and being a male with children in one's household. Similar factors yield higher probabilities of a respondent being primarily a filtered tap water drinker. An important finding is that two key variables linking a person's health perceptions regarding tap water quality are significant factors leading to the choice of either filtered tap water or bottled water over tap water. They are: a variable showing the degree of health concerns a respondent has with respect to tap water and a second variable indicating whether the respondent believes bottled water is safer than tap water.

The performance of municipal water utilities: evidence on the role of ownership.

There is growing concern about the operations of the municipal agencies responsible for supplying potable water and treating sewage, spurred by (1) difficulties of maintaining aging capital stocks in times of tightening fiscal constraints, (2) the water pollution generated by these agencies, (3) problems associated with service quality and reliability, and (4) the recognition of the role played by utilities in allocating scarce water resources. These concerns have lead to a heightened scrutiny of these agencies with increased interest in reforming their operations. In particular, this has focused on an examination of whether the ownership of water utilities is a factor explaining their behavior and whether changing their ownership will lead to improvements in their operations. The purpose of this paper was to critically assess what is known regarding the relationship between the ownership and performance of municipal water utilities. There are a number of theoretical arguments that support the prediction that privately owned water utilities will out-perform comparable publicly funded utilities. These arguments draw on property-rights and public choice theories and principle agent models in order to emphasize the difficulty that governments have in monitoring and providing proper incentives for utility managers. Empirical evidence was obtained from the United States, the United Kingdom, and France based on a variety of performance indicators. These data revealed that there was no compelling evidence of private utilities outperforming public utilities or that privatizing water utilities leads to improvements in performance.

The value of good quality drinking water to Canadians and the role of risk perceptions: a preliminary analysis.

Canadian municipal water utilities have had to face many difficulties in the past few years, not the least of which has been an erosion of consumer confidence in the safety of publicly supplied drinking water. This paper discusses how economic theory is used to develop a methodology for determining consumers' or society's preferences for better quality drinking water and how these preferences are expressed in the trade-offs made between money and two different types of risk reductions: mortality and morbidity. These trade-offs are observed by examining actual consumer behavior and/or in structured (hypothetical) market choices. The information gained can be used to structure more efficient water pricing schemes for municipal water utilities and to aid these utilities in their infrastructure investment decisions.

Drinking water management: health risk perceptions and choices in First Nations and non-First Nations communities in Canada.

The relationship between tap water and health has been a topic of public concern and calls for better management in Canada since well-publicized contamination events in two provinces (Ontario and Saskatchewan) in 2000-2001. This study reports the perspectives on health risks from tap water and corresponding use of, and spending on, bottled water in a number of different communities in Canada. In 2009-2010, four First Nations communities (three from Ontario and one from Saskatchewan) and a geographically diverse sample of non-First Nations Canadians were surveyed about their beliefs concerning health risks from tap water and their spending practices for bottled water as a substitute. Responses to five identical questions were examined, revealing that survey respondents from Ontario First Nations communities were more likely than non-First Nations Canadians to believe bottled water is safer than tap water (OR 1.6); more likely to report someone became ill from tap water (OR 3.6); more likely to express water and health concerns related to tap water consumption (OR 2.4); and more likely to spend more on bottled water (OR 4.9). On the other hand, participants from one Saskatchewan First Nations community were less likely than non-First Nations Canadians to believe that someone had become ill from drinking tap water (OR 3.8), less likely to believe bottled water is safer than tap (OR 2.0), and less likely to have health concerns with tap water (OR 1.5). These differences, however, did not translate into differences in the likelihood of high bottled water expenditures or being a 100% bottled water consumer. The paper discusses how the differences observed may be related to water supply and regulation, trust, perceived control, cultural background, location, and past experience.