The price tag of plastic pollution An economic assessment of river plastic The Priceprice tag of Plasticplastic Pollutionpollution | SectionContents title goes here
Contents
Introduction 04 Methodology 05 Model Mechanics 06 Tradeoffs and assumptions 09 Discussion 10 Conclusion 12 References 13 Authors, Key contacts 15
02 The Priceprice tag of Plasticplastic Pollutionpollution | Section title goes here The price tag of plastic pollution An economic assessment of river plastic
Marine litter affects key industries such as fisheries, aquaculture, tourism, commercial shipping, and local coastal governments. The economic costs associated with marine litter can be direct (i.e. cleanup activities, and potential loss in economic value) or indirect (i.e. impact on biodiversity and ecosystems).
To date, few studies have addressed the economic costs associated with marine litter. This limits the incentives and ability to address the build-up of marine litter at the source itself, before it enters the oceans. In this paper, we draw attention to the costs emerging from marine plastic pollution, and present a comprehensive assessment model to estimate the costs at a country level, associated with marine plastic litter that flows from land, typically via rivers, into the oceans and ultimately putting a price tag on plastic pollution.
03 The price tag of plastic pollution | Introduction
Introduction
It has been estimated that global emission Marine plastic debris has far reaching ill-effects and indirect impact of floating marine litter of plastic waste is in the range between that are indicated in an increasing number of to develop a comprehensive database and a 0.8-2.7 million metric tons per year via rivers publications from various scientific disciplines2. scalable assessment model to calculate the (study performed by The Ocean Cleanup1). Awareness of the harmful impact has led economic impact associated with marine plastic Mismanaged plastic waste that is discarded, to several initiatives from governments and pollution to coastal communities. By compiling not recycled, incinerated or stored in landfills volunteers aiming to curb the problem of data from existing research literature for may drain down rivers and waste water systems marine plastic pollution. Although the impact Europe, Asia, Africa, Middle East, the Americas ultimately meeting its fate at the sea. Here it of marine debris has been identified and and Oceania, we estimate that marine plastic slowly weathers and degrades over time into discussed in several reports at national and pollution could have resulted in an economic microplastic, accumulates on shorelines, sinks regional level, there is no local and comparable loss of USD 6 to USD 19 billion for 87 coastal to the seabed or floats on the sea surface of estimate on the economic loss to coastal countries in 2018. Our conclusion is that subtropical oceanic gyres. The infamous Great communities due to mismanaged plastic waste beyond obvious ecological arguments, there Pacific Garbage Patch, which is the largest that flows from land to oceans. is a strong economic and financial reason to reported accumulation zone of floating ocean address the marine plastic pollution challenge. plastic, is a good example depicting how our This paper provides an assessment model to This paper discusses specific features of the thirst for plastic is having consequences on a estimate the economic impacts of land sourced assessment model and presents the limitations planetary scale. Plastic is also now recognized marine plastic pollution. Through secondary of existing literature to stimulate further as a geological marker of our time for future research, we consolidated worldwide data on research in this field. Finally, the paper offers generations. marine litter, litter characterization, coastal a general discussion on analyses derived from population density, economic status, and direct the model outcomes, and conclusions.
