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Cost of Environmental Degradation
Ministry of Environment
Service of Environmental Guidance
Viviane Sassine
Environmental Specialist
SMAP III Regional Meeting, Villa Valmer, Marseilles, France
29 June 2009
Outline
 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 nonenvironmentalis
t language
Community
Decision
makers
Next
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
Objectives

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?
Water Quality
Solid waste
Air Quality
Total Cost
Coastal Zones
& Cultural
heritage
Land & Wild life
Next
Republic of Lebanon
Economic Assessment of Environmental
Degradation due to July 2006 hostilities
Funded & implemented:
World Bank
Aim and Objectives
 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
degradation
2.Identify the natural resources mostly affected by
the Israeli war on Lebanon
Total Cost
729 million USD
3.6% GDP
Overall cost of environmental degradation
Impacts
US$ million
min
US$ million
max
US$ million
average
% 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
526.9
931.1
729.0
3.6%
Total environmental
cost caused by
hostilities
[1]
Based on an estimated GDP for 2006 of US$20.5 billion (Economic Intelligence Unit, 2006)
Environmental damages by categories
300
US$ million
250
200
150
100
50
0
Waste
Oil Spill
Water Quarries Forests
Next
Waste
Total estimated costs
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
Back
Oil Spill
Estimated costs of damage and clean-up due to the oil spill (million US$)
Mean estimate
Damage Costs: Hotels, Beach resorts,
139.6
Marinas, Palm Islands Nature Reserve,
Byblos, Restaurants, Commercial fishing,
Sea-shore fishing, Cost of oil fuel burnt, …
Oil Spill Clean Up: Expenses already made,
63.5
Oiled waste, Monitoring expenses
Total
203.1
Back
Water
 The
additional costs of getting water and
the cost of reservoir rehabilitation are
valued at US$131.4 million.
 This figure underestimates the real value
of the damage cost linked to water
resources, as it does not include the
impact of water degradation on health.
Back
Quarries
Overall damage caused by the added
pressure on quarries to supply needed
aggregate and sand for the reconstruction
is estimated to range between US$ 15 and
175 million (or an average of US$95.5
million).
Back
Forest
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.
Back
Water Quality
175 Million USD/ 1.0-1.2 percent of GDP
Health Impacts
79 – 105 M USD
Morbidity
Reduced Quality
of potable water
82- 89 M USD
Mortality
Medical Care
Purchase
of Bottled
Water
Air Quality
170 Million USD/ 0.7-1.3 % of GDP
Health impacts
from Lead
28-40 M USD
Health Impacts
from PM10
61-124 M USD
Health Impacts of
Indoor air pollution
10-46 M USD
Quality of Life
12- 16 M USD
Land & Wild Life
100 Million USD/ 0.5-0.7 % of GDP
Deterioration of
estate prices
around 3 quarries
14 – 16 M USD
Degraded Terraced
Land
60 – 90 M USD
Deterioration of Tourism
opportunities
4-14 M USD
Coastal Zones &
Cultural Heritage
110 Million USD/ 0.6-0.75 % of GDP
International tourism
losses
63-74 M USD
Domestic
recreational losses
9 – 12 M USD
Ecological losses &
Non-use value
27-40 M USD
Solid Waste
8 Million USD/ 0.05% of GDP
Mismanagement of
Municipal Solid waste
8 M USD
Comparison 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 Environment
Ministry of Environment
Lazarieh Center, Downtown Beirut
P.O. Box 11-2727 Lebanon
Tel: 00 961 (0) 1 976 555
Fax: 00 961 (0) 1 976 530
E-mail: [email protected]
[email protected]
Visit: www.moe.gov.lb