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THIRD INTERNATIONAL CONFERENCE ON
ENVIRONMENTAL ECONOMICS
AND INVESTMENT ASSESSMENT
K. Aravossis
National Technical University of Athens, Greece
C.A. Brebbia
Wessex Institute of Technology, UK
Organised by
Wessex Institute of Technology, UK
The National Technical University of Athens, Greece
Sponsored by
WIT Transactions on Ecology and the Environment
INTERNATIONAL SCIENTIFIC ADVISORY COMMITTEE
CONFERENCE CHAIRMEN
Environmental Economics III
D. Damigos
R. Greiner
K.-J. Hsu
S. Idowu
A.R. Perks
R. Sjoblom
J. Vleugel
WIT Transactions
Editorial Board
Transactions Editor
Carlos Brebbia
Wessex Institute of Technology
Ashurst Lodge, Ashurst
Southampton SO40 7AA, UK
Email: carlos@wessex.ac.uk
B Abersek University of Maribor, Slovenia
Y N Abousleiman University of Oklahoma,
USA
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E Alarcon Universidad Politecnica de Madrid,
Spain
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A M Amer Cairo University, Egypt
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Greece
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H Antes Technische Universitat Braunschweig,
Germany
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Catalunya, Spain
J G Bartzis Institute of Nuclear Technology,
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Thrace, Greece
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Belgium
C D Bertram The University of New South
Wales, Australia
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S K Bhattacharyya Indian Institute of
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de Belfort-Montbeliard, France
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Laboratory, USA
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of Athens, Greece
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Location Analysis, Sweden
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G Manara University of Pisa, Italy
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Ü Mander University of Tartu, Estonia
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“Federico II”, Italy
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Portugal
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P H Oosthuizen Queens University, Canada
E L Ortiz Imperial College London, UK
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A S Papageorgiou Rensselaer Polytechnic
Institute, USA
J Park Seoul National University, Korea
G Passerini Universita delle Marche, Italy
B C Patten University of Georgia, USA
G Pelosi University of Florence, Italy
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Thessaloniki, Greece
W Perrie Bedford Institute of Oceanography,
Canada
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H Pina Instituto Superior Tecnico, Portugal
M F Platzer Naval Postgraduate School, USA
D Poljak University of Split, Croatia
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Laboratory, UK
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Indonesia
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Russia
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J Rao Case Western Reserve University, USA
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at Buffalo, USA
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Champaign, USA
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Environmental Health, Spain
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Austria
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Catalunya, Spain
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Hamburg, Germany
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Desertificacion, Spain
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Schaltungen, Germany
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Spain
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Petroleo, Mexico
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Germany
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Newfoundland, Canada
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USA
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Germany
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of Athens, Greece
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Russia
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Poland
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J Szmyd University of Mining and Metallurgy,
Poland
S T Tadano Hokkaido University, Japan
H Takemiya Okayama University, Japan
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M Tanaka Shinshu University, Japan
E Taniguchi Kyoto University, Japan
S Tanimura Aichi University of Technology,
Japan
J L Tassoulas University of Texas at Austin,
USA
M A P Taylor University of South Australia,
Australia
A Terranova Politecnico di Milano, Italy
E Tiezzi University of Siena, Italy
A G Tijhuis Technische Universiteit
Eindhoven, Netherlands
T Tirabassi Institute FISBAT-CNR, Italy
S Tkachenko Otto-von-Guericke-University,
Germany
