Valuation Study

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Health Damage of Diesel Vehicle Emissions

Attributes

Medium: Air

Country: Sri Lanka

Analytical Framework(s): Cost of Illness Approach

Study Date: 2004

Publication Date: 2006

Major Result(s)

Resource/Environmental Good LKR, per case
(2004)
Adjusted COI estimate for asthma (in-patient)1 9,074.00
Adjusted COI estimate for asthma (out-patient) 1,600.00
Adjusted COI estimate for pneumonia (in-patient) 13,754.00
Adjusted COI estimate for pneumonia (out-patient) 1,492.00
Adjusted COI estimate for acute respiratory tract infection (out-patient) 526.00
Adjusted COI estimate for lower respiratory tract infection (in-patient) 7,384.00

Study Note: The study identified several pollution control options that would bring net benefits to the city. In other words, the cost of setting them up would be less than the healthrelated benefits they would deliver. In light of these findings, the study recommends that an effective vehicle inspection and maintenance program and an increase in road user charges be considered priority projects for implementation.

Study Details

Reference: Sunil Chandrasiri. 2006. Health Impact Of Diesel Vehicle Emissions: The Case Of Colombo City. EEPSEA Research Report, No. 2006-RR2.

Summary: This study makes an attempt to assess the health effects of diesel vehicle exhaust emissions in Colombo and the costs of various pollution control interventions. As far as we are aware, this is one of very few studies which has taken into account the effect of both PM10 and PM2.5 in estimating the potential health damage of autodiesel emissions. The study begins with an analysis of structural changes in vehicle population and auto-fuel consumption in Sri Lanka. This is followed by an assessment of ambient air quality levels in Colombo based on both sample observations and statistical estimation methodologies. The estimates reveal that diesel vehicles account for about 89 per cent of PM10 emissions in Colombo. The estimated health damage is in the region of Rs. 22 to 17 billion per annum based on high and low impact scenarios. Of the various pollution control measures, reduction of the price differential between petrol and diesel ranks as the most beneficial intervention followed by inspection and maintenance programs. In overall terms, policy-oriented pollution control options take priority over technical solutions in reducing potential health damage due to auto-diesel emissions.

Site Characteristics: The vehicle population in Sri Lanka significantly increased during the postliberalization period which commenced in 1977. The high growth of diesel-powered vehicles and the high rate of auto-diesel consumption were clearly noticeable throughout the 1990s. This was attributed to the high economic growth, auto-fuel pricing policy (on petrol and diesel) and fiscal policy on vehicle imports. A distinctive feature of auto-fuel (petrol and diesel) pricing in Sri Lanka is the significant price differential between petrol and diesel. In fact, in the 1990s, Sri Lanka was the only country which maintained the highest disparity between petrol and diesel prices. The discriminatory pricing policies adopted by successive governments over the past four decades have been highly favourable towards diesel users. Similarly, the fiscal policy on vehicle imports has also been highly discriminatory against certain categories of vehicles. Furthermore, the road user charges applicable to different categories of vehicles do not fully capture road damage costs. These distortions have led to high growth of diesel-powered vehicles which use low quality diesel (i.e., 0.8 per cent of sulfur). One of the major environmental problems associated with this development is the deterioration of ambient air quality levels with respect to particulate matter of size 2.5 and 10 microns (PM2.5 and PM10). Particulate matter is a major air pollutant measured in terms of microns (µm) in diameter. Particles smaller than 10 microns (PM10) are called inhalable particulate matter and those smaller than 2.5 microns (PM2.5) are called fine or respirable particulate matter.

Comments: The study identified several pollution control options that would bring net benefits to the city. In other words, the cost of setting them up would be less than the healthrelated benefits they would deliver. In light of thesefindings, the study recommends that an effective vehicleinspection and maintenance program and an increase inroad user charges be considered priority projects forimplementation.

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