Valuation Study

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Impact of Adverse Health Effects of Indigenous Fuels

Attributes

Medium: Air

Country: Philippines

Analytical Framework(s): Dose-Response Approach

Study Date: 2000

Publication Date: 2003

Major Result(s)

Resource/Environmental Good PHP
(2000)
PHP
(2014)1
USD
(2014)2
Total health effect3 2,887,000,000.00 4,831,452,240.00 108,024,313.59
Mortality 2,416,000,000.00 4,043,224,320.00 90,400,672.55
Morbidity 471,000,000.00 788,227,920.00 17,623,641.05

About the Inflation Adjustment: Prices in Philippines (PHP) changed by 67.35% from 2000 to 2014 (aggregated from annual CPI data), so the study values were multiplied by 1.67 to express them in 2014 prices. The study values could be expressed in any desired year (for example, to 2020) by following the same inflation calculation and being sensitive to directional (forward/backward) aggregations using your own CPI/inflation data.

Study Note: Changes in the level and spatial pattern of emissions from power generation were estimated using a rapid assessment approach. The incremental benefit was valued using a damage function approach focusing on four coal-fired power plants in Luzon, which together account for a significant share of the country's coal-based and total generating capacity. The approach involved modeling the changes in ambient concentrations of PM10, SO2 and NO2, determining the incremental health effects and valuing these in economic terms. The study focused on adverse health effects using dose-response functions established in other studies and economic values based on the benefit transfer technique.

Study Details

Reference: Elvira M. Orbeta. 2003. Air Quality Impacts of Increased Use of Indigenous Fuels for Power Generation in the Philippines. EEPSEA Research Report, No. 2003-RR3.

Summary: This study assesses the environmental and health impacts of the development of indigenous and renewable energy sources in the Philippines. It finds that, over the period 2001-2011, such developments would result in less air pollution than a scenario in which only current energy sources are developed. The study also finds that, whatever energy sources are used, the planned increase in generating capacity in the country will result in increases in overall levels of air pollution. Local coal is singled out as a particularly polluting energy source. Overall the study recommends a number of pollution reduction initiatives including improved pollution monitoring and the promotion of energy efficiency.

Site Characteristics: The power industry of the Philippines, a government monopoly until the passage of the Electric Power Industry Reform Act in 2001, has had a particularly troubled history. Power sector reform has been extensively studied but less attention has been given to its environmental impact. This study assessed the air quality impact and the incremental benefits of increased use of indigenous energy resources for power generation in the Philippines during the period 2002-2011 - in other words, a "high indigenous" scenario, relative to the base case or "business as usual" scenario. In particular, the study quantified the likely changes in the level and spatial pattern of emissions from power generation and valued the incremental benefit of operating four coal-fired power plants under a high indigenous scenario. Based on the power supply projections, a high indigenous scenario envisioned in the 2002-2011 Philippine Energy Plan is projected to generate significant incremental impact in air quality, particularly in Luzon, relative to the base case.

Comments: Changes in the level and spatial pattern of emissions from power generation were estimated using a rapid assessment approach. The incremental benefit was valued using a damage function approach focusing on four coal-fired power plants in Luzon, which together account for a significant share of the country's coal-based and total generating capacity. The approach involved modeling the changes in ambient concentrations of PM10, SO2 and NO2, determining the incremental health effects and valuing these in economic terms. The study focused on adverse health effects using dose-response functions established in other studies and economic values based on the benefit transfer technique.

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