N Tosaka Nihon University, Japan
T Tran-Cong University of Southern
Queensland, Australia
R Tremblay Ecole Polytechnique, Canada
I Tsukrov University of New Hampshire, USA
R Turra CINECA Interuniversity Computing
Centre, Italy
S G Tushinski Moscow State University,
Russia
J-L Uso Universitat Jaume I, Spain
E Van den Bulck Katholieke Universiteit
Leuven, Belgium
D Van den Poel Ghent University, Belgium
R van der Heijden Radboud University,
Netherlands
R van Duin Delft University of Technology,
Netherlands
P Vas University of Aberdeen, UK
W S Venturini University of Sao Paulo, Brazil
R Verhoeven Ghent University, Belgium
A Viguri Universitat Jaume I, Spain
Y Villacampa Esteve Universidad de
Alicante, Spain
F F V Vincent University of Bath, UK
S Walker Imperial College, UK
G Walters University of Exeter, UK
B Weiss University of Vienna, Austria
H Westphal University of Magdeburg,
Germany
J R Whiteman Brunel University, UK
Z-Y Yan Peking University, China
S Yanniotis Agricultural University of Athens,
Greece
A Yeh University of Hong Kong, China
J Yoon Old Dominion University, USA
K Yoshizato Hiroshima University, Japan
T X Yu Hong Kong University of Science &
Technology, Hong Kong
M Zador Technical University of Budapest,
Hungary
K Zakrzewski Politechnika Lodzka, Poland
M Zamir University of Western Ontario,
Canada
R Zarnic University of Ljubljana, Slovenia
G Zharkova Institute of Theoretical and
Applied Mechanics, Russia
N Zhong Maebashi Institute of Technology,
Japan
H G Zimmermann Siemens AG, Germany
Editors
K. Aravossis
National Technical University of Athens, Greece
&
C.A. Brebbia
Wessex Institute of Technology, UK
Environmental Economics
and Investment Assessment III
Published by
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Ashurst Lodge, Ashurst, Southampton, SO40 7AA, UK
Tel: 44 (0) 238 029 3223; Fax: 44 (0) 238 029 2853
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British Library Cataloguing-in-Publication Data
A Catalogue record for this book is available
from the British Library
ISBN: 978-1-84564-436-9
ISSN: 1746-448X (print)
ISSN: 1743-3541 (online)
The texts of the papers in this volume were set
individually by the authors or under their supervision.
Only minor corrections to the text may have been carried
out by the publisher.
No responsibility is assumed by the Publisher, the Editors and Authors for any injury and/or
damage to persons or property as a matter of products liability, negligence or otherwise, or
from any use or operation of any methods, products, instructions or ideas contained in the
material herein. The Publisher does not necessarily endorse the ideas held, or views expressed
by the Editors or Authors of the material contained in its publications.
© WIT Press 2010
Printed in Great Britain by MPG Books Group, Bodmin and King’s Lynn.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system,
or transmitted in any form or by any means, electronic, mechanical, photocopying, recording,
or otherwise, without the prior written permission of the Publisher.
K. Aravossis
National Technical University of Athens, Greece
C.A. Brebbia
Wessex Institute of Technology, UK
Preface
This book contains the edited versions of papers presented at the Third International
Conference on Environmental Economics and Investment Assessment, held in
Cyprus, in 2010. The conference was organised by the Wessex Institute of
Technology in collaboration with the National Technical University of Athens.
The current emphasis on sustainable development is a consequence of the general
awareness of the need to solve numerous environmental problems resulting from
our modern society. This has resulted in the need to assess the impact of economic
investments on the environment. The book addresses the topic of Investment
Assessment and Environmental Economics in an integrated way; in accordance
with the principles of sustainability considering the social and environmental impacts
of new investments.
The usual assumption is that it is difficult to achieve the growth of enterprise in an
environmentally friendly manner. This paradigm usually associated with developed
countries is now affecting all other regions of the globe. The main question is if the
development of enterprise is compatible with environmental protection.
The roots of financial development are financial growth, which in conventional
terms requires an increase in production and the use of more resources. Overuse of
those resources can result in ecological destruction and a larger release of waste
and pollution into the environment.
The book addresses these problems of primary importance to Society, discussing
and proposing a more constructive and progressive approach to ensure sustainability.
Methodologies to address these important problems are presented.
The contributions comprise the following broad subject headings: Environmental
Policies, Planning and Assessment; Cost Benefits Analysis; Decision Support
Systems; Natural Resources Management; Social Issues and Environmental Policies.
