COST OF POLLUTION IN CHINA POLLUTION OF COST CONFERENCE EDITION 39236 COST OF POLLUTION Public Disclosure Authorized IN CHINA ECONOMIC ESTIMATES OF PHYSICAL DAMAGES Public Disclosure Authorized The State Environmental Protection Administration 115 Xizhimen Nanxiaojie, Beijing 100035, P. R. China Tel: 86 (10) 6653.2331 Fax: 86 (10) 6653.2424 www.sepa.gov.cn Public Disclosure Authorized Rural Development, Natural Resources and Environment Management Unit, East Asia and Pacific Region, The World Bank 1818 H Street, NW, Washington DC 29433, USA Tel: + 1 (202) 458.4073 Fax: + 1 (202) 477.2733 www.worldbank.org/eapenvironment The World Bank Office, Beijing THE WORLD BANK 16th Floor, China World Tower 2 No. 1 Jianguomenwai Avenue Beijing 100004, P. R. China Tel: + 86 (10) 5861.7600. Public Disclosure Authorized Fax: + 86 (10) 5861.7800. www.worldbank.org.cn THE GOVERNMENT OF THE THE WORLD BANK PEOPLE’S REPUBLIC OF CHINA Environmental and Social Development Unit East Asia & Pacific Region Ph: 202-458-5660 Fax: 202-522-1666 e-mail: [email protected] COST OF POLLUTION IN CHINA ECONOMIC ESTIMATES OF PHYSICAL DAMAGES The World Bank State Environmental Protection Administration, P. R. China This publication is available online at www.worldbank.org/eapenvironment. Front cover photos: John D. Liu. From the film “A Green Call” prepared by the Environmental Edu- cation Media Project in Beijing in cooperation with the World Bank. Cover design: Circle Graphics, Jostein Nygard Rural Development, Natural Resources and Environment Management Unit East Asia and Pacific Region The World Bank Washington, D.C. February, 2007 This volume is a product of an expert team from China, international experts from various countries and the staff of the World Bank. 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For permission to photocopying or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA, telephone 978-750-8400, fax 978-750-4470, www.copyright.com. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA, fax 202-522-2422, e-mail [email protected]. Table of Contents ACKNOWLEDGMENTS v ABBREVIATIONS AND ACRONYMS vii FOREWORD ix EXECUTIVE SUMMARY xi 1 Overview 1 2 Health Impacts of Ambient Air Pollution 19 3 Health Impacts of Water Pollution 33 4 Valuation of Environmental Health Risks 67 5 Non-Health Impacts of Water Pollution 79 6 Non-Health Impacts of Air Pollution 111 CHINA–ENVIRONMENTAL COST OF POLLUTION iii Acknowledgments This Report is the result of a collaborative worked on statistical health data. A team from research effort by a joint Chinese and interna- the Rural Water Supply Central Disease Control tional expert team being contracted by the (CDC) lead by Fan Fucheng and Tao Yong pro- World Bank. vided assistance on particularly drinking water In Beijing, the overall team was lead by Guo and partly health related data. Xiaomin, a senior advisor to the State Environ- In Shanghai, a team lead by Prof. Peng Xizhe mental Protection Administration (SEPA). His at the Fudan University, included Chen Yan, Tian team included Yu Fang from the China Acad- Wenhua and Cheng Yuan. In Chongqing, a team emy of Environmental Planning (CAEP), who lead by Ass. Prof. Chen Gangcai at the Chongqing has handled the overall technical coordination, Academy of Environmental Science included Zhou Guomei coordinated the Valuation of Wang Fei, Ran Tao, Zhou Zhien, Liu Lanyu, and Environmental Health Risk (VEHR) study Chen Derong in addition to Yang Xioalin, Xiang together with Zhang Kai, Zhou Jun and Wu Xinzhi and Qin Lei from Chongqing CDC and Yuping from the Policy Research Center for Tang Guil from Chongqing MoH. Environment & Economy. Pan Xiaochuan at International experts have included Haakon the Medical College of Peking University lead a Vennemo and Henrik Lindhjem (ECON), team on dose response function development, Kristin Aunan and Hans Martin Seip (CICERO), which included Wang Lihua, and Jiang Jinhua. Alan Krupnick, Sandy Hoffmann and Michael Monitoring data was provided by the China McWilliams (RFF), Bjorn Larsen and Ramon National Monitoring Centre by Zhuo Jianping, Ortiz (independent consultants). Ling Lixin, Fu Deqing and WuHuaimin. Zhao At the World Bank, the project was coordi- Yaoming has participated from the Ministry of nated by Jostein Nygard, task