Analysis for ENPI countries of Social and Economic Benefits

of Enhanced Environmental Protection

  

WATER – ENPI SouthBjorn Larsen

Environmental EconomistFreelance ConsultantNorway and Lao PDR

e-mail: BJRNLRSN@AOL.COM

Outline of presentation

• Scope of benefit assessment (what parameters are included?)

• Rationale for parameters (why important?)• Methodologies used for benefit assessment• Benefit assessment challenges (what were the

difficulties?)• Methodologies for future benefit assessments• Main results from the benefit assessment• Conclusions and recommendations

28-06-2011 2

Scope: environmental parameters

INFRASTRUCTURE AND PRACTICES• Household connection to safe and reliable piped drinking

water supply• Household connection to sewage network• Improved domestic and personal hygiene practices,

whenever such practices are inadequate for health protection

• Wastewater treatment NATURAL RESOURCES• Surface water quality• Water scarcity28-06-2011 3

Parameter linkages

28-06-2011 4

Drinking water sources

Drinking water treatment practices

Sanitation facilities

Hygiene practices

Delivery;Treatment

Surface water

Groundwater

Water quality

Water quantity (scarcity)

Households External environmentService providers

Potable water

Sewage and wastewater

Methodologies used for the benefit assessment

Parameter Qualitative* Quantitative and monetary

Drinking water, sewage, and hygiene

Yes Health

Surface water quality Yes Welfare*

Wastewater treatment YesIndirectly (surface water quality)

Water scarcity Yes None

28-06-2011 5

* Health, environmental, economic, and social benefits

Wastewater treatment

28-06-2011 6

Rationale for parameter

• The level of waste water treatment if often rather poor and there is substantial room for improvement in many of the countries under study, or in parts of them.

• Poor waste water treatment leads to damage to the natural environment and can substantially affect water quality.

• In water scarcity ENP southern countries, wastewater treatment provides opportunities for re-use.

28-06-2011 7

Overview of key benefits of improved wastewater treatment

28-06-2011 8

Health benefits

Health benefits from cleaner surface water: Recreation (swimming)

Environmental benefits

Reduction in eutrophication in aquatic ecosystems, with due improvements to the ecosystems and associated recovery of fish and other aquatic life.

Economic benefits

Reduced costs of treatment for potable water. Surface water will be more suitable for economic uses such as cooling water and industrial water.Re-use of wastewater saves costs.

Social benefits

Recreational benefits such as nuisance related to odours from direct discharge of sewage in the environment etc.

Water scarcity

28-06-2011 9

Rationale for parameter

• Water resources are distributed unevenly throughout the majority of the ENPI South region, with most of the countries facing local or nationwide water resource constraints.

• Several of the countries are over-extracting groundwater, causing water quality problems and higher pumping costs.

• Water scarcity is affecting agricultural development and contributing to soil salinity.

• Some of the countries, such as Jordan, Israel and Egypt are facing high level of water stress (high water use as a % of water availability)

28-06-2011 10

Overview of key benefits of improved water resource management (reduced scarcity)

28-06-2011 11

Health benefits

Reduced water scarcity reduces water pollution concentrations and thus reduces risk of health effects from its uses

Environmental benefits

Reduced water scarcity reduces water pollution concentrations and thus reduces environmental impacts of pollution

Economic benefits

Reduced water scarcity reduces the cost of water mobilization and increases continuity of water availability for economic sectors

Social benefits Reduced water scarcity (seasonal etc) increases recreational opportunities and value

Methodological steps –quantitative benefit assessment

28-06-2011 12

Steps

1. State of the environment (in reference year)

2. BAU baseline to 2020 (or other target year)

3. Target in 2020 (or other target year)

4. Environmental improvements (difference between target and BAU)

5. Benefit assessment

Household drinking water, sewage and hygiene

28-06-2011 13

Definition of terms

Piped drinking water supply that is safe and reliable at household tap

• Drinking water that does not contain biological, chemical or other agents at concentrations or levels considered detrimental to health according to WHO guidelines for drinking water quality.

• Continuous and plentiful water supply delivered at appropriate and constant pressure to household premises (yard/dwelling)

28-06-2011 14

Definition of terms…continued

Sewage connection• Connection to a closed, piped system for safe removal of

excreta and wastewater from the household and community environment

Hygiene • A procedure or system of procedures or activities used

to reduce microbial contamination on environmental sites and surfaces and the external body in order to prevent the transmission of infectious disease (IFH, 2001), e.g., hand washing with soap; food preparation; other domestic and personal hygiene practices)

28-06-2011 15

Rationale for parameters INFRASTRUCTURE AND PRACTICES

• 88% of diarrheal disease is caused by unsafe water, sanitation and hygiene (WHO). Polluted drinking water also causes many other diseases (e.g., hepatitis A, typhoid, and, in some situations, cancer and other serious health effects)

• Diarrheal disease in young children contribute to poor nutritional status, which in turn has many health and cognitive development impacts

28-06-2011 16

Rationale…continued • Piped water supply to premises (yard/dwelling) and

connection to a sewage network are often the best opportunity to provide households with reliable and safe drinking water and ensure safe and hygienic removal of human excreta and other wastewater pollutants from the household and community environment.

