环评研讨会会议资料：《Environmental economics in action》

Environmental economics in action Guidelines for elas Renmin University 21 October 2004 Haakon∨ enema haakon. vennemo@econ. no ecn analysiswww.econ.no

Environmental economics in action: Guidelines for EIAs Renmin University 21 October 2004 Haakon Vennemo haakon.vennemo@econ.no

What is econ and who am i? g a think-tank in Scandinavia with 100 employees g Owned and run by employees e Economics and other social science on problems of current interest e Particularly strong in environment&energy g 1/3 of activity outside Europe o i have been in China since 1995 o Environmental cost model for china o Climate and local pollution o Air quality master plan guangzhou City, Shanxi Province o Environment&Development Economics 2001, Energy Policy 2004, Journal of Cleaner Production 2004 ecn analysiswww.econ.no

2 What is ECON and who am I? A think-tank in Scandinavia with 100 employees Owned and run by employees Economics and other social science on problems of current interest Particularly strong in environment&energy 1/3 of activity outside Europe I have been in China since 1995  Environmental cost model for China  Climate and local pollution  Air quality master plan Guangzhou City, Shanxi Province  Environment&Development Economics 2001, Energy Policy 2004, Journal of Cleaner Production 2004…

The project background g Background I: Environmental impacts sometimes ignored in economic development g Background II: Cost-benefit evaluation of o Whole project o Mitigation options/modifications o Other changes in project design (location technology) o Benefits of environmental impacts Awareness tool o Reveal imperfections in EIA reports e Background II: Current EIA-law emphasises cost benefit calculation as part of EIA-report e But how? econ analysis www

3 The project background Background I: Environmental impacts sometimes ignored in economic development Background II: Cost-benefit evaluation of  Whole project  Mitigation options/modifications  Other changes in project design (location, technology)  Benefits of environmental impacts: Awareness tool  Reveal imperfections in EIA reports Background II: Current EIA-law emphasises cost￾benefit calculation as part of EIA-report But how?

The project e Project to demonstrate how environmental economic tools can be integrated in EIA guidelines and practice g Obstacles and good practice g Advice/ guidelines for future EIAs e Four case-studies o Air- power plant datong, Shanxi Province o Water-wastewater treatment plant o Soil waste irrigation Shijiazhuang, Hebei Province o Land use -highway construction Chongqing ecn analysis www

4 The project Project to demonstrate how environmental economic tools can be integrated in EIA￾guidelines and practice Obstacles and good practice Advice/guidelines for future EIAs Four case-studies:  Air – power plant Datong, Shanxi Province  Water – wastewater treatment plant  Soil – waste irrigation Shijiazhuang, Hebei Province  Land use – highway construction Chongqing

Integration from an abstract point of view Activities /sources I Stressors Environmental media Receptors Environmental cost Unit valuation Impacts ecn analysis www

5 Integration from an abstract point of view Activities/sources Stressors Environmental media Receptors Environmental cost Unit valuation Impacts

Valuation linked to description of impacts g Impacts on production activities o Industry(water o Fishery(water) o Agriculture(water, air, soil land use) o Forestry(air, soil, land use) g Impacts on materials (air g Impacts on human health o Respiratory symptoms(air) o Cancer(water, air) o Hepatitis(water)etc ecn analysiswww.econ.no

6 Valuation linked to description of impacts Impacts on production activities  Industry (water)  Fishery (water)  Agriculture (water, air, soil, land use)  Forestry (air, soil, land use) Impacts on materials (air) Impacts on human health  Respiratory symptoms (air)  Cancer (water, air)  Hepatitis (water) etc

What are the impacts? c Impacts on biological diversity(air, soil, land use g Impacts on ecological services(soil land use) g Impacts on human welfare(air, water, land use) o Water for fishing, swimming, recreation o Visibility of air o Changes in landscape e Political valuation o distance to target o cost of abatement in other sectors e Different valuation tailored to different impacts ecn analysiswww.econ.no

7 What are the impacts? Impacts on biological diversity (air, soil, land use) Impacts on ecological services (soil, land use) Impacts on human welfare (air, water, land use)  Water for fishing, swimming, recreation  Visibility of air  Changes in landscape Political valuation  distance to target  cost of abatement in other sectors Different valuation tailored to different impacts

Valuation of market impacts and health g Impacts on production activities: Market price g Material damage: Repair and replacement o Theoretical economic concept is cost of increased capital depreciation o Health: Several options o Theoretical concept is resource cost Welfare cost o Resource cost Cost of having person at hospital medicines work day loss etc o Welfare cost willingness to pay to reduce health risk (in statistical ex ante sense) o For morbidity we recommend only resource cost(for precautionary reasons econ analysis www

8 Valuation of market impacts and health Impacts on production activities: Market price Material damage: Repair and replacement  Theoretical economic concept is cost of increased capital depreciation Health: Several options  Theoretical concept is Resource cost + Welfare cost  Resource cost = Cost of having person at hospital + medicines + work day loss etc  Welfare cost = willingness to pay to reduce health risk (in statistical ex ante sense).  For morbidity we recommend only Resource cost (for precautionary reasons)

Valuation of morta lity risk e Mortality risk: Several options o Market price of risk: Wage differential O Contingent valuation(ask people) Several surveys in China recently (Adjusted) human capital approach not recommended in Western countries Neither welfare cost nor resource cost ecn analysiswww.econ.no

9 Valuation of mortality risk Mortality risk: Several options  Market price of risk: Wage differential  Contingent valuation (ask people) – Several surveys in China recently  (Adjusted) human capital approach not recommended in Western countries – Neither welfare cost nor resource cost

Other stuff g Biological diversity: Contingent valuation, expert panel valuation, political valuation g Ecological services: Same user value of services g Impacts on human welfare: Contingent valuation, political valuation ecn analysiswww.econ.no

10 Other stuff Biological diversity: Contingent valuation, expert panel valuation, political valuation Ecological services: Same + user value of services Impacts on human welfare: Contingent valuation, political valuation