1 The study of waste emissions into the ocean is under peer review. https://theoceancleanup.com/sources
2 Oceanography, Anthropogenic waste management, Real estate valuation (hedonic regression), Human biology, Marine biology
04 The price tag of plastic pollution | Methodology
Methodology
The methodology in this study focuses on 2. Designing the model • Establishing comparability: information 4. Model audit – The model data and the economic impact of plastic litter on • Identifying information: an extensive list of gathered from local and regional literature output were reviewed by multiple experts national economies and uses a sector-based indicators and focus sectors were collected on certain indicators such as beach cleanups, in areas such as river research, business approach to investigate the increased costs for from existing literature for five countries and costs for intercepting floating debris, was and operations, sustainability advisory, data governments and potential loss of economic out of the 87 countries in scope. The five not comparable because different studies analytics, and audit. The model audit focused value for key industries. This approach does not countries were selected on the basis of waste followed different procedures of information on three objectives: include the quantification of economic costs of density in waterways, geographical coverage gathering, differences in frequency of degradation of ecosystem goods and services and economic status. analyses, seasonality and geographic • to determine that input parameters were due to marine litter and the findings presented conditions at time of analyses, etc. In order to correctly referenced and interpreted, and here are therefore likely to significantly • Profiling information: the indicators were make the data between countries and regions reasonably extrapolated underestimate the total economic costs. classified into impact area and focus industry comparable, the data for such indicators was sectors. extrapolated from European studies. Model • the output from the model is reasonable The methodology is divided into four elements: indicators were extrapolated using local and ties back to the actual costs incurred or 1. determination of the scope of the model, • Designing model prototype: multiple economic parameters like purchase power budgets allocated in countries. The output 2. designing the model, evaluation dimensions were designed to parity, inflation, currency conversion, and costs should not appear to be substantially 3. data mining and calibration, and assess costs per focus sector. Mathematical waste outflow from land to ocean relative higher when that may not be the case, 4. model audit. formulas were designed to evaluate costs to the parameters in region of origin for per dimension. the base literature. • scalability of the database to add more 1. Determination of scope – The model countries and more focus sectors as focuses on economic impact in two areas 3. Data mining and calibration • Rationalizing dimensions: different information on the topic increases in future. • Gathering data: a data mining exercise was dimensions to estimate the economic • costs incurred for cleanup activities and conducted to gather model relevant data impact in the same focus sector could not • potential loss of economic value for for indicators identified while designing the be consistently applied to all countries established sectors in the Blue Economy3. prototype model. The database was compiled mainly because of issues like insufficient The economic costs are expressed as from information gathered via research data, and demographic differences between annual impact. 87 countries are considered papers, regional and local reports, news countries. Therefore, dimensions per sector for the impact assessment based on articles, and global datasets. were rationalized to use the ones that were the level of waste density in waterways consistently applicable to all countries. in the respective country.
3 All economic activities related to oceans, seas and coasts. Blue economy covers a wide range of interlinked established and emerging sectors https://ec.europa.eu/maritimeaffairs/sites/maritimeaffairs/files/docs/publications/what-is-the-blue-economy_en_1.pdf
05 The price tag of plastic pollution | Model Mechanics
Model Mechanics
In order to determine a method for assessing the economic Costs of marine plastic pollution are broadly animals and birds from ingestion of plastic impact of marine plastic pollution, we performed secondary classified as indirect costs and direct costs. debris, and a panoply of health concerns for humans. Marine pollution also results in loss research on six socio-economic areas; public health, marine Indirect costs: these costs can be viewed of aesthetic value of the environment which ecosystem, real estate, marine tourism, government, and in terms of economic value together with the has an economic cost in form of decreased long-term impact to biological ecosystem which real estate value of waterfront housing and fisheries & aquaculture. The model discussed in this paper is assessed qualitatively and is more severe deterrence of tourists from polluted beaches. focuses on economic assessment that is quantifiable for than the financial implications. The harmful impact to ecosystems has become evident from Based on literature review, we concluded 3 areas – marine tourism, government, and fisheries & numerous reports about marine animals getting that although indirect costs can be quantified aquaculture. Figure 1 below visualizes the classification of the injured and strangled by discarded fishing with several assumptions, the estimates are gear, risk of extinction for species of marine not always comparable between countries six areas by type of assessment.
