Valuation Study

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Environmental and Health Effects of Pig Waste


Medium: Animals, Plants and/or Others

Country: Philippines

Analytical Framework(s): Economic Analysis

Study Date: 1999

Publication Date: 2000

Major Result(s)

Category Resource/Environmental Good PHP
Economic Analysis Net present value at 6.3% pollution reduction of backyard biogas project3 1,379,000.00 2,364,323.08 52,862.86
Economic Analysis Net present value at 6.3% pollution reduction of commercial biogas project 1,876,000.00 3,216,439.52 71,914.96
Economic Analysis Net present value at 6.3% pollution reduction of organic fertilizer/pelleting plant 461,000.00 790,393.72 17,672.07
Health Effects Respiratory problems (cost per annum, per household) 6,799.50 11,657.88 260.65
Health Effects Bronchitis (cost per annum, per household) 12,756.00 21,870.42 488.99
Health Effects Gastrointestinal problems (cost per annum, per household) 4,325.50 7,416.16 165.81
Health Effects Other ailments (cost per annum, per household) 3,465.00 5,940.81 132.83

About the Inflation Adjustment: Prices in Philippines (PHP) changed by 71.45% from 1999 to 2014 (aggregated from annual CPI data), so the study values were multiplied by 1.71 to express them in 2014 prices. The study values could be expressed in any desired year (for example, to 2022) by following the same inflation calculation and being sensitive to directional (forward/backward) aggregations using your own CPI/inflation data.

Study Note: The general objective of this project is to provide an economic assessment of the environmental consequences of and pollution control options for backyard and commercial piggeries. Specifically, it aimed to trace the flow of waste from backyard and commercial pig farms and identify on-site and off-site externality effects of the activity; to evaluate the extent to which backyard and commercial pig farms internalize (if at all) these externalities; and, to evaluate the costs and benefits of particular technological and institutional options to address pollution from backyard and commercial pig waste.

Study Details

Reference: Ma. Angeles O Catelo, Moises A. Dorado, Elpidio Agbisit, Jr. 2000. Backyard and Commercial Piggeries In The Philippines. EEPSEA Research Report, No. 2000-RR.

Summary: The increases in hog population have created and exacerbated various environmental, health and other problems. In the Philippines, what is ironic is that while hog output and operation is preponderantly backyard and the bulk of waste is generated in these farms, current regulations and instruments seem virtually unable to influence backyard operators to undertake pollution mitigating activities. Small commercial farms (21-999 heads as per BAS classification) are also practically exempt from monitoring and compliance because the wastewater discharge standard of 30 cu m per day is more or less equivalent to 1,000 heads of hogs being. With the decentralization of government, the greater responsibility of monitoring compliance and environmental quality now lies on the local government units (LGUs). However, regulations and guidelines for small-scale projects like backyard and small commercial piggeries are very few, not clear-cut, and not uniform across municipalities. For the medium to large scale hog farms, although they face regulations, enforcement is weak, and this has been attributed largely to lack of political will and lack of. Indeed, there seems to be a limited amount of the local literature concerning the economic assessment of the environmental problems caused by backyard and commercial hog production as well as the pollution control options for curbing waste from these farms. It is in such areas that this project hopes to shed more light on.

Site Characteristics: The province of Laguna, which ranks fourth in backyard hog production and third in commercial hog production in Region IV (Southern Tagalog) has been chosen as the study area. Specifically, the municipality of Majayjay was chosen as the project site since its typology is believed to be an approximation of all peri-urban backyard and commercial hog systems. The absence of waste and wastewater treatment appears to be almost universal in commercially oriented hog operations in the Philippines. Majayjay is a good representative case in point. Hog raisers in this municipality dump their wastes directly into creeks, streams and canals that find their way into the rivers. Furthermore, an initial exploratory survey conducted in this municipality revealed that there were residents complaining of foul odors from pig pens although no collective formal complaint was raised.

Comments: Due to the extensive technical data requirements, only a partial economic analysis was carried out in evaluating the health and environmental impacts of the pollution control options for hog waste. It is recognized that a more meaningful analysis will require a valuation of all the potential on-site and off-site environmental effects of various pollution control options. The financial and economic analyses of the control options also exclude a detailed market aspect of the output and by-product of the proposed pollution abatement strategies.