This book will be of interest to government officials, politicians, environmental
experts, economists, research scientists in the area of environmental economics,
operations researchers, senior management in all kinds of companies and regional
government.
The Editors are grateful to all the authors for their excellent contributions and in
particular to the members of the International Scientific Advisory committee as
well as all reviewers for their reviews of the abstracts and the papers and their help
on ensuring the high quality of this book.
The Editors
Cyprus, 2010
Contents
Section 1: Environmental policies, planning and assessment
The impact of the emission trading system on companies’ profitability:
the case of Greece
K. Aravossis & G. Garoufi .................................................................................. 3
Infrastructure and ecology: ‘limited’ costs may hide
substantial impacts
E. J. Bos & J. M. Vleugel................................................................................... 17
Implementation of the polluter pays principle – example of planning
for decommissioning
S. Lindskog & R. Sjöblom.................................................................................. 27
Estimating the economic benefits of redeveloping the former
Athens International Airport
D. Damigos & E. Laliotis .................................................................................. 39
Assessment of the impact of local energy policies in reducing
greenhouse gas emissions
A. Arteconi, C. M. Bartolini, C. Brandoni & F. Polonara................................. 51
The contradiction between modernising irrigation and water buyback
L. Crase & S. O’Keefe ....................................................................................... 63
The cost of food safety due to animal by-product regulation in Spain:
who pays for it?
A. Esturo, N. González, P. Greño, M. Martinez-Granado
& M. Saez de Buruaga....................................................................................... 71
Section 2: Cost benefits analysis
Cost-benefit risk of renewable energy
K.-J. Hsu............................................................................................................ 85
New benefit-cost methodology for evaluating renewable and
energy efficiency programs of the US Department of Energy
R. T. Ruegg & G. B. Jordan............................................................................... 95
Assessing the efficiency of municipal expenditures regarding
environmental protection
J. Soukopova & E. Bakos................................................................................. 107
Car scrappage incentives policies:
a life cycle study on GHG emissions
M. Lelli, G. Pede, M. P. Valentini & P. Masoni.............................................. 121
Section 3: Decision support systems
Towards a decision support tool: sensitivity mapping of the
French Mediterranean coastal environment
(a case study of fishery and lodging)
C. Scheurle, H. Thébault & C. Duffa............................................................... 135
Funding evaluation model for the implementation of wastewater
treatment projects through public private partnerships
A. Ch. Karmperis, A. Sotirchos, K. Aravossis & I. Tatsiopoulos..................... 147
Section 4: Natural resources management
Payments for environmental services (PES): contribution to
Indigenous livelihoods
R. Greiner........................................................................................................ 163
Enhancing natural resource management through payment for
ecosystem services
S. Vemuri & J. Gorman.................................................................................... 175
Investment in sustainable buildings: the role of green building
assessment systems in real estate valuation
S. Geissler & M. Groß..................................................................................... 187
Hydropower and sustainable development: a case study of Lao PDR
S. Jusi............................................................................................................... 199
Section 5: Social issues and environmental policies
Sustainability actions in Mediterranean countries through
cooperation partnerships: the case of the project PAMLED
T. Daddi, F. Farro, S. Vaglio, G. Bartoli & F. Iraldo..................................... 213
Relevance of environmental and public safety issues predicts public
importance of economic vitality
R. Thomas, S. Conway, P. Washeba, R. Cameron & R. Skidmore................... 225
Values held by young stakeholders on financial planning
regarding liabilities for nuclear decommissioning
B. Labor & S. Lindskog ................................................................................... 235
Evaluating the complementarity of the educational function
in agriculture
Y. Ohe .............................................................................................................. 247
Green economies and green jobs: implications for South Africa
G. Nhamo......................................................................................................... 257
Author Index.................................................................................................. 269
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Section 1
Environmental policies,
planning and assessment
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The impact of the emission trading system on
companies’ profitability: the case of Greece
K. Aravossis & G. Garoufi
Sector of Industrial Management & Operational Research,
School of Mechanical Engineering,
National Technical University of Athens, Greece
Abstract
The European Union is in many respects a key player in the global efforts to curb
emissions of greenhouse gases (GHGs). Maintaining the role of the frontrunner,
the European Parliament and the Council established on 13 October 2003 a
scheme of GHG emission allowance trading within the Community, the so-called
Emission Trading System (ETS).
