Global Environmental ImpactGlobal Environmental Impact

ENVRE 115ENVRE 115

Fall 2009Fall 2009

Announcements

Book Report description emailed to all enrolled students and available on course website

Visit the course blog and contribute to the discussions

Graduate students will be assigned to their groups this week

Homework grades will be emailed to students within 2 weeks of due date

Upcoming talk on Thursday, 24 September from 1-2 pmDr. Ayad Muhsen Altaai, General Coordinator, Global Initiative Towards a Sustainable Iraq (GITSI) - which is a global partnership contributing to the sustainable development in Iraq, 2008-2018 - will be speaking at the Environmental Sciences and Engineering, School of Engineering and Applied Sciences, Pierce Hall, Conference Room-114, 29 Oxford Street

AgendaAgenda

Connection between infrastructure development, Connection between infrastructure development, environmental impacts, and economic growthenvironmental impacts, and economic growth

Steps of an environmental impact assessment Steps of an environmental impact assessment and the project cycleand the project cycle

Case Study: Natural gas pipeline, PRCCase Study: Natural gas pipeline, PRC

Can investing in environmental services reduce Can investing in environmental services reduce poverty?poverty?

Balancing Infrastructure Development and Environmental

Impacts

Framework

DemographicProcesses

DemographicProcesses

Population

EnvironmentEconomicProcesses

EconomicProcesses

Wastes

NaturalProcesses

NaturalProcessesCapital Stock

Waste flows

Recycling

Leakage

Goods andservices

Resources andservices

Resourcesand services

“To say that infrastructure development has impact is to state the obvious. No industrial country has advanced to such status without developing solid infrastructure facilities. And no low-income country has managed to escape poverty in the absence of infrastructure.

In addition to economic growth, infrastructure development has a very tangible impact on people's daily lives, and especially on the lives of poor people ”

- Liqun JinVice President, ADB

Infrastructure developmentInfrastructure development Economic GrowthEconomic Growth

Poverty reduction and economic development depend on sustained growth

Growth depends on productive activities supported by roads, railways, seaports and airports, power generation and transmission and other infrastructure services

Improve Infrastructure Improve Infrastructure Decrease Poverty Decrease Poverty

Predicated on two assumptions:

1. Infrastructure development is managed well and in a cost-effective manner so as to reduce constraints to economic activities by lowering the cost of doing business and creating job opportunities

2. Direct revenue generation from infrastructure projects are allocated to improving human capital (education, health, and other vital social services)

Well-designed and well-managed infrastructure investment allows a government to broaden the horizons and raises the intellectual capital of the society as a whole

– Mobilizes resources which stimulates

financial sector development

institutional capacity building

human resources development

legal and regulatory buildup

Improve Infrastructure Improve Infrastructure Build Capacity Build Capacity

Current ChallengesCurrent Challenges

Per capita GDP in developing Asia as a whole grew on average by 6% a year from 1999-2004 (and only 3.1%/annum for the poorest countries)

Realities in developing Asia– 36% of households have no access to electricity– 31% of the rural population has no access to all-

season roads– 90% have no telephone connections– 20% have no access to safe drinking water– 67% have no access to sanitation

http://web.ulib.csuohio.edu/SpecColl/croe/accfire.html

Cuyahoga River

Valley of the Drums

Shattered the assumption that the environment has an infinite capacity to absorb pollutants

1962

Origins of environment regulation in US

US EPA established in 1970 – Established in response to the growing public demand for

cleaner water, air and land– Mission is to protect human health and to safeguard the

natural environment

1970: Clean Air Act

1972: Pesticide Control Act, Federal Water Pollution Act, Ocean Dumping Act & DDT banned

1973: Industrial discharge permits issued & lead phase out

1974: Safe Drinking Water Act

1975: Bans heptachlor and chlordane

1976: Toxic Substance Control Act & Resource Conservation and Recovery Act

Environmental Transition

Environmental transition– At some point of economic development, the level of resource and

environmental pressure is starting to go down (Kuznet’s Curve)

Pollution control– Several legislation were put forward to reduce environmental impacts,

notably in the industrial sector.

