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Sunday, October 05, 2008

 

Economic cost of pollution 
is P1.5 billion, 2 percent of GDP

by Frank Lloyd Tiongson, Reporter

Not investing in pollution mitigation is actually costlier than investing, various studies point out.

Aside from its serious threats to health, pollution also means billions of pesos wasted in lost productivity, hospitalization and medication, as well as loss of possible revenues from tourism.

Government should therefore think twice before deciding not to invest in long term infrastructure projects no matter how expensive these may seem.

 Air pollution in Metro Manila, for instance, is responsible for 12 percent of all deaths in the region, according to a joint World Bank and Department of Environment and Natural Resources study. Due to poor air quality alone, respiratory and cardiovascular diseases are reported kill almost 5,000 people in Metro Manila every year.

Last year, Rahul Raturi, Rural Development, Natural Resources and Environmental Sector Manager of the WB, said the cost of treatment and lost income from the environmental diseases are estimated to be P14 billion annually.

Environmental concerns journalist Henrylito Tacio had higher estimates of the cost of air pollution— $1.5 billion per year or about two percent of the gross domestic product. He figured the cost in terms of lost wages, medical treatment expenses, and premature loss of life due to air pollution.

Among the prevalent diseases associated with air pollution are tuberculosis, asthma and pneumonia, which are also compounded with overcrowding in most areas of the NCR.

“This means that each person each year spends around P2,000 for treatment and medication for health-related illnesses brought about by air pollution,” Tacio added.

Water-borne diseases brought about by water pollution, meanwhile, have been responsible for around 31 percent of illness monitored for a five-year period according to the 2003 Philippine Environment Monitor of the World Bank.

The study noted that the “adverse impact of water pollution costs the economy an estimated P67 billion annually . . . these include P3 billion for health, P17 billion for fisheries production, and P47 billion for tourism.”

It also cited that there is an “under-investment” by the government in sanitation and sewerage even though the said projects have been ranked as high priority as early as 1996 in the Philippines Agenda 21. For one, a measly seven percent of the total Philippine population is connected to sewer systems. As such, the study estimated that over a 10-year period, the country will need to invest P250 billion in physical infrastructure.

Local governments must also think twice about retaining outmoded solid waste management methods, such as landfilling and dumpsite contracting, since alternative and more environmentally-sound measures will actually save the government millions.

In 2004, the National Solid Waste Management Commission estimated that the country generates about 7.2 million tons of garbage every year. The commission reported that the volume is bound to increase to more than 10 million tons per year by 2010.

Citing a 2003 Asian Development Bank study, the Board of Investment of the Department of Trade and Industry (DTI) wrote early this year that “the total cost of solid waste management in Metro Manila in 2001, from collection to final disposal, is estimated to have reached P3.5 billion or P1,700 per ton of waste. Considering the required improvement of final disposal to sanitary landfill and reduction of waste by intermediate treatment, the cost of solid waste is expected to further increase and bear heavily upon the local budget.”

The ADB study, moreover, indicates that reduction of solid waste generation by 10 percent can save about P340 million in terms of solid waste management cost. The DTI paper noted, “this clearly demonstrates the positive impacts of promoting recycling upon national as well as local budget.”

The government, however, must be wary when it does invest in technologies aimed to curb pollution.

Environmental advocacy groups such as the EcoWaste Coalition, for instance, have lambasted a planned $2.2-million loan in the 2009 budget to purchase a reportedly outmoded hospital-waste incinerator from Austria which has been banned in most European countries.

There is no easy, quick fix solution to a long-standing and systematic malady such as pollution. It requires large and stringently-monitored investments that are both sustainable and environmentally sound.

There must be no hesitation from both government and its citizens to invest in projects aimed at curbing pollution. While the costs are great, the payback, in terms of improved and safe living conditions, will be priceless.

   
 

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Ping Oco, Franklin Bartolay
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