Greece, as a Member State of the European Union, takes action in the field of
the reduction of carbon dioxide (CO2) emissions. According to the Directive
2003/87/EC, the Greek government includes in National Allocation Plans
(NAPs) the biggest polluters from each one of the energy demand sectors. More
specifically, the Directive covers electricity industries, other industrial
combustion installations, refineries, metal ore roasting and cindering
installations, pig iron and steel production installations, cement clinker
production installations, lime production installations, glass manufacture
installations, ceramic production installations and pulp and paper production
installations.
The objective of this paper is to examine the impact of the Emission Trading
System on the profitability of Greek companies included in the NAPs. On this
basis, the quantities of carbon dioxide that every participant has emitted during
each year of the period 2005-2008 are compared respectively to the quantity of
emission allowances issued. The balance indicates whether the tradable
allowances are responsible for the participants’ financial results (of their balance
sheets).
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Environmental Economics and Investment Assessment III 3
doi:10.2495/EEIA100011
Financial indicators are used to present the impact of the acquisition or sale of
allowances on the total turnover and the profit before tax of the participating
companies.
An additional goal of this paper is to identify the causes that resulted in a
surplus or shortage of allowances, taking into consideration financial, as well as
environmental, parameters. Consequently, some useful conclusions are drawn
concerning the management of allowances that are granted for free to the
participating companies.
Keywords: greenhouse gases, CO2 emissions, emission trading system,
allowances, companies’ profitability.
1 Introduction
The United Nations Framework Convention on Climate Change (UNFCCC) and
the Integrated Pollution Prevention and Control (IPPC) Directive were the
predecessors of the Kyoto Protocol, which sets targets, timetables and legally
binding emissions, for Annex I countries, concerning carbon dioxide (CO2), and
other greenhouse gases. The foundation stone and the legal bedrock of the
flexible market mechanisms were laid by the UNFCCC, but the Kyoto Protocol
established them, in order to coordinate the efforts in the field of cost-effective
environmental protection. Directive 2003/87/EC of the European Parliament and
the Council established a scheme of greenhouse gas emission allowance trading
within the community, the so-called Emission Trading System (ETS) [1].
In Greece, the activities covered by the provisions of Directive 2003/87/EC
differ significantly in terms of the share of their emissions from combustions and
emissions from processes. Considering this, the allocation of emission
allowances is carried out in two stages, first at activity level and then at
installation level. The activities under examination are the ones referred in
Annex I of the Directive, namely energy activities and other combustion
installations, mineral oil refineries, production and processing of ferrous metals,
production of cement and lime, manufacture of glass and ceramic products and
production of paper and cardboard [2].
2 The Greek national allocation plans
The first Greek NAP, concerning the three-year period 2005-2007, included 141
installations and allocated them approximately 223,3 Mtn CO2 [3], while the
second Greek NAP, concerning the first period of commitment under the
Protocol, 2008-2012, includes 140 installations and allocates them
approximately 341,5 Mtn CO2 [4]. The installations that finally submitted
verified emission reports for the first period outnumbered those initially included
in the NAP. On the contrary, the installations that submitted annual verified
emission reports for 2008, the first year of the five-year period, were noticeably
less than those which were initially included in the second NAP. This reduction
depends to a great extent on the financial crisis which led to malfunction or even
closure of a considerable number of other combustion installations.
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3 The impact of the ETS on Greek companies’ profitability
3.1 The trends of CO2 emission allowance prices
Trading of carbon dioxide emissions takes place in marketplaces since 2005.