Process changes– Industrial processes generating high pollution levels were changed

because of legislation and increasing efficiency.

Structural economic changes– Pollution intensive industrial activities have been relocated in developing

countries.

Environmental Transition

Level of Development

Le

vel o

f E

nvi

ron

me

nta

l Pre

ssu

re

Pollution control

Process changes andefficiency increases

Structural economicchanges anddematerialization ofconsumption patterns

Developing countries Developed countries

The Probo Koala, the tanker accused of delivering a slick, highly toxic cocktail of petrochemical waste and caustic soda to Abidjan.NY Times - http://www.nytimes.com/slideshow/2006/10/01/world/20061002_IVORY_SLIDESHOW_1.html

A worker helping to clean up toxic sludge last week in Abidjan, Ivory Coast. The sludge, dumped from a tanker, has been blamed for eight deaths. NY Times - http://www.nytimes.com/slideshow/2006/10/01/world/20061002_IVORY_SLIDESHOW_1.html

A boy searched for aluminum last week in a dump in Akouedo, a community where much of the toxic material was dumped last month. An estimated 400 to 600 tons of petrochemical waste was dumped in the city.

Candace Feit for The New York Times

Environmental Environmental ImpactImpact

AssessmentAssessment

What is an Environmental Impact Assessment (EIA)?

“an important procedure for ensuring that the likely effects of new development on the environment are fully understood and taken into account before the development is allowed to go ahead”

(DETR and National Assembly for Wales, 1999)

Origins and History of EIAOrigins and History of EIA

In United States

US National Environmental Policy Act (NEPA) of 1970

Requires federal agencies to consider environmental impacts of their proposed actions and reasonable alternatives to those actions

Goals of NEPA– Each generation is a trustee of the historical, cultural, and natural

environment for succeeding generations– Assure a safe, healthful, productive, and aesthetically and culturally

pleasing surroundings for all Americans– Attain the widest range of beneficial uses of the environment without

degradation, risk to health or safety, or other undesirable and unintended consequences

– Enhance the quality of renewable resources

Origins and history of EIA

In Europe

In 1977 the European Commission began drafting a directive on EIA and finally published a proposal in 1980

Directive 85/337/EEC on the assessment of the effects of certain public and private projects on the environment – the ‘EIA Directive’ was adopted in July 1985 and Member States had until 3 July 1988 to implement its requirements

European Commission’s web pages on environmental assessment http://europa.eu.int/comm/environment/eia/home.htm

International BanksInternational BanksWorld Bank requires EIAs as of 1989World Bank requires EIAs as of 1989

– Apply to any Bank-financed or implemented projectsApply to any Bank-financed or implemented projectsNatural environmentNatural environment

Human health and safetyHuman health and safety

Social aspects (involuntary resettlement, indigenous Social aspects (involuntary resettlement, indigenous peoples, and physical cultural resources)peoples, and physical cultural resources)

Transboundary and global environmental aspectsTransboundary and global environmental aspects

– Designed to be used as a tool to improve project Designed to be used as a tool to improve project performance and sustainability performance and sustainability

Asian Development Bank requires environmental Asian Development Bank requires environmental assessmentsassessments– http://www.adb.org/Projects/reports.asp?key=reps&val=ERDhttp://www.adb.org/Projects/reports.asp?key=reps&val=ERD

Guiding Principles of EIAGuiding Principles of EIA

EIA “ a systematic processof identifying futureconsequences of a currentor proposed action”

Transparency

Certainty

Participation

Practicality

Feasibility

Cost-effective

CredibilityAccountability

8 Guiding Principles

Project CycleProject Cycle

Source: ADB, 1997

1. Project Concept/Identification1. Project Concept/Identification

Initial stage of the project planningInitial stage of the project planning

– Basic nature of the project is known including Basic nature of the project is known including the site(s) where the project is being the site(s) where the project is being proposed to be implementedproposed to be implemented

