Cost Assessment of Environmental Degradation ...

1 Kosovo Country Environmental Analysis cost Assessment of Environmental Degradation , Institutional Review, and Public Environmental Expenditure Review 1. Table of contents 6. Executive summary .. 8. 1 Introduction .. 15. Background .. 15. Kosovo Environmental Strategy and National Environmental Action Plan .. 15. cost Assessment of Environmental Degradation .. 16. 2 Air pollution and lead contamination .. 19. Health impacts of air pollution .. 21. Step 1: Monitoring data on air pollutants .. 22. Step 2: Determining the population exposed .. 22. Step 3: Assessing health impacts from exposure using epidemiological data .. 22. Step 4: Physical health 24. Step 5: Monetary effects of health impacts.

2 25. Lead contamination .. 26. Climate change .. 28. Estimates of mitigation costs .. 29. Power .. 29. Other industries .. 30. 30. Domestic fuel consumption .. 31. Lead .. 32. Energy efficiency measures .. 32. 3 Water .. 33. Water quality monitoring and water pollution .. 34. Environmental impacts from agricultural water pollution .. 35. Health impacts from contamination of water sources .. 36. Diarrhea: mortality (under-five children) .. 36. Diarrhea: morbidity (under-five children) .. 37. Diarrhea: morbidity (people ages 5 and older).. 37. cost of diarrhea .. 38. 2. Heavy metal pollution .. 38. Estimates of mitigation costs .. 39. Sanitation .. 39. Industrial wastewater 41. Policy recommendation applicable to water sector.

3 41. 4 Solid waste .. 42. Municipal solid waste and other waste in landfills .. 42. Collection rates .. 43. Emissions to air from regulated landfills, illegal dumps, and backyard burning .. 44. Leachate from 45. Impact of waste dumping on property values .. 46. Coal ash .. 47. Estimates of mitigation costs .. 48. Domestic waste management .. 48. Industrial waste management .. 48. Policy recommendation applicable to waste sector .. 49. 5 Forest and land resources .. 50. Potential economic importance .. 50. Forest Degradation and deforestation .. 51. Economic losses of forest Degradation .. 51. Other land 56. 56. 6 Mining, manufacturing, and energy in Kosovo .. 58. 7 Institutional review.

4 70. Environmental legislation .. 70. Sectoral plans and strategies .. 70. Institutional capacity .. 71. Environmental management tools .. 72. 72. 72. Monitoring and inspection .. 74. Further steps .. 74. 3. 8 Public Environmental expenditure review .. 76. Appendix 1 Health costing approaches and benefit transfer .. 84. Appendix 2 Detailed institutional review .. 87. Appendix 3 Ministry of Environment and Spatial Planning's Environmental budget, 104. Appendix 4 Municipal survey .. 105. Bibliography .. 112. Figures Figure Distribution of broadleaved forest species .. 50. Figure Environmental spending, central and municipal .. 76. Figure Expenditures by sector of MESP (left) and WWRA (right), ( thousand).

5 77. Figure MESP's Environmental capital expenditures by domain ( 000) .. 78. Figure Municipal capital expenditures by domain, budgeted (left) and actual (right), 2006 10 ( . thousand) .. 79. Figure Environmental revenues of WWRA and MESP ( thousand) .. 82. Tables Table 1 Estimated annual cost of Environmental Degradation in Kosovo, 2010 .. 10. Table Estimates of air emissions for key pollutants for 2010 (mg per Nm3 flue gas) .. 19. Table Monthly average concentration values for PM10 and , central and suburban Pristina, 2010 and 2011 ( g/m3) .. 20. Table EC limit values, Directive 2008/50/EC .. 21. Table Urban air pollution exposure-response coefficients for morbidity health effects.

6 23. Table Estimated health impacts of air pollution in Kosovo, 24. Table Unit costs of medical treatment and time losses due to illness .. 26. Table Costs of health impacts of air pollution, 2010 ( ) .. 26. Table Annual cost of IQ loss in children from exposure to lead, 2010 .. 28. Table Household drinking water sources, 2009 (%) .. 33. Table Surface water quality of the main river basins in Kosovo .. 35. Table Costs of diarrheal disease and heavy metal water pollution, 2010 ( ) .. 39. 4. Table Estimated investment and annual operating costs, wastewater collection/sewerage and treatment ( million) .. 41. Table Waste collection coverage, 2008 .. 43. Table Annual municipal solid waste and other comparable waste by disposal route (tons).

