Analysis for ENPI countries of Social and Economic Benefits of Enhanced Environmental Protection...

Analysis for ENPI countries of Social and Economic Benefits

of Enhanced Environmental Protection

EuropeAid DCI-ENV/2009/225-962

WATERBjorn Larsen

Environmental EconomistFreelance ConsultantNorway and Lao PDR

e-mail: [email protected]

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

• Some questions

02-03-2011 EuropeAid - ENPI-East projects meeting, Brussels 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 scarcity02-03-2011 EuropeAid - ENPI-East projects meeting, Brussels 3

Parameter linkages

02-03-2011 EuropeAid - ENPI-East projects meeting, Brussels

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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 description of benefits*

Quantitative and monetary assessment of benefits

Drinking water, sewage, and hygiene

Yes Health

Wastewater treatment Yes Indirectly (through surface water quality)

Surface water quality Yes Welfare*

Water scarcity Yes None


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* Health, environmental, economic, and social benefits

Methodological steps


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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 (qualitative and quantitative)

Household drinking water, sewage and hygiene


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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)


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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)


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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


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

connection to a sewage network are seen in most countries as 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


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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 much smaller percentage of households – ranging from 50-90% - have piped water supply on premises (WHO/UNICEF, 2010).

• Likewise, 80-95% of households have what is classified as improved sanitation facilities (WHO/UNICEF, 2010), while 30-70% of households are connected to a sewage network.


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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).


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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.

Sewage 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.


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Piped water supply and

sewage connection

Piped water supply but not sewage connection

Not piped water supply

but has sewage

connection

Not piped water supply

and not sewage

connection

Armenia 64% 23% 1% 12%Azerbaijan 30% 20% 3% 47%Belarus 67% 22% 1% 10%Georgia 42% 31% 1% 26%Moldova 25% 15% 3% 57%Russia 63% 15% 2% 20%Ukraine 47% 20% 1% 32%

Population coverage of piped water supply and sewage connection, 2008

Diarrheal disease and mortality reductions from reaching the targets


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Current water supply and sanitation

coverage Water and sanitation improvement

Reduction in diarrheal disease

and mortality Has piped water supply and sewage connection

Improvement in reliability and quality of piped water (so as to ensure plentiful and safe water supply) for those of this population currently having water reliability and quality problems 15%

Has piped water supply but no sewage connection

a) Improvement in reliability and quality of piped water (so as to ensure plentiful and safe water supply) for those of this population currently having water reliability and quality problems. b) Sewage connection (and flush toilet for those with dry toilet or no toilet) for all of this population. 35%

Not piped water supply but has sewage connection

Reliable and safe piped water supply to premises for all of this population 25%

Not piped water supply and no sewage connection

Reliable and safe piped water supply and sewage connection (and flush toilet for those with dry toilet or no toilet) for all of this population 45%

Nationwide diarrheal disease and mortality reductions


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Nationwide diarrheal disease and mortality reduction

Already good hygieneSubstantial scope for hygiene improvement

Armenia 25% 57%Azerbaijan 36% 67%Belarus 24% 56%Georgia 31% 63%Moldova 38% 69%Russia 27% 59%Ukraine 31% 63%

Main results

Magnitude of health benefits depends on:

• Current water, sanitation and hygiene situation

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


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Annual benefits, 2020


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Annual cases avoided Annual benefits (Million Euros, PPP)

Diarrhoea (million) Deaths Total Total (% GDP)

High Low High Low High Low High Low

Armenia 1.2 0.5 34 15 84 37 0.43% 0.19%

Azerbaijan 4.6 2.5 829 439 939 498 1.08% 0.57%

Belarus 2.7 1.2 14 6 313 136 0.27% 0.12%

Georgia 1.6 0.8 77 38 101 50 0.51% 0.25%

Moldova 1.2 0.6 31 17 40 22 0.39% 0.21%

Russia 40.9 18.5 577 262 9,639 4,370 0.32% 0.14%

Ukraine 14.0 6.9 112 55 999 494 0.31% 0.16%

TOTAL 66.1 31.0 1,647 832 12,115 5,607 - -

Wastewater treatment


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Definition of terms

Wastewater treatment• Any process that reduces the amount of suspended

solids, and dissolved compounds and micro-organisms harmful to the environment and/or the human health in wastewater. Only treatment in facilities operating with the approval of environmental and/or health authorities should be considered. (WHO 2002)

• Primary, secondary and tertiary wastewater treatments are methods that progressively reduce pollution before wastewater enters the environment


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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.


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Surface water quality


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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.


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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.


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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).


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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


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Annual benefits, 2020


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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

Armenia 45.9 180.4 38 150 0,20% 0,79%Azerbaijan 30.7 143.3 92 430 0.11% 0.49%Belarus 58.8 207.1 204 718 0.18% 0.62%Georgia 44.5 174.6 49 190 0.25% 0.97%Moldova 37,8 147,1 45 177 0,44% 1,73%Russia 67.1 229.8 3,510 12,100 0.11% 0.38%Ukraine 50.5 184.6 870 3,180 0.27% 1.00%

TOTAL 4,808 16,945

Water scarcity


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Definition of termsWater scarcity• The parameter measures the total freshwater abstracted (withdrawal)

and compares this to the total actual renewable water resource.

• According to the European Environment Agency (2009), one relatively straightforward indicator of the pressure or stress on freshwater resources is the Water Exploitation Index (WEI) (also known as the Water Stress Index and Relative Water Stress Index). This is calculated annually as the ratio of total freshwater abstracted (withdrawal) to the Total Actual Renewable Water Resource (TARWR).

• A WEI above 20 per cent implies that a water resource is under stress and values above 40 per cent indicate severe water stress (Raskin et al., 1997).

• Water Exploitation Index = Total withdrawal per year / TARWR


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Analysis for ENPI countries of Social and Economic Benefits of Enhanced Environmental Protection...

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