– ““Screen” project to determine if project Screen” project to determine if project requires a full EIArequires a full EIA

ScreeningScreening

ProjectProject

EnvironmentalEnvironmentalimpactimpact

EconomicEconomicimpactimpact

SocialSocialimpactimpact

Screening• Identify environmental issues of concern• Determine whether EIA is needed• Establish need for project

Not requireEIA

RequireEIA

Impactsunclear

Threshold criteria Impact criteria

• Size • Location • Output • Cost/Finances• Environmental effects • etc.

• Significant but easily identifiable impacts

• Significant impacts • Sensitive area

Methods for Scoping

B. Pre-feasibility StageB. Pre-feasibility Stage

Making a plan for public involvement

Identifying major issues of public concern

Establishing priorities for environmental assessment

Developing a strategy for addressing priorities

Evaluating the significance of issues

Distribution of information to interested parties

““Scope” the project to identify issues/impacts for investigationScope” the project to identify issues/impacts for investigation

Initial Assessment of ImpactsInitial Assessment of Impacts

Existing or baseline data:Existing or baseline data:

provide a description of the status and trends of provide a description of the status and trends of environmental factors (e.g., air pollutant environmental factors (e.g., air pollutant concentrations) against which predicted changes can concentrations) against which predicted changes can be compared and evaluated in terms of importancebe compared and evaluated in terms of importance

provide a means of detecting actual change by provide a means of detecting actual change by monitoring once a project has been initiated monitoring once a project has been initiated

C. Feasibility StageC. Feasibility Stage

Conduct the EIA and determine if the project is viableConduct the EIA and determine if the project is viable

Magnitude of impact Magnitude of impact - - indicate whether the impact is irreversible indicate whether the impact is irreversible or, reversible and estimated potential rate of recoveryor, reversible and estimated potential rate of recovery

Extent of impact Extent of impact - - spatial extent of impacts should be determinedspatial extent of impacts should be determined

Duration of Impact Duration of Impact - - arising at different phases of the project cycle arising at different phases of the project cycle and the length of the impact [e.g. short term (during construction-9 and the length of the impact [e.g. short term (during construction-9 yrs), medium term (10-20 yrs), long term (20+ yrs)]yrs), medium term (10-20 yrs), long term (20+ yrs)]

D. Implement & Audit the ProjectD. Implement & Audit the Project

The EIA is a "reference" guide during implementation

Outlines mitigation strategies and monitoring schemes

Preventative measures - reduce potential adverse impacts before occurrence

Compensatory measures - compensate for unavoidable adverse impacts

Corrective measures - reduces the adverse impact to an acceptable level

Recommendations can form a part of contract tender

Audit project after completion to identify lessons learned

E. Environmental MonitoringE. Environmental Monitoring

Environmental monitoring provides feedback about the actual environmental impacts of a project

Helps judge the success of mitigation measures in protecting the environment

Ensure compliance with environmental standards

Facilitate any needed project design or operational changes

Benefits FlawsProvides systematic methods of impact

assessmentTime-consuming

Estimates the cost/benefit trade-off of alternative actions

Costly

Facilitates the public participation Little public participation in actual implementation

Provides an effective mechanism for • coordination• environmental integration• negotiations• feed back

Unavailability for reliable data (mostly in developing countries)

Top-level decision making Too focused on scientific analysis (sometimes)

Triggers an institutional building Poor presentation of EIA report (bulky volumes, scientific explanation, difficult to understand)

Achieve a balance between the impact of developmental and environmental concern

Compliance monitoring after EIA is seldom carried out

Case StudyCase Study

Beijing Environmental Improvement Beijing Environmental Improvement Project, People’s Republic of ChinaProject, People’s Republic of China

http://www.adb.org/Documents/PCRs/PRC/pcr-prc-25371.pdfhttp://www.adb.org/Documents/PCRs/PRC/pcr-prc-25371.pdf

