Report 2005-043 Developing Guidelines for Economic Evaluation of Environmental Impacts in EIAs PART II: Case studies & Dose-response literature ecen ECON-Report no. 2005-, Project no. 33360 Public ISSN: 0803-5113, ISBN 82-7645-788-6 HLI/JMS,HVE , 11. May 2005 Developing Guidelines for Economic Evaluation of Environmental Impacts in EIAs PART II: Case studies & Dose response literature Commissioned by SEPA and NORAD ECON Analysis P.O.Box 5, 0051 Oslo, Norway. Phone: + 47 45 40 50 00, Fax: + 47 22 42 00 40, http://www.econ.no Table of Contents: 1 INTRODUCTION.......................................................................................... 1 2 CASE STUDY REPORT FOR AIR..............................................................2 2.1 Background ..........................................................................................2 2.1.1 Criteria for Case Selection ...............................................................2 2.1.2 Project Description ...........................................................................3 2.1.3 Case Project EIA..............................................................................4 2.1.4 EIA Conclusion................................................................................ 8 2.1.5 Implications from EIA.....................................................................8 2.2 Methodol ogy........................................................................................ 9 2.2.1 Workframe of Economic Evaluation on EIA..................................9 2.2.2 Evaluation Methods ....................................................................... 10 2.3 Economic Evaluation of Environmental Impact .................................11 2.3.1 Procedures...................................................................................... 11 2.3.2 Evaluation process ......................................................................... 16 2.3.3 Discussion ......................................................................................28 2.4 Findings and Conclusions ..................................................................30 2.4.1 Support of EIA to economic evaluation ........................................30 2.4.2 Applicability of the Economic Evaluation .....................................30 2.5 References ..........................................................................................31 3 CASE STUDY REPORT FOR WATER......................................................33 3.1 Background Information .................................................................. 33 3.1.1 General Information of the Project................................................33 3.1.2 Distribution of Surface Water........................................................37 3.2 Introduction of EIA Report of the Case.............................................38 3.2.1 General Introduction of EIA..........................................................38 3.2.2 Evaluation Result of EIA...............................................................39 3.2.3 Conclusion of the EIA Report .......................................................43 3.3 Case Study.........................................................................................44 3.3.1 Determine the Area for EEEI.........................................................44 3.3.2 Identification of Water Environmental Impact Stressors and Calculation.................................................................................................... 44 3.3.3 Screening the water environmental impacts ..................................49 3.3.4 Quantifying the water environmental impacts and calculating the value of the impacts ......................................................................................49 3.4 Findings and Conclusions of the Case...............................................64 3.4.1 Supports for Economic Evaluation ................................................64 4 CASE STUDY REPORT FOR LAND........................................................66 4.1 Background of the Cases...................................................................66 4.1.1 Selection of the case studies..........................................................66 4.1.2 Description of the cases.................................................................67 4.1.3 Current status of the environmental Impacts of the cases.............69 4.1.4 Basis of existing guidelines, regulations ........................................75 4.2 Selection of economic evaluation approach .......................................76 4.2.1 Basic procedures .............................................................................76 4.2.2 Specific procedures ........................................................................76 4.2.3 Selection of the evaluation approaches ..........................................78 4.2.4 Quantification analysis ..................................................................80 4.2.5 The establishment of the assessment approach based on the receptors for the case studies........................................................................89 4.3 Economic assessment of case studies................................................92 4.3.1 Identification on the Stressors and Definition on the Impacts...... 92 Determine of the stressors............................................................................93 definition of receptors ..................................................................................95 4.3.2 Economic assessment for sewage irrigation ..................................95 4.3.3 Chongqing Highway Plan Case Study......................................... 101 4.4 Findings of the case studies and conclusion ...................................105 4.4.1 Irrigation ...................................................................................... 105 4.4.2 Highway case............................................................................... 106 5 DOSE RESPONSE FUNCTIONS FOR AIR...........................................109 6 DOSE RESPONSE FUNCTIONS FOR WATER....................................153 1 Introduction This Part II of the report contains full versions of the case studies for air, water and land (Chapters 2-4), which were only summarised in Part I. In addition, during the work the research team has collected a large amount of literature and information on dose response relationships for air and water pollution relevant to China. This information is included as Chapters 5 and 6. The report has not been fully edited in English, and parts of the material (especially the dose response chapters) are only partly translated from Chinese. Those of the readers that have a special interest in these chapters are either referred to the full Chinese versions or (for English speakers) to the authors for clarifications (Wu Jian for air and Song Guojun for water, both at the School of Environment & Natural Resources, Renmin University, and Zhang Shiqiu, Peking University for land). 1 2 Case study report for air 2.1 Background 2.1.1 Criteria for Case Selection The case is chosen based on the following principles: > The EIA should be carried out by EIA agency with Class-A certification, to ensure the reliability of EIA report; > The case project should belong to major industry in national economy, which will enhance the importance of economic evaluation in project permission decision; > The case project should be located in a city, where basic statistics is available; > The case project should emit typical pollutants; Based on the above principles, we chose the second phase of the Datong No.2 power plant project as the case study: > It is electric power industry, which is a important industry for national economy; > It emits major pollutants such as SO2, Nox, PM10, and TSP; > The EIA was carried out by an EIA agency with Class-A certification and sound working experience in this area, which has a good database; > Datong is a medium-size city, basic statistical data of population, society, and economy available; > Datong is a typical city because it is severely polluted; > Several other research projects is going on in Datong, e.g. AIR POLLUTION PREVENTION MASTER PLAN, so that these parallel can share more data. 2 All health and economy data used in this case are of 2001. The case doesn ’t consider the impact of the power plant project on water, noise and ecosystem, 2.1.2 Project Description General Datong No.2 power plant was built at the end of 1970s. It is affiliated to SP power development Co., Ltd, and is one of the most important power plants in northern China. According to the feasibility research report of the second-phase project, the preparation period begins in June 1, 2002 and the construction period is from April 2003 to January 2007. The power plant has already had six sets facility of 200MW capacity, another two sets facility of 600MW air-cooling capacity is planed to be constructed in the second phase. When the second phase is compeleted, the new facility will work 5500 hours and generate 660%104 MWh of electricity every year. Table 2.1 Emissions of Datong No.2 power plant (ton/annul) Pollutants current Second Total Datong emission phase city project SO2 30588 14278 46442 116195 Dust 4176 1331 5159 122519 NOX 12441 Fluoride 297 Note: (1) The data of Datong city emission are from 2000. (P53,91) (2) “----- ” means “not available ”. Geographical condition Datong No. 2 power plant is located in the southern suburb area of Datong city, in the