External Cost Values to be Applied in the EE IO Framework of EXIOPOL

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External Cost Values to be Applied in the EE IO Framework of EXIOPOL Wolf Müller, Philipp Preiss, Rainer Friedrich Institute of Energy Economics and the Rational Use of Energy (IER), University of Stuttgart, 9 June 2011, Berkeley 1

Estimation Damage Cost Values for 41 airborne pollutants, including i. Classical air pollutants (SO 2, NO X, NMVOC, NH 3, CO, PM 2.5, PM coarse ), ii. heavy metals (As, Cd, Cr, Cu, Hg, Ni, Pb, Se, Zn), iii. greenhouse gases (CH 4, CO 2 and N 2 O) and iv. Dioxins, POPs, Pesticides, HCH, PCP, PAH, Benzo(b)fluoranthene, Benzo(k)fluoranthene, Benzo(a)pyrene, Indeno(1,2,3-cd)pyren, Paraffin's 43 Countries i. EU-27 Member States, ii. 4 European countries: Norway, Switzerland, Russia, Turkey iii. 12 non-eu countries: Australia, Brazil, Canada, China, India, Indonesia, Japan, Mexico, South Africa, South Korea, Taiwan and USA 130 Sectors covering all parts of economic activities in the countries Wolf Müller 9 June 2011 2

Impact Pathway Approach (www.externe.info, EcoSense, NEEDS-Project) Pollutant/Noise Emission Transport and Chemical Transformation; Noise Propagation Differences of Physical Impacts Monetary Valuation Calculation is made twice: with and without project! Wolf Müller 9 June 2011 3

In EXIOPOL: Classification of Sectors According Spatial Characteristics In EU-Project EXIOPOL spatial characteristics have been identified for 130 sectors by i. defining the share of total emissions released at different stack heights ii. defining the share of emissions released in urban and rural areas for each of the stack heights transport / traffic low stack high stack industry type name < 20m 20<x<100m >100m thereof: thereof: thereof: share urban rural share urban rural share urban rural share Manufacture of cement, lime and plaster 20% 80% 20% 20% 80% 20% 60% Production of electricity by coal 100% Other land transport 100% 33% 67% Research and development 100% 90% 10% medium stack Wolf Müller 9 June 2011 4

NEEDS recommend: WTP for Reduction of Health Risks Health end-points Euro2000 per case / per YOLL Core Endpoints Increased mortality risk (infants) 3,000,000 New cases of chronic bronchitis 200,000 Increased mortality risk - YOLLacute 60,000 Life expectancy reduction - YOLLchronic 40,000 Respiratory hospital admissions 2,000 Cardiac hospital admissions 2,000 Work loss days (WLD) 295 netto Restricted activity days (netrads) 130 Minor restricted activity days (MRAD) 38 Lower respiratory symptoms 38 LRS excluding cough 38 Cough days 38 Medication use / bronchodilator use 1 http://www.needs-project.org/ Wolf Müller 9 June 2011 5

Deriving Damage Cost Values per Unit Emission Application of EcoSenseWeb model i. Estimations include classical airborne pollutants such as NO X, SO 2, NH 3, NMVOC and primary particles (PM 2.5 and PM 10 ) ii. Country-specific external cost values for EU-27 Member States plus NO, TR, RU, CH in Euro/Tonne which differ between: 1. levels of stack height 2. emissions in urban or rural areas for each country (for primary PM) For other pollutants: Application of LCIA data from IMPACT2002+ i. No differentiation between levels of stack heights or geographical location ii. For the monetary valuation the following values have been derived in NEEDS Impact Ecosystem Quality Human Health Euros 0.47 2000 / PDF 40,000 2000 / DALY Wolf Müller 9 June 2011 6

Monetary values for medium stack height in EU-27 External costs (Euro 2000 per tonne) 1.E+11 1.E+10 1.E+09 1.E+08 1.E+07 1.E+06 1.E+05 1.E+04 1.E+03 1.E+02 1.E+01 1.E+00 SOx NOx NMVOC NH3 PM2.5 PMcoarse As Cd Cr Hg Ni Pb Dioxins CH4 CO CO2 N2O Cu Se Zn HCH PCP HCB Benzo(b)fluoranthen Benzo(k)fluoranthene Benzo(a)pyrene Indeno(1,2,3- Aldrin Chlordane DDT Dieldrin Endrin Heptachlor Mirex Toxaphene PCBs Wolf Müller 9 June 2011 7

Example: Monetised damages of Primary PM2.5 emissions from cement production in Germany Total emissions of PM2.5 in 2000: 2,613.54 t (EEA data) low stack medium stack high stack shares < 20m 20<x<100m >100m total total share urban rural share urban rural total share Manufacture of cement 20% 80% 20% 20% 80% 20% 60% Emissions of PM2.5 (in t) low stack medium stack high stack >100m < 20m 20<x<100m total urban rural total urban rural total Manufacture of cement 522.71 418.17 104.54 522.71 418.17 104.54 1,568.12 2000 /tonne low stack (3-20m) medium stack (20-100m) high stack (<100m) Germany rural urban rural urban PM2.5 41,964.00 91,481.52 41,964.00 43,222.92 21,899.00 Total external costs: 99,443,683 2000 Wolf Müller 9 June 2011 8

Thank you very much for your attention! Wolf Müller 9 June 2011

Links EXIOPOL project http://www.feem-project.net/exiopol/ NEEDS project http://www.needs-project.org/ ExternE project series http://www.externe.info/ Contact: wolf.mueller@ier.uni-stuttgart.de Wolf Müller 9 June 2011