Cost of Environmental Degradation Ministry of Environment Service of Environmental Guidance Viviane Sassine Environmental Specialist SMAP III Regional.

Cost of Environmental DegradationCost of Environmental Degradation

Ministry of EnvironmentService of Environmental Guidance

Viviane Sassine

Environmental Specialist

SMAP III Regional Meeting, Villa Valmer, Marseilles, France

29 June 2009

OutlineOutline

Cost of Environmental Degradation (Why?)

Study on the Cost of Environmental Degradation

in Lebanon (CED-L)

Economic Assessment of Environmental

Degradation due to July 2006 hostilities

Why do we Need to Know the Cost of Neglecting the Environment?

To speak a non-environmentalis

t language

Community Decision makers

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Study on the Cost of Environmental Degradation in Lebanon (CED-L)

Funded & implemented: World Bank- METAP

Implementation region:7 countries: Lebanon, Syria, Algeria, Egypt,

Jordan, Morocco, Tunisia

ObjectivesObjectives

Provide an estimate of the cost of environmental degradation

in Lebanon using the most recent data

Provide analytical framework that can be applied periodically

by professionals in Lebanon to assess the COED over time

Provide a basis for training program for all interested

stakeholders to incorporate assessments of COED into policy

making and environmental management.

Total Cost

565 million USD

2.8- 4.0% GDP

What?

Total Cost

Water Quality

Air Quality

Land & Wild lifeCoastal Zones & Cultural heritage

Solid waste

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Republic of LebanonEconomic Assessment of Environmental Degradation due to July 2006 hostilities

Funded & implemented: World Bank

Prepared by the World Bank upon the request of MoE

Assessment of Environmental Degradation caused by 34 day hostilities on Lebanon

Ultimate goal: 1.Present the overall picture of environmental

degradation2.Identify the natural resources mostly affected by

the Israeli war on Lebanon

Aim and Objectives

Total Cost

729 million USD

3.6% GDP

Overall cost of environmental degradation Overall cost of environmental degradation

Impacts US$ millionmin

US$ millionmax

US$ millionaverage

% of GDP[1]

Waste 206.8 373.5 290.2 1.4

Oil spill 166.3 239.9 203.1 1.0

Water 131.4 131.4 131.4 0.6

Quarries 15.4 175.5 95.5 0.5

Forests 7.0 10.8 8.9 0.0

Total environmental cost caused by hostilities

526.9 931.1 729.0 3.6%

[1] Based on an estimated GDP for 2006 of US$20.5 billion (Economic Intelligence Unit, 2006)

Environmental damages by categories Environmental damages by categories

0

50

100

150

200

250

300

Waste Oil Spill Water Quarries Forests

US$

mill

ion

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WasteWaste

Damage cost (US$ million)

Minimum Maximum

Construction & Demolition Waste 141.8 159.3

Military Waste (UXO) 65.0 214.2

Medical Waste 0.02 0.05

Total 207 373

Total estimated costs

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Oil SpillOil Spill

Mean estimate

Damage Costs: Hotels, Beach resorts, Marinas, Palm Islands Nature Reserve,

Byblos, Restaurants, Commercial fishing, Sea-shore fishing, Cost of oil fuel burnt, …

139.6

Oil Spill Clean Up: Expenses already made, Oiled waste, Monitoring expenses

63.5

Total 203.1

Estimated costs of damage and clean-up due to the oil spill (million US$)Estimated costs of damage and clean-up due to the oil spill (million US$)

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WaterWater

The additional costs of getting water and the cost of reservoir rehabilitation are valued at US$131.4 million.

This figure underestimates the real value of the damage cost linked to water resources, as it does not include the impact of water degradation on health.

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QuarriesQuarries

Overall damage caused by the added pressure on quarries to supply needed aggregate and sand for the reconstruction is estimated to range between US$ 15 and 175 million (or an average of US$95.5 million).

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ForestForest

Overall damage to forests and to national reforestation program ranges between US$7.0 – 10.8 million, with an average of US$8.9 million.

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Water Quality

Reduced Quality of potable water

82 -89 M USD

Health Impacts79 – 105 M USD

175 Million USD/ 1.0-1.2 percent of GDP

Mortality Morbidity

Medical Care

Purchase of Bottled

Water

Air Quality

170 Million USD/ 0.7-1.3 % of GDP

Health Impacts from PM10

61-124 M USD

Health impacts from Lead

28-40 M USD

Health Impacts of Indoor air pollution

10-46 M USD

Quality of Life12 -16 M USD

Land & Wild Life

Degraded Terraced Land

60 – 90 M USD

100 Million USD/ 0.5-0.7 % of GDP

Deterioration of estate prices

around 3 quarries14 – 16 M USD

Deterioration of Tourism opportunities

4-14 M USD

Coastal Zones & Cultural Heritage

Domestic recreational losses

9 – 12 M USD

110 Million USD/ 0.6-0.75 % of GDP

International tourism losses

63-74 M USD

Ecological losses & Non-use value

27-40 M USD

Solid Waste

Mismanagement of Municipal Solid waste

8 M USD

8 Million USD/ 0.05% of GDP

Comparison of 2 studiesComparison of 2 studies

The first study (CED-L) estimated the annual costs of environmental degradation in 2000 at about US$565 million or 3.4% of GDP

A comparison between the two estimates shows that the damage caused by the 34-day hostilities (729 million USD) is almost equivalent to one year of environmental degradation in times peace.

Service of Environmental Guidance Directorate General of EnvironmentMinistry of EnvironmentLazarieh Center, Downtown BeirutP.O. Box 11-2727 Lebanon

Tel: 00 961 (0) 1 976 555Fax: 00 961 (0) 1 976 530

E-mail: [email protected]@moe.gov.lb

Visit: www.moe.gov.lb