1. 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

2. 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

3. Why do we Need to Know the Cost of Neglecting the Environment?
To speak a non-environmentalist language
Community
Decision makers
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4. 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

5. 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.

6. Total Cost
565 million USD
% GDP

7. Coastal Zones & Cultural heritage
What?
Water Quality
Solid waste
Air Quality
Total Cost
Coastal Zones & Cultural heritage
Land & Wild life
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8. Republic of Lebanon
Economic Assessment of Environmental Degradation due to July 2006 hostilities
Funded & implemented:
World Bank

9. 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:
Present the overall picture of environmental degradation
Identify the natural resources mostly affected by the Israeli war on Lebanon

10. Total Cost
729 million USD
3.6% GDP

11. Overall cost of environmental degradation
Impacts
US$ million
min
max
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
0.6
Quarries
15.4
175.5
95.5
0.5
Forests
7.0
10.8
8.9
0.0
Total environmental cost caused by hostilities
526.9
931.1
729.0
3.6%
[1] Based on an estimated GDP for 2006 of US$20.5 billion (Economic Intelligence Unit, 2006)

12. Environmental damages by categories
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13. Damage cost (US$ million)
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
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14. Oil Spill
Estimated costs of damage and clean-up due to the oil spill (million US$)
Mean estimate
Damage Costs: Hotels, Beach resorts, Marinas, Palm Islands Nature Reserve, Byblos, Restaurants, Commercial fishing, Sea-shore fishing, Cost of oil fuel burnt, …
139.6
Oil Spill Clean Up: Expenses already made, Oiled waste, Monitoring expenses
63.5
Total
203.1
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15. Water
The additional costs of getting water and the cost of reservoir rehabilitation are valued at US$131.4 million.
This figure underestimates the real value of the damage cost linked to water resources, as it does not include the impact of water degradation on health.
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16. Quarries
Overall damage caused by the added pressure on quarries to supply needed aggregate and sand for the reconstruction is estimated to range between US$ 15 and 175 million (or an average of US$95.5 million).
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17. 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.
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18. Water Quality 175 Million USD/ 1.0-1.2 percent of GDP
Health Impacts
79 – 105 M USD
Reduced Quality of potable water
M USD
Morbidity
Mortality
Purchase of Bottled Water
Medical Care

19. Air Quality 170 Million USD/ 0.7-1.3 % of GDP Health impacts from Lead
28-40 M USD
Health Impacts from PM10
M USD
Health Impacts of Indoor air pollution
10-46 M USD
Quality of Life
M USD

20. 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
كلفة تدهور الأراضي المجللة – الكلفة الإنتاجية
الخائر السياحية:مراقبة الطيور، wtp فرص ترفيه معتمدة على الطبيعة
Deterioration of Tourism opportunities
4-14 M USD

21. 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
كلفة الخسائر
على صعيد الترفيه الداخلي: كلفة السفر الى شواطئ طرابلس، جونيه، بيروت
كلفة الخسائر الإيكولوجية: عدم الاستعمال (السلاحف)
Ecological losses & Non-use value
27-40 M USD

22. Mismanagement of Municipal Solid waste
8 Million USD/ 0.05% of GDP
Mismanagement of Municipal Solid waste
8 M USD

23. 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.

24. Service of Environmental Guidance Directorate General of Environment
Ministry of Environment
Lazarieh Center, Downtown Beirut
P.O. Box Lebanon
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