Beijing Environmental Improvement Beijing Environmental Improvement ProjectProject

Sub-projects EIA Classification

1. District heating system B

2. Natural gas distribution system B

3. Pollution abatement at drinking water reservoirs B

4. Relocation and renovation of chemical plant A

5. Treatment and disposal of hazardous waste A

6. Institutional Strengthening

Beijing Environmental Protection Bureau

Beijing Research Institute of Environmental Protection

Beijing Environmental Monitoring Center

Beijing Technical Training Center for Environmental Protection

C

Summary Initial Environmental Examinations Summary Initial Environmental Examinations (SIEE)(SIEE)

Project description:Project description:1.1. Supply co-generated steam and hot water from Huaneng Supply co-generated steam and hot water from Huaneng

Power Station in a closed loop system to 21 factoriesPower Station in a closed loop system to 21 factories

2.2. Install a natural gas distribution Install a natural gas distribution system pipeline to distribute system pipeline to distribute 0.7 billion cubic meters of 0.7 billion cubic meters of natural gas/yearnatural gas/year

SIEESIEE

Anticipated impacts during Anticipated impacts during construction:construction:Effects associated with laying pipesEffects associated with laying pipes

– Soil excavationSoil excavation

– Interfere with pedestrian and road traffic Interfere with pedestrian and road traffic and potential injury hazardand potential injury hazard

– Increased noise and dustIncreased noise and dust

Displace houses, people, treesDisplace houses, people, trees– 365 families (1,456 people) for the district 365 families (1,456 people) for the district

heating systemheating system

– 120 families (480 people) for the natural 120 families (480 people) for the natural gas pipelinegas pipeline

SIEESIEE

Anticipated impacts after construction:Anticipated impacts after construction:Material failure leading to accidental releaseMaterial failure leading to accidental release

– Steam pipelines- loss of powerSteam pipelines- loss of power

– Natural gas pipelines- fire, explosionNatural gas pipelines- fire, explosion

Mitigation Measures:Mitigation Measures:Impacts during construction are negative but reversible or can be minimizedImpacts during construction are negative but reversible or can be minimized

– Construction during daylight hours in residential neighborhoods when Construction during daylight hours in residential neighborhoods when noise is less bothersomenoise is less bothersome

– Construction in commercial areas at night when less likely to impact Construction in commercial areas at night when less likely to impact businessesbusinesses

SIEESIEE

Monitoring programMonitoring programOrganize an environmental management and protection section to oversea Organize an environmental management and protection section to oversea project and coordinate with appropriate agenciesproject and coordinate with appropriate agencies

Annual report to ADB of project’s compliance with environmental standardsAnnual report to ADB of project’s compliance with environmental standards

Monitor natural gas equipment with a continuous hydrocarbon analyzer, Monitor natural gas equipment with a continuous hydrocarbon analyzer, inflammable gas analyzer, and noise meterinflammable gas analyzer, and noise meter

Pipe integrity to be tested continuously using impressed electric currentsPipe integrity to be tested continuously using impressed electric currents

Automatic control values, pressure release valves, rupture valves, Automatic control values, pressure release valves, rupture valves, firefighting equipment and other safety devices checked periodicallyfirefighting equipment and other safety devices checked periodically

SIEESIEE

Mitigation Measures:Mitigation Measures:Budget for re-locating families into improved housing that Budget for re-locating families into improved housing that includes amenities such as potable water supply, sewage includes amenities such as potable water supply, sewage collection, drainage, hot water, gas, and electricitycollection, drainage, hot water, gas, and electricity

– Include expenses for re-trainingInclude expenses for re-training

– Employment near their new residencesEmployment near their new residences

Small trees can be re-planted and pipeline will be sited to Small trees can be re-planted and pipeline will be sited to avoid larger mature trees when possibleavoid larger mature trees when possible