Figure 1. Classification of socio-economic areas by type of assessment Price tag of plastic pollution
Qualitative Quantitative (Indirect impact) (Direct impact)
Fisheries & Marine Marine tourism Government Public health Real estate Aquaculture ecosystem (Loss to revenue) (Cleanup cost) (Loss to revenue)
Coastline Waterways Marinas Ports
06 The price tag of plastic pollution | Model Mechanics
or even within a country. Furthermore, Cleanup costs volume of plastic debris in overall waste Loss in economic value of Fisheries and despite sufficient awareness on the ecological As one of the significant actors in waste collected from beaches5. Aquaculture impact, existing information about the management, local municipalities and affected population is not collected on a governments play an instrumental role in Waterways – Similar to coastlines, the The presence of micro-plastics and debris in regular frequency nor following a consistent setting up waste management infrastructure potential cleanup costs are estimated for the the water bodies has adverse effects on the methodology. Therefore, the economic and investing in waste collection and length of waterways that are inhabited by marine biodiversity. Not only does this impact costs associated with public health, marine treatment value chains. As a result, a variable more than 300 people per square kilometer at the local ecosystems and food chain, but it also ecosystem and real estate are not included in but often significant percentage of the fiscal a distance of one kilometer from the shore of harms the fishery reserves, which are the main the quantitative part of the model. budget in most countries is reserved for the waterways4. The cost of cleanup is identified source of sustenance for the fisheries sector. aforementioned activities. from European studies and extrapolated to all The degradation of water quality, furthermore, Direct costs: these are economic costs arising countries based on the relative purchase power compounds the problem by creating directly from damage to an industry or costs Although volunteering cleanup activities led parity, waste density in waterways, inflation and unfavorable conditions for aquaculture. Fish linked to an activity. Direct costs are measured by NGOs, concerned citizens, and businesses currency conversion to US dollars. The overall larvae have high mortality rates and are on a periodic basis, are comparable and can are increasingly evident across regions, such cost estimate is attributed to plastic by using a sensitive to water quality and nutrient feed. be quantified. Such costs imply the short term activities are rather sporadic, and it is difficult secondary research based ratio of the average Any impact on the survival rates can result in and immediate financial impact to society. In to correctly identify costs associated with such volume of plastic debris in overall floating waste significant economic losses to the farmers. this study, we focused on quantifying direct activities. Government sanctioned cleanup in waterways5. A single loss of harvest can bring farmers costs and developed an assessment model to activities are more systematic and have a to bankruptcy due to higher investment estimate costs arising from cleaning stranded dedicated budget for the activity. We Port and marina – The potential cleanup costs requirements and informal farming practices. or floating plastic from inhabited coastline, therefore model the government as the are estimated by identifying costs to intercept rivers, ports and marinas, and the potential loss primary orchestrator for cleanup activities floating marine debris in ports and marinas In the model, the loss in economic value in economic value to marine tourism, fisheries and hence the associated costs. As the scope from European studies and extrapolating the is modelled by analyzing the fisheries and & aquaculture. of this study is limited to coastal countries, four costs to all countries in scope based on same aquaculture revenue of a country and allocating cleanup areas have been identified namely; methodology as followed for coastline cleanup. a loss percentage in the range of 0.3 to 5% The model used to quantify direct costs is coastlines, waterways, marinas and ports. The ports and marinas are identified from (Takehama 1990, Ten Brink et al 2009). Similar based on ~3,500 data points sourced via global datasets and a plastic to waste ratio in to potential loss of economic value for tourism, secondary research. Secondly, indicators such Coastlines – An assessment of potential waterways is used to assess the costs. an uncertainty range is considered instead of as waste density and waste outflow from rivers cleanup costs is made for the length of a fixed value to ensure the exploratory nature per country are based on research and insights coastline that is inhabited by more than 300 It is important to note that any revenue of the model and account for regional and from The Ocean Cleanup. The model can people per square kilometer and a distance generated from the collected waste is not national differences. be extended as further information is of one kilometer from the coastline4. The cost included in the scope of the model. This made available from research in other of cleanup is identified from European studies exclusion has been made to manage the economic sectors. and extrapolated to all countries based on complexity of the model. This ensures the relative purchase power parity, waste consistency of data irrespective of different outflow from land into ocean, inflation and maturity levels in the waste management 4 currency conversion to US dollars. The overall chains for the countries in scope. It is assumed that coastlines which are polluted but not inhabited wil not be cleaned up cost estimate is attributed to plastic by using a
secondary research based ratio of the average 5 Waste characterization from Waste Atlas and Ocean Conservancy 2017, 2018
07 The price tag of plastic pollution | Model Mechanics
Additionally, a factor for the plastic to waste Loss in economic value is modelled by ratio is considered for all zones to account analyzing the marine tourism revenue of a for the plastic debris in the overall waste. country and allocating a percentage of potential loss attributed to plastic pollution. Due to the The loss of revenue, for fisheries & aquaculture, uncertain nature of the loss percentage, being results from the inaction towards management influenced by the waste management maturity and collection of floating plastic debris. of a country, an uncertainty range between 0.3 to 3% (Takehama 1990, Ten Brink et al 20096) Loss in economic value of Marine Tourism is considered, instead of a fixed value. This ensures the exploratory nature of the model The aesthetic value of the environment and accounts for differences among is greatly affected by mismanaged waste. the countries. Stranded debris can also cause injuries and long-term health concerns to humans. For the countries where the economic The combination of unpleasant experience value from marine tourism is unavailable, together with health and safety risks can the overall tourism revenue is considered result in a snowball effect of reduced tourism with a tourism coastal factor ratio identified activity and loss of livelihood for businesses from OECD studies (OECD 2016). Additionally, associated with tourism. Although the nature a factor for the plastic to waste ratio is of these impacts is both ecological and considered for all countries to account for economic, the reliance of coastal nations on the plastic debris in the overall waste. marine tourism deems it an important sector of the overall economic impact.