• Piped water supply from a central water intake and distribution outlet allows for treatment of water and monitoring of water quality.

• Connection to sewage network allows for centralized treatment of wastewater before discharging into the environment

28-06-2011 17

Rationale….continued• Most households in the ENPI countries – ranging from

80-100% of households - have what is classified as access to an improved water source.

• However, a smaller percentage of households – ranging from 60-100% - have piped water supply on premises (WHO/UNICEF, 2010).

• Likewise, 70-100% of households have what is classified as improved sanitation facilities (WHO/UNICEF, 2010), while 50-100% of households are connected to a sewage network.

28-06-2011 18

Rationale….continued• Good hygiene practices such as hand washing with

soap at critical junctures (after defecation/going to toilet or cleaning a child feces, before cooking and eating, and before feeding a child) is found in many countries to reduce incidence of diarrhea by as much as 45 percent (Curtis and Cairncross 2003; Fewtrell et al 2005).

• Good hand washing practices are also found to reduce transmission of respiratory infections (Rabie and Curtis 2006; Luby et al 2005).

28-06-2011 19

Targets for 2020Drinking water:• Achieving 100% population connection (except in isolated

rural areas) to reliable and safe piped water supply at household premises.

• Ensuring that the population currently having piped water supply continuously receives reliable and safe water at household premises.

• Providing plentiful and equally safe drinking water from other improved water sources in isolated rural areas.

28-06-2011 20

Targets….continuedSewage connection:• Achieving 100% population connection (except in isolated

rural areas) to a sewage network system.• Upgrading to flush toilet (with sewage connection) for

households with dry toilet or no toilet). • Providing improved sanitation to households currently

without such facilities in isolated rural areas. 

Hygiene:• Improving hygiene practices especially ensuring good hand-

washing with soap at critical junctures wherever such practices are currently inadequate for protection of health.

28-06-2011 21

Overview of key benefits of safe and reliable piped water supply

28-06-2011 22

Health benefits Reduced incidence of disease and mortality. Improved child nutritional status.

Environmental benefitsEconomic benefits

Reduced need for household water storage, point-of-use treatment of water prior to drinking, and purchase of bottled water. Reduced health care expenditure, improved labour productivity and reduced work absenteeism. Reduced water losses and thus costs of providing potable water.

Social benefits Increased convenience

Household treatment of drinking water (%)

Boiling of water Other treatments Appropriate treatment, total

Algeria 1.2% 16.5% 16.4%Egypt 0.4% 4.3% <4%Jordan 3.7% 17.9% 21.2%Syria 1.3% 6.2% 4.5%

28-06-2011 23

Source: DHS and MICS household surveys, 2006-2009. Note: No data from DHS and MICS for Israel, Lebanon, Morocco, Tunisia and West Bank and Gaza.

Overview of key benefits of household connection to sewage network

28-06-2011 24

Health benefits Reduced incidence of disease and mortality. Improved child nutritional status.

Environmental benefits

Sewage collection provides opportunity for proper treatment of wastewater, and thus can reduce pollution of the environment

Economic benefits

Sewage collection and proper treatment of wastewater can provide substantial recreational, tourism, and fishery benefits.

Social benefits Increased household convenience, and reduced odours and nuisance from preventing direct sewage discharge into the local environment.

28-06-2011 25

Piped water supply and

sewage connection

(1)

Piped water supply but not sewage connection

(2)

Not piped water supply but has

sewage connection

(3)

Not piped water supply and not

sewage connection

(4)

Algeria 70% 2% 7% 21%Egypt 40-54% 38-52% 2% 6%Israel 93-100% 0-4% 0% 0-3%Jordan 51% 40% 2% 7%Lebanon 66% 14% 0% 20%Morocco 44% 14% 2% 40%PalestinianTerritories 63% 15% 2% 20%Syria 63% 20% 7% 10%Tunisia 55% 21% 2% 22%

Population coverage of piped water supply and sewage connection, 2008

Note: (1)+(2)=has piped water. (1)+(3)=has sewage connection

Diarrheal disease and mortality reductions from reaching the targets

28-06-2011 26

Current water supply and sanitation

coverageWater and sanitation

improvement

Reduction disease and

mortality Has piped water supply and sewage connection

Improvement in reliability and quality of piped water 15%

Has piped water supply but no sewage connection

a) Improvement in reliability and quality of piped waterb) Sewage connection 35%

Not piped water supply but has sewage connection

Reliable and safe piped water supply to premises 25%

Not piped water supply and no sewage connection

Reliable and safe piped water supply and sewage connection 45%

Nationwide diarrheal disease and mortality reductions from reaching the targets

28-06-2011 27

If already good hygiene

If hygiene is not adequate, and will be

improvedAlgeria 25% 57%Egypt 26-29% 57-60%Israel 15-17% 25-27%Jordan 27% 58%Lebanon 26% 58%Morocco 33% 65%Palestinian Territories

27% 59%

Syria 24% 56%Tunisia 28% 60%

Main results

Magnitude of health benefits depends on:

• Current water, sanitation and hygiene situation

• Baseline health status (child mortality, incidence of morbidity)

28-06-2011 28

Annual benefits, 2020

28-06-2011 29

Annual cases avoided Annual benefits (Million Euros (PPP)) Diarrhoea (million) Deaths Total Total (% GDP) Low High Low High Low High Low HighAlgeria 7.0 16.1 1,313 3,024 1,142 2,630 0.40% 0.93%

Egypt 19.0 43.4 1,158 2,644 1,231 2,809 0.26% 0.60%

Israel 0.6 1.0 1 2 124 227 0.06% 0.11%

Jordan 1.5 3.2 55 119 86 186 0.24% 0.52%

Lebanon 0.7 1.6 11 24 76 169 0.30% 0.30%

Morocco 8.2 16.3 1,410 2,794 672 1,333 0.50% 0.99%

Palestinian Territories 1.2 2.6 88 193 45 99 0.32% 0.70%Syria 4.9 11.3 234 536 250 572 0.24% 0.54%

Tunisia 2.2 4.7 79 168 182 387 0.22% 0.48%

TOTAL 45.3 100.3 4,349 9,504 3,808 8,412 0.28% 0.57%

Surface water quality

28-06-2011 30

Definition of terms

Surface water quality • The parameter measures the level of the quality status of

inland surface water and coastal waters (up to three nautical miles).

• Water quality status is divided into five categories depending on the biological elements present in the water. These categories build on the EU Water Framework Directive (WFD) (EC, 2000) quality status categories: bad, poor, moderate, good and high.

28-06-2011 31

Rationale for parameter

• Surface water quality is important for aquatic ecosystems, economic sectors sensitive to water quality, and for recreation and tourism.

• Improving bathing water quality protects those engaged in swimming from contaminants in the waters. Those that may be at higher risk of disease include the young, the elderly and tourists who do not have immunity against locally occurring endemic diseases (WHO, 2003).

• In many ENP countries surface/coastal waters are very important for the national economy, especially in those countries where tourism activities in coastal areas are a key asset.  

28-06-2011 32

Target for 2020

• Improvement in surface water quality from current conditions to Good Ecological Status (GES), which is the overarching environmental objective of the EU Water Framework Directive (WFD).

28-06-2011 33

Overview of key benefits of improved surface water quality

28-06-2011 34

Health benefits Reduced incidence of disease

Environmental benefits

Reduction in eutrophication and toxic pollution with benefits for aquatic life

Economic benefits

Reduced cost of water to agriculture, industry and other sectors. Improved surface water quality can provide substantial tourism, and fishery benefits. Increased property values.

Social benefits Increased quality of life and recreational benefits

Assessing monetary benefits

• Benefits of improved surface water quality can be quantified in monetary terms by population willingness-to-pay (WTP) for improved water quality

• If WTP studies in subject countries are not available, a benefit transfer approach can be applied from countries in which such studies do exist

• The benefit transfer involves adjusting WTP for income and other characteristics that determine WTP

• The benefit for ENP countries relies on a benefit transfer of population WTP from the UK

28-06-2011 35

Annual benefits, 2020*

28-06-2011 36

WTP results in 2020, € PPP per HH

year

Aggregated benefits WTP in 2020, € PPP million

Benefits relative to GDP in 2020

%COUNTRY Lower upper lower upper lower upper

Algeria 41.2 188.5 283.7 1,296.6 0.10% 0.46%Egypt 31.2 173.9 669.1 3,728 0.14% 0.80%Israel 67.1 240.0 159.5 571.1 0.08% 0.27%

Jordan 47.3 185.4 66.7 261.6 0.18% 0.72%Lebanon 59.6 214.4 59.4 213.6 0.13% 0.45%Morocco 34.9 160.7 242.5 1,117.5 0.19% 0.86%

Palestinian Territories

- - - - - -

Syria 34.9 159.9 170.4 781.6 0.16% 0.74%Tunisia 41.7 184.6 103.8 459.4 0.13% 0.57%

TOTAL 1,755 8,429 0.14% 0.61%

* By Manuel Lago (Ecologic)

Conclusions

• The potential benefits of improvements in the water parameters assessed in this study are substantial.

• Annual quantified benefits amount to € PPP 5.5 - 17 billion in year 2020.

• These benefits are equivalent to an average 0.4-1.1% of GDP in 2020

• Benefits (% of GDP) are highest in Morocco and lowest in Israel.

• Additionally, there are many non-quantified benefits.

28-06-2011 37

Implications of the benefit assessment

• Rehabilitate and upgrade existing piped water supply to increase safety and reliability of potable water

• Extend piped water supply with priority to communities with water quality problems from non-piped water sources

• Rehabilitate existing sewage networks to prevent contamination of potable water supply and the environment

• Extend sewage networks (sewage collection and removal) to currently unserved communities

28-06-2011 38

….continued

• Assess and identify opportunities for hygiene improvements, especially as benefits young children

• Increase efforts to develop and implement integrated water resources management plans, especially in high priority river basins (including wastewater treatment, addressing water scarcity, etc)

28-06-2011 39

Thank you for

your attention!

28-06-2011 40