Fence off construction sitesFence off construction sites

SIEESIEEEconomic BenefitsEconomic Benefits

JobsJobs– Heating project will employ 1,400 persons permanentlyHeating project will employ 1,400 persons permanently– Natural gas project will employ 1,500 persons permanentlyNatural gas project will employ 1,500 persons permanently– Temporary employment during construction phaseTemporary employment during construction phase

FuelFuel– Cost savings resulting from the substitution of coal for natural gasCost savings resulting from the substitution of coal for natural gas

Environmental benefits after constructionEnvironmental benefits after construction

Heat and steam could reduce coal use by 1.16 million metric tons Heat and steam could reduce coal use by 1.16 million metric tons which is equivalent to the removal of which is equivalent to the removal of – 19,900 metric tons of sulfur dioxides19,900 metric tons of sulfur dioxides– 10,000 metric tons of total suspended materials10,000 metric tons of total suspended materials– 336,900 metric tons of ash and slag336,900 metric tons of ash and slag

Financial ReturnFinancial ReturnOriginal financial internal rate of return (FIRR)Original financial internal rate of return (FIRR)– Steam heating project was 7.3% (reality 5.9%)Steam heating project was 7.3% (reality 5.9%)

– Natural gas network was 10.0% (reality 11.1%)Natural gas network was 10.0% (reality 11.1%)

http://www.adb.org/Documents/PCRs/PRC/pcr-prc-25371.pdf

Other Benefits … lower air pollutionOther Benefits … lower air pollution

PHOTOS: Bob Zerbonia

Other Benefits … less acid rainOther Benefits … less acid rain

Other Benefits … children’s healthOther Benefits … children’s health

Lewis et al. MJA 1998; 169: 459-463

Other Benefits … reduced arsenicOther Benefits … reduced arsenic

Liu et al. EHP(2002) Vol. 110

Word of caution … EIAs cannotWord of caution … EIAs cannot

Decide which alternative to choseDecide which alternative to chose

Prevent environmental impacts from happeningPrevent environmental impacts from happening

Guarantee decisions you like Guarantee decisions you like

Prohibit any actionsProhibit any actions

Cumulative effects of multiple projects and over Cumulative effects of multiple projects and over timetime

Global Environmental Impacts

What makes it global?Local Commons

• Urbanization• Water supply and sanitation• Human health• …

Regional Commons• Airsheds• Watersheds• Land and forests• Industrialization• Transportation corridors• Agriculture and other land

uses• …

Global Commons• Oceans• Atmospheres• Minerals and materials• Climate• Globalization of trade and commerce• Global social and political institutions• Epidemics• …

Altering the structure of an Altering the structure of an ecosystem (habitats or ecosystem (habitats or species) can influence the species) can influence the services provided by a services provided by a particular ecosystemparticular ecosystem

Alter Structure, Alter Structure, Alter Function Alter Function

FisheriesFisheries

AgricultureAgriculture

Nitrogen & Phosphorous cycleNitrogen & Phosphorous cycle

Disruption of the phosphorous cycle in

Mississippi due to fertilizer run-off

SOURCE: USGS

Loss of wetlands and Loss of wetlands and restructuring wetlands in restructuring wetlands in

Louisiana removes natural Louisiana removes natural nutrient filtrationnutrient filtration

Gulf of Mexico "Dead Zone“Gulf of Mexico "Dead Zone“Hypoxic Zone – depleted oxygenHypoxic Zone – depleted oxygen

Northern Gulf of Mexico/Mississippi Delta showing deoxygenated (hypoxic) coastal water (light blue). This is due to excessive nitrogen being washed into the sea.

Source: Jacques Descloitres, MODIS Land Rapid Response Team, NASA/GSFC, Jan 2003

What is causing ecosystem change?

