The issue of environmental security in the context of sustainable development is a highly topical one, being intensively studied by specialists both in terms of its impact on biodiversity and on the protection of non-renewable resources, and in terms of its economic and social impact. The authors aim to quantify the impact of water security on economic and social development based on a new structural equation model and identify changes in the latent variable Water Security Index. (WSI), economic development (ED) and social development (SD) dynamics over the period 2000–2022 for the 27 EU Member States. The methodology is based on the use of structural equation systems and the use of the Independent-Samples Kruskal-Wallis Test to identify the influences of water security measures on economic and social indicators and to assess regional disparities of environmental policy development in relation to economic and social development. The research results will highlight the level of homogeneity of regional water security clusters in Europe and the influence of this approach on economic and social disparities. The results of the study highlight the significant correlation between population density, pollution levels and the costs associated with maintaining water quality. The study shows that high population density and high pollution levels disproportionately increase the financial burden of water quality management. In addition, the analysis highlights the social ramifications of neglecting the sustainability of water sources, particularly in regions experiencing low economic growth. In such scenarios, the negative social impact intensifies, highlighting the importance of sustainable practices. The results allow the formulation of the following public policies: Standardization of the national water quality management framework in line with the European framework; Establishment of organizations to monitor the safety of water sources and the health of the local population; Continuation of innovations in the field of water environment protection; Promotion of social responsibility towards the aquatic environment; Continuation of the process of improving water management governance. The results are useful for economic, environmental and social policy makers to optimise European sustainable development strategies.
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