During the first year of operation of the multi-country, multi-sector GHG
Emission Trading System, EUAs (EU Allowance Unit of one tonne of CO2)
were priced on the average at 21.37 €/tn CO2 eq. [5], after many fluctuations, by
reason of immaturity of the market.
In 2006, the market was, once more, characterized by instability and EUAs
were priced at 18.18 €/tn CO2 eq. on the average. Prices decreased, due to the
fact that EUAs for trading period 2008-2012 stimulated a lot of interest.
In 2007, EUA prices plummeted. The price of a tonne of carbon dioxide in
Europe often fell below 1 €/tn CO2 eq. [5]. Demand for permits to emit CO2
dropped off, since traders had lost all interest of first trading period’s EUAs and
the price was 1.44 €/ton CO2 eq. on the average.
Prices were kept stable during 2008. In grace of traders’ raised interest, EUAs
were priced at 22.66 €/tn CO2 eq. [5] on the average.
3.2 The impact of the ETS through diagrams and financial indicators
Undoubtedly, the ETS has influenced Greek companies’ profitability. The
average emission allowance price per year, as well as data concerning the
companies’ CO2 emissions [6] were required in order to examine thoroughly its
impact.
The following diagrams present the income from the surplus CO2 emission
allowances and the expenses on the acquisition of extra ones, of representative
companies from each sector.
Moreover, two financial indicators were used so as to examine the financial
situation of the above companies after the installation of the ETS. The impact of
the acquisition or sale of CO2 emission allowances on the total turnover and the
profit before tax of the participating companies was calculated, using financial
results from the companies’ balance sheets.
3.2.1 The impact of the ETS on the total turnover of the participating
sectors’ companies
The first diagram depicts the comparison between the average of indicators
presenting the impact of the acquisition or sale of emission allowances on the
total turnover of the companies during 2005-2007 and 2008. More specifically,
the first bar concerns 2008, while the second one concerns the three-year period
2005-2007.
By studying the diagram, it is obvious that the ETS doesn’t exert much
influence on the paper and cement clinker production sectors.
Nonetheless, the lime and ceramic production installations had either shortage
or small surplus of allowances during the first tradable period, whereas big part
of their income proceeds from the sale of the surplus CO2 emission allowances in
2008.
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Environmental Economics and Investment Assessment III 5
Figure 1: Income from the sale of CO2 emission allowances and expenses on
their acquisition during 2005.
On the contrary, the steel production installations have surplus of allowances
during both of the periods examined. More precisely, the biggest share of income
due to the sale of CO2 emission allowances arises during 2005-2007.
Finally, the Greek Public Power Corporation (PPC) seems to have faced an
extended shortage of allowances in 2008.
3.2.2 The impact of the ETS on the profit before tax of the participating
sectors’ companies
The second diagram pictures the comparison between the average of indicators
presenting the impact of the acquisition or sale of emission allowances on the
profit before tax of the companies during 2005-2007 and 2008. Likewise, the
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6 Environmental Economics and Investment Assessment III
Figure 2: Income from the sale of CO2 emission allowances and expenses on
their acquisition during 2006.
first bar concerns 2008, while the second one concerns the three-year period
2005-2007.
Undoubtedly, the ETS has aided numerous companies from the lime and
ceramic production sector to improve their economic situation, especially since
the beginning of the financial crisis.
Regarding the steel production installations, the diagram gives the impression
that the ETS has helped them raise their profits.
Oppositely to the above, the ETS unquestionably presides over 45% of the
heavy loss the PPC announced in 2008.
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Figure 3: Income from the sale of CO2 emission allowances and expenses on
their acquisition during 2007.
4 Analysis of the impact of the ETS on Greek companies
4.1 Power generation sector
As far as the Greek Public Power Corporation (PPC) is concerned, the ETS
seems to incur much of the damage in the company’s profitability. Not only has
the PPC shouldered the responsibility to cover the energy demands of the
majority of Greek capitals, but also operates technologically old electricity
generation units, using lignite [7]. The above factors explain the company’s
shortage of emission allowances, which is growing in 2008, since it’s the first
year of a period that demands reduction of CO2 emissions.