Direct Driver- influences ecosystem processes– Habitat change

– Over-exploitation

– Invasive alien species

– Pollution

– Climate change

Indirect Driver-collectively these drivers influence the level of production & consumption of ecosystem services

– Population changes

– Economic activities

– Socio-political/Governmental factors

– Cultural factors

– Technological changesTechnological changes

Impact From Human ActivityImpact From Human Activity

The ecosystems most The ecosystems most altered by human activityaltered by human activity– MarineMarine– FreshwaterFreshwater– Temperate broadleaf forestsTemperate broadleaf forests– Temperate grasslandsTemperate grasslands– Mediterranean forestsMediterranean forests– Tropical dry forestsTropical dry forests

The majority of the The majority of the ecosystem conversion was to ecosystem conversion was to cultivated systemscultivated systems

The 2001 OECD Environmental OutlookThe forces driving environmental change and State of the Environment

http://www.oecd.org/dataoecd/33/38/1863523.pdf

Investing in Ecosystems for Pro-Poor Development

Case Analysis Prepared by:

Simon Zbinden and David R. LeeMay 3, 2003

Conference on

Reconciling Rural Poverty Reduction and Resource Conservation

Linkages Between Sustainable Development, Linkages Between Sustainable Development, Environment and PovertyEnvironment and Poverty

SUSTAINABLE DEVELOPMENT

POVERTY DEVELOPMENT

ResourceDepletion andDegradation

ResourceResourceDepletion andDepletion andDegradationDegradation

ENVIRONMENT PROBLEMSPOLLUTION, LAND DEGRADATION,

CLIMATE CHANGE

ViciousCircle I

ViciousCircle II

Pollution ofpoverty

Pollution ofaffluence

Poverty Alleviation

* Meeting basic needs (health/education/shelter)* Productive employment* Control over common property resources* Population control

Integration of Environment into Development

* SEA & EIA of development projects* Technology for development* Rural-urban migration* Renewable energy issues* Regional and international cooperation

Source: Jalal, 1993Source: Jalal, 1993

A Vicious Circle?

POVERTY ENVIRONMENTALDEGRADATION

Brundtland Report 1990 - poverty as a major cause and effect of global environmental problems

Responding to environmental threats

Demand for environmental quality ...– … is a luxury - the poor are too busy thinking about basic

survival to concern themselves with environmental issues

Ability to respond to such demands ...– … is dependent on aggregate wealth - economic prosperity

and technological sophistication allow nations to react to environmental challenges

Ergo ...– Environmentalism is the exclusive concern of the rich, in

the advanced industrial nations

Are these concerns exclusively found in rich

nations?

Understanding responses

Out of concern for nature– … as a source of cultural, spiritual, social and

economic value ...

To mitigate anthropogenic influences on the natural environment– … pollution, resource depletion, extinction of

species ...

To reduce the impacts of environmental changes on human society– … health impacts, livelihoods, needs, well-

being

Forestry

Ecological Function of Forests– regulate the water cycle– stabilize soils– moderate climate by fixing carbon– provide habitat for flora and fauna– offer cultural, spiritual, and recreational

opportunities– provide food, medicines, and wood

Amazon Basin

Photo: World Resources Institute

Change in World Forest Cover, 1990-2005

Continent Forest Cover   Annual Change

  1990 2000 2005  1990-2000

2000-2005

1990-2005

  Million Hectares   Million Hectares

Africa 699 656 635   -4.4 -4 -4.3

Asia 574 567 572   -0.8 1 -0.2

Europe 989 998 1,001   0.9 0.7 0.8

North & Central America 711 708 706   -0.3 -0.3 -0.3

Oceania 213 208 206   -0.4 -0.4 -0.4

South America 891 853 832   -3.8 -4.3 -4

TOTAL WORLD 4,077 3,989 3,952   -8.9 -7.3 -8.4

Source: Compiled by Earth Policy Institute from U.N. Food and Agriculture Organization, Global Forest Resources Assessment 2005 (Rome: 2006), www.fao.org/forestry/site/32038/en.

Overall, trend is decreasing forest cover with a steady increase in production for both fuel wood and industry.

