methods to estimate cost of environmental damage and costs health and fisheries erkki ikäheimo

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.



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).



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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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



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


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.


methods to estimate cost of environmental damage and costs health and fisheries erkki ikäheimo

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