Methods to Estimate Cost of Environmental Damage and Costs Health and Fisheries Erkki Ikäheimo

1. Methods to Estimate Cost of Environmental Damage and CostsHealth and FisheriesErkki Ikäheimo

2. 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.

3. 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).

4. 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 life The 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)

5. Health 4, Example of costs of water related diarrhea

6. 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).

7. 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 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.

8. 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.

9. 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 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.