The Costa Rican System of Payments for Forest Environmental Services

The forestry law specifies the following:

Cash compensation paid to landowners and forest owners for environmental services.

Explicitly recognized environmental services include– carbon storage and

sequestration– watershed protection – biodiversity conservation – provision of scenic beauty

Pagos Por Servicios Ambientales (PSA) program rules

PSA contacts create a legal easement that remains with the property if it is sold – Individuals were restricted to registering 2-300 hectares of land per

year– Indigenous groups could register up to 600 ha/year– Coalitions acting through local nongovernmental organizations had

no limits

Landowners transfer carbon offset rights to the national government which then sells these offsets on the international market

G. Arturo Sanchez-Azofeifa et al (2007). Costa Rica’s Payment for Environmental Services Program: Intention, Implementation, and Impact. Conservation Biology.

Costa Rica’s PSA Program

Selected Details of Program Options

Program Option

Total Payment$ / ha1

Contract PeriodYears

Contract Area

Disbursement

Min. ha

Max. ha

% of payment per year

Reforestation 623 15 1 - 50%, 20%, 15%, 10%, 5%

Forest Conservation

384 10 2 300 20%, 20%, 20%, 20%, 20%,

Sustainable Management

241 5 2 300 50%, 20%, 10%, 10%, 10%

1) Total payment per hectare in nominal US Dollars between 1997 and 2001

Source: Adapted from Chomitz, Brenes and Constantino, 1998.

ReforestationReforestation

Forest Conservation

Forest Conservation Forest

Conservation

SustainableManagement

SustainableManagement

SustainableManagement

National Forestry Financing Fund

$ $ $

Costa Rican Citizens

CarbonBuyers

Global Community

Local Hydro-Power Plants

3.5% Tax on Fossil Fuel

OCIC Joint Implementation

Global Environ.Facility GEF

water services, biodiversity,

scenic beauty

carbon sequestration

Biodiversity, carbon sequestration

water services

$ $ $ $

$ $ $

Source: Adapted from Pagiola, 2002.

Reforestation

Forest Environmental Services

Costa Rica’s PSA Program Financing Payments for Environmental Services

0

500

1000

1500

2000

2500

3000

3500

4000

1950 1960 1970 1980 1990 2000

Forest Cover (hectares)

Protected Areas (hectares)

Population (No. habit.)

Source: Gamez, 2001

Quantitative Impact of the ProgramH

ecta

res

(1,0

00);

# in

habi

tant

es (

1,00

0)

PSA program funding: – Original PSA program was a 15% consumer tax on fossil fuels– In 2001 a new law was passed, assigning 3.5% of tax revenue directly to

the PSA program– Voluntary contracts with private hydroelectric producers who pay for

watershed services– World Bank loan and a Global Environmental Facility (GEF) grant

Financial returns from the program: – Average returns from PSA ranged from US$22 to US$42/ha/year before

fencing, tree planting, and certification costs– The main competing land use -- cattle ranching -- shows returns from

US$8 to US$125, "depending on location, land type, and ranching practices"

Take Home Messages

History illustrates the environmental impacts associated with unregulated infrastructure growth

Infrastructure growth is necessary for economic growth

Environmental impact assessments are a formal process for evaluating and mitigating negative environmental impacts before a project is built

Global environmental resources are in steady decline

Current debate whether investing in environmental services can reduce poverty

Key Concepts

Environmental transition/Kuznet’s curve

Environmental Impact Assessment

Project Cycle

Policies to break ‘vicious cycles’ of affluence and poverty to promote environmental quality

Recommended text books

Wood, C. (2002). Environmental Impact Assessment: a Comparative Review (2nd Edition). Harlow: Prentice HallTherivel, R. and Partidário, M.R. (1996). The Practice of Strategic Environmental Assessment. London: Earthscan Glasson, J. Therivel, R. and Chadwick, A. (1999). Introduction to Environmental Impact Assessment (2nd Edition). London: Spon Press