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8 Environmental Economics and Investment Assessment III
Figure 4: Income from the sale of CO2 emission allowances and expenses on
their acquisition during 2008.
Electricity market liberalization led to the entrance of three new units. Their
parent companies were aware of the establishment of the ETS in advance,
therefore, they had provided their subsidiary companies with combined cycle
natural-gas units [8]. Hence, carbon dioxide emitted by them didn’t outnumber
the quantity of emission allowances issued.
4.2 Other combustion installations sector
The sector of other combustion installations, generally, presents limited CO2
emissions during 2008, compared respectively to those of the three-year period
2005-2007 [6].
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Figure 5: Comparison between the average of indicators presenting the
impact of the acquisition or sale of emission allowances on
companies’ total turnover during 2005-2007 and 2008.
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Figure 6: Comparison between the average of indicators presenting the
impact of the acquisition or sale of emission allowances on
companies’ profit before tax during 2005-2007 and 2008.
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Environmental Economics and Investment Assessment III 11
The fact that the installations included in the second NAP are less than those
included in the first one, brought about considerable emission reductions.
Moreover, three installations malfunction and two others have already closed.
Therefore, their quantity of emission allowances issued is not used. Furthermore,
the biggest installation of this sector has stopped electricity generation activities
that demanded non environmental friendly fuels. Instead, combined heat and
power, using natural gas, was integrated in the company’s activities [9].
4.3 Refineries
The first refinery has progressively reduced its shortage of emission allowances
during 2005-2007, as a result of implementation of Best Available Techniques
(BAT) [10]. These actions contributed directly in surplus of CO2 emission
allowances in 2008.
Notwithstanding the above, the total allowances of the sector were increased
comparatively to the quantity of emission allowances issued for the three-year
period, due to an expansion of the installations of the sector’s second refinery.
The expansion took place in 2006, but no additional allowances were
allocated to the company. Thus, the quantity of CO2 emitted exceeded the
quantity of emission allowances issued, which led to a big shortage of
allowances. Therefore, a respectable amount of money was spent by the
company, in order to cover its shortage.
The assigned amount of emission allowances for the second refinery during
the first period of commitment under the Protocol (2008-2012), was calculated
on the basis of its historical emissions. Thereupon, it was increased in
comparison to the amount of emission allowances of the previous period. Even
though the shortage was diminished, the company still spent much money to tide
over the shortage of CO2 emission allowances, as a consequence of high EUA
prices during 2008 [5].
4.4 Steel production sector
The steel production installations have surplus of emission allowances
throughout the period examined. The participating companies of this sector were
aware of the establishment of the ETS. Taking into consideration the above, the
companies had enough time to substitute HFO with natural gas and therefore
reduce their carbon dioxide emissions [11].
Besides, the historical emissions, on which the assigned amount of emission
allowances is based, were calculated while the installations were using HFO, a
fuel that causes extremely high emissions of CO2. Wherefore, the fact that
allocated emission allowances were far more than the allowances the companies
really necessitated, had an enormously positive impact on their profitability.
As far as the second NAP is concerned, substitution of HFO with natural gas
was taken under consideration and as a result, allocated emission allowances
were significantly less than the ones of the previous period.
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4.5 Construction sector
The construction sector, on the whole, presents reduced CO2 emissions compared
to those of the three-year period 2005-2007. The financial crisis led the sector to
a slowdown, and as a result the demand diminished [12]. In consequence of the
limited demand, there was a proportionally limited production which restrained
CO2 emissions in low levels.
Additionally, the staple of the installations included in the construction sector
(cement clinker production installations, lime production installations, ceramic
production installations) is limestone. Thereupon, all the relative installations
have the ability to use limestone of low percentage of CO2 content and
consequently reduce their emissions.