7 44. Table Estimated emissions to air from municipal waste, 2010 (tons, unless otherwise indicated).. 44. Table Annual costs of air pollution linked to waste management ( ) .. 45. Table Estimated annual discharges from leachate of landfills and economic damage 46. Table Costs of inadequate solid waste collection and disposal, 2010 ( ) .. 47. Table Economic taxonomy for Environmental resource valuation .. 52. Table Value of forests, 2010 ( per ha) .. 55. Table Annual costs of forest Degradation .. 56. Table Comparison of staff and number of EIAs, selected EU 73. Table Environmental expenditure (% of GDP) .. 77. Table Budget execution rates for MESP and WWRA, 2005 09 (%) .. 78. Table Environment-related expenditures by other budget users, 2010 ( thousand).

8 80. Table Donor-financed environment activities and commitments, 2009 ( thousand) .. 80. Table MESP's Medium-term Expenditure Framework 2011 13 ( thousand) .. 81. Table Municipalities, inhabitants and area (km2) .. 106. Table 107. 5. Acknowledgments This report was prepared by a World Bank team that included Katelijn van den Berg, senior Environmental economist; Frank van Woerden, senior Environmental engineer; Helena Naber, economist; Agim Demukaj, research analyst; Borko Handjiski, country economist Kosovo;. Krenar Bujupi, operations officer; Nejme Kotere, team assistant; Bjorn Larsen, consultant for Environmental economics; Pascal de Giudici, consultant for Environmental health; Jochem Jantzen, from the Institute for Applied Environmental Economics; Ergin Hajredini, forestry consultant; Mirjeta Maxhuni-Deda, Environmental consultant; and Mrika Maliqi, health data consultant.

9 The report was edited by Communications Development Incorporated. The World Bank team would like to thank, for its cooperation, the Ministry of Environment and Spatial Planning, particularly Mr. Muhamet Malsiu, Director of the Environment Department. The team would also like to express its appreciation to other persons and institutions in Kosovo who contributed information, including Mr. Ilir Morina from the Kosovo Environmental Protection Agency; Mr. Syl Tahirsylaj from the Hydro-meteorological Institute; Dr. Naser Ramadani and Drita Zogaj from the Institute of Public Health; Behxhet Shala and Trandelina Cakaj from the Cleanup and Land Reclamation Project-Project Implementation Unit in KEK.

10 Gerry McWeeney from WHO; Ms. Lisa Mattsson from UNDP; Ms. Luljeta eku, Urban Director for Planning and Environment Protection from Pristina municipality; Mr. Fatos Mulla from Sida;. Mr. Hysen Abazi from the Department of Forestry; Mr. Bedri Halimi from the Environmental Inspectorate; Mr. Naser Bajraktari from the Water Department; Mr. Ahmet Zejnullahu from the Kosovo Forestry Agency; Mr. Azem Rexha from ICMM; and Mr. Lulzim Korenica, Director of the Environment Department, former Ministry of Energy and Mines. The World Bank also gratefully acknowledges financial support from the Trust Fund for Country Environmental Analysis. 6. Abbreviations ALRI Acute lower respiratory infection BLL Blood lead level Cd Cadmium CH4 Methane CO Carbon monoxide CO2 Carbon dioxide Cu Copper DALY Disability-adjusted life year EC European Commission EIA Environmental impact Assessment EMMP Enviornmental Mitigation and Monitoring Plan EU European Union FAO Food and Agriculture Organization of the United Nations FMCs Family Medicine Centers FRIDOM Functional Review and Institutional Design of Ministries GDP Gross domestic product ICMM Independent Commission of Mines and Minerals KEK Kosovo Energy Corporation KEPA Kosovo Environmental Protection Agency KES Kosovo Environmental Strategy KHMI Kosovo Hydro-meteorological