Cost Benefit Analysis of coastal risk management measures against oil spill hazards

Transcription

1 Cost Benefit Analysis of coastal risk management measures against oil spill hazards

2 Outline 1. CBA for oil spills 2. Computing annual average damages 3. Data 4. Assessing the costs 5. Assessing the benefits 6. CASE STUDY

3 1. CBA for oil spills The CBA applied to oil spills prevention measures means to compare the costs that the establishment of a management plan with the benefits that these measures will provide in avoiding an oil spill.

4 2. Computing annual average damages Assessing the likelihood that an oil spill occurs Assessing the damage that would be caused by an oil spill Avoided losses

5 3. Data Define the affected area: benefit area Collection of characteristics of this area: analyze the vulnerability +potential damages Assessing the benefits of protecting properties+resources Geographical Information System (GIS)+Mapping+Likelihood data

6 4. Assessing the costs Spanish plan: Plan Ribera (2014) Spanish coast sensitivity Vulnerability and risk analysis Logistic questions Available equipment from the Ministry since 2011 as a consequence of this Plan: 3 bases along the Spanish coast Response equipments Specialized personnel SASEMAR: 11 helicopters 5 planes 21 coordination centers 1 surveillance plane 74 ships 6 logistic bases Among others

7 5. Assessing the benefits Damage to fisheries and shellfisheries Damage to mussel farming Damage to canning and fishing processing sector Damage to tourism sector Other damages Environmental damage Image Losses Market prices Contingent Valuation Hedonic prices

8 Comparing: Benefits (avoided costs) vs. Costs

9 Scenario description CASE STUDY CAMGAL Plan (Galicia)

10 Map 1: Location of the accident: Galicia Ons Island Source: CAMGAL Plan Areas heavily dependent on fisheries and other related activities (marine transport, shipyards );

11 Table 1: Oil spill accidents in Galicia Accident Year Tonnes Km of coast spilled affected Economic damages Polycommander ,000 $480,000 in 70 s Urquiola , millions Andros Patria ,000 Aegean Sea , $300 million Prestige* ,000 2, million Source: Le Cedre (2016)

12 Ons Island A potential tourist destination Several famous Beaches Biodiversity (richness of fauna and flora) Refuge and growth of marine birds (80% of the total Iberian population) Cultural values

13 Characteristics of the simulated oil spill The oil spill takes places in the North Channel in the entrance to Pontevedra (one of the provinces of Galicia), the 26 of April of 2016 at 00:00 UTC. The oil spilled is of type IFO 180, which is an Intermediate fuel oil The accident causes a spill of 50m3 which moves to the Ons Island, as it can be seen in the following images Data provided by INTECMAR (a research center about marine issues)

14 Map 3: Movement of the oil spill Source: Elaborated by Instituto Tecnolóxico para o Control do Medio Mariño de Galicia (INTECMAR)

15 Map 4: Cleaning options according to Plan CAMGAL Violet: natural clean Blue: handmade collection, absorbent materials, among others Green: handmade collection with the support of machinery Source: CAMGAL Plan

16 Vulnerability Demographic vulnerability. Tourism vulnerability Fisheries vulnerability Light green: very low vulnerability Dark green: low vulnerability Beige: moderate vulnerability Orange: high vulnerability Red: very high vulnerability Environmental vulnerability Source: CAMGAL Plan

17 BENEFITS (AVOIDED DAMAGES): 2) Fisheries damages Map 8: Fisheries resources The total loss is about 39,255 at 2015 prices Blue: diving fishing: Yellow: on foot fisheries Source: CAMGAL Plan

18 BENEFITS (AVOIDED DAMAGES): 3) Tourism damages 65,000 tourists visit the Ons island annually The mean expenditure per day for each tourist with destination Galicia was about (INE, 2015) The economic damages could be about 6,395,125 at 2015 prices

19 BENEFITS (AVOIDED DAMAGES): 4) Marine Transport losses 137,500 tourists visit this island and the Cies Islands in a year The cost of the ticket to travel by boat is around 10 The economic losses in the local transport sector amount to t 1,375,000 at 2015 prices

20 BENEFITS (AVOIDED DAMAGES): 4) Environmental damages Loureiro et al. (2009) estimated that Spanish households were willingness to pay a mean of about per household (expressed in 2006 year currency) to prevent another accident like the Prestige oil spill. In Bueu municipality, there are around 4,006 households according to the official statistics (INE, 2011). The total environmental damage can be computed as 162,283 ( 175,903 at 2015 prices).

21 BENEFITS (AVOIDED DAMAGES): 5) Reputation damages in shellfisheries Loureiro (2014) found these damages represented a reduction in the average price of different types of clams for an amount of /kg during one year after the oil spill, /kg two years after, /kg three years after and even /kg four years after the accident (medium term damages). In year 2005, Bueu sold a total of 61,889 kg of different species of shellfish. The economic loss could arise to 23,827 considering the effects of one year after the accident due to the size of the spill ( 30,384 at 2015 prices).

22 COST: 1) Equipment to contain, clean and recovery at sea Hours /days Units employed Helicopter 3 hours 1 Multipurpose vessel (56 m of length) 48 hours 1 Salvamares: boats for fast interventions 48 hours 2 Technical staff 5 days 3 Truck 2 days 1 Sealing barrier Vikoman 2 days 200 meters Port barrier Markleen A600 2 days 100 meters Oceanic barrier RoBOOM days 200 meters Enclosure barrier NOFI Current Buster days Skimmer landfill Foilex 200 Sea Skimmer landfill Desmi 250 Hydraulic pump for landfill Skimmer Foilex 200 Sea Hydraulic pump for landfill Skimmer Desmi 250 Skimmer power unit for landfill Foilex 200 Sea Skimmer power unit for landfill Desmi days 2 days 2 days 2 days 2 days 2 days

23 COST: 1) Equipment to contain, clean and recovery at sea Clean-up costs Helicopter Multipurpose vesse l (56 m of length) Salvamares: boats f or fast intervention s Technical staff Truck Cost /hour o r Cost /day 8,334 cost pe r hour 879 cost per hour 350 cost per hour 956 cost per day 679 cost per day Hours /day s employe d Units Total cost ( 2013 price s) 3 hours 1 25, hours 1 42, hours 2 16,800 5 days 3 4,780 2 days 1 1,358 TOTAL 90,132

24 Clean-up costs COST Table 4: Containment and recovery at sea: equipment Cost per day of the equipment depending on their state Cost per day Cost per day of st Cost of consumpti of use and by on(similar to the c ost of reposition) Days employed Meters Total cost (20 13 prices) Sealing barrier Vikoman ,900 Port barrier Markleen A Oceanic barrier RoBOOM ,104 Enclosure barrier NOFI Current 5, ,335.6 Buster 600 Skimmer landfill Foilex 200 Se a Skimmer landfill Desmi , Hydraulic pump for landfill Ski mmer Foilex 200 Sea Hydraulic pump for landfill Ski mmer Desmi 250 Skimmer power unit for landfill Foilex 200 Sea Skimmer power unit for landfill Desmi 250 Means to fight agains pollution (26,188 at 2010 prices) ,073 TOTAL 50,965.3

25 Total Costs The CAMGAL Plan has carried an associated cost of 78,376,945 at 2015 prices, from implementation to the present. The duration of this Plan is of 4 years The yearly economic cost is 19,594,236 or 6,531,412 for each one of the three coastal provinces of Galicia.

26 Conclusion about the CBA for the CAMGAL Plan The total economic damages are between million at 2015 prices. The cost of the plan in the province is 6.53million. Therefore, this simulation passes the CBA.

27 Thank you!