4.5.1 Cement clinker production sector
Regarding the cement clinker production sector, especially during the three-year
period 2005-2007, there is no remarkable variance between the quantity of
emission allowances issued and the quantity of CO2 emitted. More specifically,
the quantities of carbon dioxide emitted that are presented in the submitted
verified emission reports, are slightly less than the allocated emission
allowances, due to the following factors.
First and foremost, the cement clinker production sector is characterized by
stability. It is consisted of a small number of companies and as a result,
demanded quantities of cement, which indicate the produced quantities of
cement and consequently the quantity of CO2 emitted, are approximately stable
from year to year. On account of that, historical emissions, on which calculations
of the allocated emission allowances were based, suggest accurately the sector’s
demand for emission allowances.
On the other hand, participating companies of this sector, were beforehand
aware of the establishment of the ETS and substituted fossil fuels with natural
gas, which releases much less quantities of CO2 [11].
Particularly in 2008, Greek cement clinker production companies confirmed
reduction of carbon dioxide emissions up to 5%. This reduction emanated from
the slowdown of the construction sector, due to the recent financial crisis. In
2008, the three biggest cement associations acted according to their estimation
that downturn would continue, and sold big amounts of allowances through
international marketplaces, in order to support their economic situation [6].
4.5.2 Lime and ceramic production sectors
Remarkable similarities can be identified between the lime and ceramic
production sectors.
To begin with, none of the relative installations has renewed its equipment, or
substituted fossil fuels with natural gas, since the establishment of the ETS.
What is more, during the period 2005-2007, allocated emission allowances
proved to be insufficient to cover the needs of the installations included in the
NAP. Thus, the quantity of CO2 emitted exceeded the quantity of emission
allowances issued, which led to a big shortage. As a consequence, the companies
spent considerable amounts of money so as to tide over the shortage [12].
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Environmental Economics and Investment Assessment III 13
Under these circumstances, the second NAP allocated more emission
allowances to the above companies for the period 2008-2012. However, the extra
allowances that were at the companies’ disposal turned out to be needless, since
their verified emission reports of 2008 present significantly reduced emissions of
carbon dioxide, owing to two main factors.
First of all, the financial crisis impacted on the construction sector, and by
extension on the lime and cement clinker sectors, leading to their slowdown. As
a result, the emerging CO2 emissions dropped [6].
Additionally, several companies adopted the policy of further reduction of
their production, aiming at the creation of a surplus of allowances. The sale of
the surplus of allowances enabled them to support their economic situation.
4.6 Paper production sector
The paper production installations present slight differences between the quantity
of emission allowances issued and the quantity of CO2 emitted. With regard to
this sector, paper production is based exclusively on recycled paper, and not on
wood pulp (wood pulp is usually bleached using calcium carbonate, in order to
produce white paper product). Hence, CO2 emissions result only from
combustion.
During 2008, the decision several paper production installations made to
replace outdated technology, led to reduction of carbon dioxide emissions [13].
Some of them, having access to natural gas pipelines, have substituted fossil
fuels with natural gas. Others use LPG either exclusively or in the mix of fuels
[11].
5 Conclusions
This paper reported the impact of the Emission Trading System on Greek
companies’ profitability and its influence on their environmental policy.
The ETS, being responsible for the emergence of a big shortage of allowances
and by extension of money, has worsened the economic situation of the Greek
Public Power Corporation. More accurately, it unquestionably presides over the
45% of the heavy loss the PPC announced in 2008. Yet, the company hasn’t
taken sufficient measures to reduce CO2 emissions, and instead operates mainly
lignite stations.
Nevertheless, the other combustion installations and the paper production
installations have remained almost unaffected. The first ones don’t exceed the
quantity of emission allowances due to their malfunction or even closure. The
majority of the second ones have substituted fossil fuels with environmental
friendly fuels and replaced outdated technology.
The sector of refineries was affected by the ETS, due to an expansion of one
of the installations, during the first period examined, without being allocated
additional emission allowances. Even when the second NAP took the expansion
under consideration, CO2 emission allowance prices were so high that loss was
unavoidable.