team leader Agriculture. (EASRE) under the overall supervision of A team from the Water Resources and Magda Lovei (EASOP). Substantive inputs were Hydropower Planning and Design Institute of provided by Maureen Cropper (DEC), Tamer the Ministry of Water Resources (MWR) lead Samah Rabie (ECSHD), while technical sup- by Li Yuanyuan, which also included Zhou Zhi- port was provided by Marija Kuzmanovic and wei, Cao Jianting and Zhangwei provided assis- Andrew Murray (EASEN/EASRE). tance on water scarcity subjects. Gao Jun and The current report has mainly be written by Xu Ling from the Ministry of Health (MoH) Maureen Cropper, Tamer Rabie, Haakon Ven- CHINA–ENVIRONMENTAL COST OF POLLUTION v ACKNOWLEDGMENTS nemo, Kristin Aunan, Hans Martin Seip, Yu EASRE), Anjali Acharya and Giovanni Ruta Fang, Guo Xiaoming and Jostein Nygard, while (ENV) and Charles E. Di Leva (LEGEN). the extensive Chinese expert team has mainly Coordination of the study within SEPA, has been writing the progress and background been made by their Foreign Economic Cooper- reports that this report builds upon. The RFF, ation Office (FECO) with Wang Xin and Xie Shanghai and Chongqing teams have been writ- Yongming. Personnel within SEPA’s Planning ing the “Willingness to Pay for Reduced Mortal- and Finance, Pollution Control and Science and ity Risk Reduction in Shanghai and Chongqing” Technology departments in addition MoH per- study, which is also being published as a sepa- sonnel have reviewed the report extensively. rate World Bank discussion paper report. The report was edited by Robert Livernash, Mainly based upon work by Bjorn Larsen, a consultant. Circle Graphics designed and man- separate discussion paper report “China Health aged desktopping. Production was supervised by Effects of Indoor Air Pollution” is also being Jaime Alvarez. Photos provided by John Liu, the published. Environmental Education Media Project, from Peer reviewers included Chris Nielsen (Har- a World Bank-contracted film “A Green Call”. vard University), Hao Jiming (Tsinghua Uni- Chinese translation was provided by the transla- versity), Kseniya Lvovsky (World Bank, tion desk at SEPAs Department of International SASES), Rita Klees (World Bank, ENV), and Cooperation. Anil Markandy (ECSSD). Additional reviews Finally, we would like to express our gratitude and comments were provided by David Dollar, to the Government of Norway and Finland, Bert Hofman and Andres Liebenthal (World which provided the main trust funds (TFESSD) Bank, Beijing), Maria Teresa Serra (EASES/ to carry out the study. The study was also sup- EAPVP) Julien Labonne and Jian Xie (EASES/ ported by the World Bank’s own funding. vi CHINA–ENVIRONMENTAL COST OF POLLUTION Abbreviations and Acronyms ACS American Cancer Society AHC Adjusted Human Capital BOD Biological Oxygen Demand BOH Bureau of Health (at local levels) CAEP Chinese Academy for Environmental Planning CAES Chongqing Academy of Environmental Sciences CDC Center for Disease Control and Prevention CECM Chinese Environmental Cost Model CEVD Cerebrovascular Disease CNHS China National Health Survey CO Carbon Monoxide COD Chemical Oxygen Demand COI Cost of Illness COPD Chronic Obstructive Pulmonary Disease CSMI Clear Water and Sewage Mixed Irrigation CV Contingent Valuation CVD Cardiovascular Disease DALY Disability-Adjusted Life Year DC Dichotomous Choice Method DSP Disease Surveillance Point ECM Environmental Cost Model EU European Union EV Emergency Visit GDP Gross Domestic Product GIOV Gross Industrial Output Value HEI Health Effects Institute HH Household ICD International Classification of Disease CHINA–ENVIRONMENTAL COST OF POLLUTION vii ABBREVIATIONS AND ACRONYMS IWQI Integrated Water Quality Index MoA Ministry of Agriculture MoH Ministry of Health MWR Ministry of Water Resources NAPAP National Acid Precipitation Assessment Program NBS National Bureau of Statistics NOx Nitrogen Oxides O3 Ozone OPV Outpatient Visit OR Odds Ratio PC Payment Card Method PM Particulate Matter PM10 Particulate Matter of Less than 10 μm in diameter PPP Purchasing Power Parity PSI Pure Sewage Irrigation QALY Quality Adjusted Life Year RD Respiratory Disease RFF Resources for the Future RMB Chinese Currency, Yuan RR Relative Risk SCE Standard Coal Equivalent SEPA State Environmental