6 As losses to marine tourism in specific are considered, the percentage loss of economic value to tourism is set at 3% instead of 5% to be on the conservative side of estimating costs
08 The price tag of plastic pollution | Tradeoffs and assumptions
Tradeoffs and assumptions
This paper discusses the economic costs of downstream flow of mismanaged waste land sourced marine plastic pollution. The in rivers that flow cross-country, ocean uncertainties in the model dynamics occur currents, and waste trade between countries. from the following tradeoffs and assumptions: The model discussed in this paper is based Input data points are based on secondary on estimates of waste density in rivers in research – research papers, reports, news each country in scope and the outflow articles, global databases. of waste from the respective rivers into sea. Therefore, the model does not take The costs are limited to cleanup of stranded into account cross country plastic waste or floating plastic litter along coastlines and in movements which could be a topic to explore waterways respectively. and add to the model dynamics in future.
In order to have comparable costs relating to The model does not factor in political cleanup activities, costs are extrapolated from scenarios and geographic catastrophes. European studies. Country specific economic For example: tourism could be affected parameters and plastic waste outflow are by political discontent, or geographic considered for extrapolation. catastrophes like tsunamis, cyclones etc.
Literature review points out that plastic Cleanup activities could reduce debris is found stranded on remote beaches. contamination levels which would result However, we assume that local municipalities in lowering the loss of economic value in would have a budget for beach or river cleanup key economic sectors. However, as this only if the coastline is inhabited. This model study deals with annual economic loss, this considers coastline length that is inhabited by dilemma is not factored into calculations. more than 300 people within 1 kilometer from the coastline.
Waste generated in a country could end up as debris on the beaches or river coastlines of another country mainly because of
09 The price tag of plastic pollution | Discussion
Discussion
Based on the waste density in rivers, it is into oceans. The economic impact of marine identified that 19 Asian countries7 account for plastic pollution in these countries constitutes 82% of global plastic waste flowing from land 86% of the global costs estimated in this study.
Figure 2. Economic impact per geographic region8
Europe Cleanup costs $73 to $308 Mn Revenue loss $0.1 to $1 Bn
North America Asia Cleanup costs $47 to $139 Mn Cleanup costs $5.3 to $14 Bn Revenue loss $44 to $465 Mn Revenue loss $0.2 to $2.3 Bn
Middle East Cleanup costs $0.5 to $1 Mn Revenue loss $2 to $29 Mn
South America Oceania Cleanup costs $196 to $401 Mn Cleanup costs $1 to $3 Mn Revenue loss $23 to $276 Mn Revenue loss $2 to $20 Mn Africa Cleanup costs $25 to $69 Mn Revenue loss $8 to $92 Mn 7 PH, MY, HK, CH, SG, VN, TH, ID, IN, BR, JP, LK, MM, KO, TW, BG, KH, PR, TL
8 The countries in scope are highlighted in blue. Look up https://theoceancleanup.com/rivers/ for a dynamic visualization of the economic costs
10 The price tag of plastic pollution | Discussion
The graph illustrates region-wise segregation of costs into cleanup and loss of economic value The following comparative analyses of per capita costs per region indicates that Asia has in marine tourism, and fisheries & aquaculture. As per the cost estimates from the assessment significantly higher than average costs for cleanup per capita most likely caused by high model, cleanup activities would constitute 82% of the overall economic impact globally. emissions of waste into the ocean and the population density near coastal areas. Europe and North America are expected to have the highest average loss to economic value from marine tourism, fisheries & aquaculture while cleanup costs are significantly lower than global average.
Figure 3. An overview of the cost components in 2018 by region, values in USD million Value in USD per capita
100% Region Cleanup cost Loss to economic value Total economic impact Asia 2.51 0.32 2.83 80% Europe 0.29 0.94 1.22 North America 0.24 0.65 0.89 60% Latin America 0.54 0.27 0.81 Oceania 0.06 0.32 0.37 40% Middle East 0.01 0.12 0.13 Africa 0.06 0.06 0.12 20% Global avg. 1.61 0.36 1.97