methods to estimate cost of environmental damage and costs health and fisheries erkki ikäheimo
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Methods to Estimate Cost of Environmental Damage and Costs
Health and Fisheries
Erkki Ikäheimo
Mediterranean Environmental Technical Assistance Program (METAP)
STRENGTHENING OF THE CAPACITY IN SELECTED METAP COUNTRIES TO ASSESS THE COST OF ENVIRONMENTAL DEGRADATION IN COASTAL AREAS
Health 1,Most important health related environmental costs are
caused by unclean water and through fine particles in the air
The following health risks are considered to be important in coastal areas:
inadequate sanitation,
poor and inadequate water supply,
outdoor air pollution,
indoor air pollution and
pollution due to solid waste.
Mediterranean Environmental Technical Assistance Program (METAP)
STRENGTHENING OF THE CAPACITY IN SELECTED METAP COUNTRIES TO ASSESS THE COST OF ENVIRONMENTAL DEGRADATION IN COASTAL AREAS
Health 2, Quantification of change of environment and valuation
of health require extensive data
The valuing of health effects is based on:
a translation of a level or change of an environmental pollution into a number of cases (quantification) of ill-health or premature mortality,
a determination of the value in monetary units of the health effects.
Monetary valuation expresses in units of money values of:
mortality (death of people),
morbidity (sickliness or sickness rate).
Mediterranean Environmental Technical Assistance Program (METAP)
STRENGTHENING OF THE CAPACITY IN SELECTED METAP COUNTRIES TO ASSESS THE COST OF ENVIRONMENTAL DEGRADATION IN COASTAL AREAS
Health 3,Losses include direct costs, loss of time
and loss of healthy lifeThe data needed to make an estimate of environmental costs of water
related diseases are:
number of cases of each disease occurring in different age groups
number of deaths in different age groups
time lost of patient, care taking and cost of time (lost wages)
number of hospitalization days and cost of a day
number of cases and cost of oral rehydration salts (ORS) in the case of diarrhoeal
number of cases and cost of medication
number of cases and cost of transportation
cost of reduced well being and mortality (e.g in DALYs)
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Method for es-timation
Information Quantity Price, LE LE/year
DALY- under 5 mortality
deaths 35 Estimated years of life (DALY)
lost 1190
GDP/capita 6251
7 440 000
DALY-Child incidence
cases 226130 Estimated years of life (DALY)
lived in disability 68
GDP/capita 6251
425 000
DALY- Adult incidence
cases 339195 Estimated years of life (DALY)
lived in disability 283
GDP/capita 6251
1 769 000
Public facilities costs
Number of patients 110859, which is 18% of all patients suffering for diarrhoea
Total cost is 13 600 000
of which 18% results
2 440 000
Medication ex-penditure
ORT packs 565325 Medicine, price per
package 3
1 696 000
Out-of-pocket expenditure, doctor fee
child cases 101009, only public sector, no infor-mation from private sec-tor
Admission fee 1
101 000
Transportation costs to hospitals
Estimate is 120359 Le and is considered to be
negligible
120 000
Time foregone- caring for ill children
Estimate for hours away from
work 231164
Average wage per
hour 20
4 624 000
TOTAL 18 615 000
Mediterranean Environmental Technical Assistance Program (METAP)
STRENGTHENING OF THE CAPACITY IN SELECTED METAP COUNTRIES TO ASSESS THE COST OF ENVIRONMENTAL DEGRADATION IN COASTAL AREAS
Health 5,Outdoor air caused environmental cost estimates need air monitoring data, demographic data and relationship between concentration and impact
The data needed for estimating environmental costs caused by outdoor fine particulates are:
pollutant and its concentration,
number of people (of different age groups) exposed to the pollutant,
baseline mortality (crude mortality rate = includes all cases of death),
health impact of this exposure through epidemiological assessment (dose response coefficient).
Health 6,Example: Cost of Cardio-Pulmonary Mortality (CPM) estimated based on relationship between fine particles and the disease
TSP concentration is measured to be 155 ug/m3. Concentrations ratios between TSP, PM10 and PM2.5 depend on the sources of fine particles.
The PM2.5 concentration is estimated to be 20% of TSP, 155 * 0.2 = 31 ug/m3.
Cardio-pulmonary mortality was assumed to be 45% of total mortality i.e. 597, which means 597 * 0.45 = 269 cardio-pulmonary deaths.
Dose-response coefficient: 8% in CPM increase for each 10ug increase of PM2.5 concentration over 7.5ug.
Based on dose-response coefficient it is estimated that 52 deaths occur annually as a result of air pollution levels.
One death case is determined to be equivalent to 10 DALY.
52 deaths * 10 DALY = 520 DALYs (6251 Le GDP/capita) or 3.3 million Le.
Mediterranean Environmental Technical Assistance Program (METAP)STRENGTHENING OF THE CAPACITY IN SELECTED METAP COUNTRIES TO ASSESS THE COST OF ENVIRONMENTAL DEGRADATION IN COASTAL AREAS
Mediterranean Environmental Technical Assistance Program (METAP)STRENGTHENING OF THE CAPACITY IN SELECTED METAP COUNTRIES TO ASSESS THE COST OF ENVIRONMENTAL DEGRADATION IN COASTAL AREAS
Fisheries 1,Loss of reduced natural resources causes loss of
direct values and revenues, which causes equivalent losses for economy
To estimate the loss for economy due to lost fish catch can be estimated based on:
volume of lost fish catch,
volume of potential fish catch unsuitable for human consumption,
price of fish.
Fisheries 2,Example: Pollution reduces fish stocks and spoils the
remaining catch causing losses for economy
Assumption: fish catches have declined significantly in 20 years, from approximately 11 000 tonnes in 1976 to 6 378 tonnes in 2004. Average price of fish is 15 LE/kg.
Calculation 1: Loss of value of the fish catch is (11000-6378)*15 LE = 69 LE million.
Calculation 2: If the remaining catch represents a health hazard, which results a loss of 11 000 * 15 LE = 165 million LE.
Mediterranean Environmental Technical Assistance Program (METAP)STRENGTHENING OF THE CAPACITY IN SELECTED METAP COUNTRIES TO ASSESS THE COST OF ENVIRONMENTAL DEGRADATION IN COASTAL AREAS
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