The fact that the companies from cement clinker and steel production sectors
were beforehand aware of the establishment of the ETS, in combination with the
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14 Environmental Economics and Investment Assessment III
financial crisis, led to limited CO2 emissions. As a result, they took advantage of
the current situation, sold big amounts of allowances and increased their income.
The lime and ceramic production sectors were, indubitably, most aided by the
ETS. CO2 emission allowances became the needed source of income which
helped them improve their economic situation, or even avoid their closure.
Beyond shadow of doubt, the Emission Trading System has underlined the
importance of using Best Available Techniques and substituting fossil fuels with
environmental friendly ones, like natural gas.
To sum up, the Kyoto Protocol, despite its apparent flaws in its current form,
is the first international environmental agreement that sets legally binding GHG
emissions targets and timetables for Annex I countries. If properly designed,
emission trading scheme can effectively reduce their abatement costs while
assisting Annex I countries in achieving their Kyoto obligations and assuring
their economic viability.
References
[1] Directive 2003/87/EC of the European Parliament and of the Council of 13
October 2003 establishing a scheme for greenhouse gas emission
allowance. Trading within the Community and amending Council Directive
96/61/EC.
[2] Sioulas K., Applying Emissions Trading Mechanisms in Greece, CRES, pp.
7, 2006.
[3] Ministry of Environment, Energy and Climate Change, National Allocation
Plan for the period 2005-2007, pp. 19-26, 2004.
[4] Ministry of Environment, Energy and Climate Change, National Allocation
Plan for the period 2008-2012, pp. 6- 9, 2008.
[5] European Climate Exchange, www.ecx.eu
[6] Kourniotis S., Tsouma M., Sellas N., Loukatos A., Gargoulas N. & Koryzi
K., Verified emission reports of 2008 & Energy saving in businesses.
CO2NTROL info, EPEM, 13, pp. 6-14, 2009.
[7] Regulatory Authority for Energy, www.rae.gr
[8] Kourniotis S., Loukatos A., Gargoulas N., Mentzis A., Sitara A. &
Makrinou K., 2nd
Report concerning the establishment of the Emission
Trading System. CO2ntrol info, EPEM, 2, pp. 12-13, 2006.
[9] Ministry of Development, Energy Outlook of Greece, pp. 63-68, 2009
[10] Hellenic Network for Corporate Social Responsibility, www.csrhellas.org
[11] Kourniotis S., Loukatos A., Gargoulas N., Sellas N., Sitara A., Mentzis
A.& Makrinou K., Report of CO2 emission allowances. CO2NTROL info,
EPEM, 6, pp. 10, 2007.
[12] Construction activity as a parameter of economic development and the
consequences of the economic crisis on it (Initiative Opinion); Economic
and Social Council of Greece, Opinions, 225. http://www.oke.gr/
oke_pron_pdf_en.html
[13] National Centre for the Environment and Sustainable Development,
http://www.ekpaa.greekregistry.eu/
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Infrastructure and ecology:
‘limited’ costs may hide substantial impacts
E. J. Bos1
& J. M. Vleugel2
1
LEI Wageningen University and Research Centre, The Netherlands
2
OTB Research Institute, TU Delft, The Netherlands
Abstract
In response to a growing demand for transport and changes in the way people
use space, the nature of road infrastructure networks change: (small) roads are
frequently transformed into highways. Before such expansions are realized, in
many cases a legal obligation exists to carry out a cost-benefit analysis (CBA) in
order to assess whether the expansion scheme creates a net social benefit for
society. A CBA deals with the effects on the surrounding ecosystem, the
environment and human living. This paper focuses on the valuation of the biotic,
a-biotic and socio-economic damage, thereby contributing to the methodology of
CBA as a tool to evaluate infrastructural plans integrally.
Keywords: infrastructure, ecological effects, environmental effects, economic
valuation and CBA.
1 Introduction
Cost-benefit analysis (CBA) has become an important tool to support policy
making on public investments in infrastructure. Here we will focus on assessing
the external effects of infrastructure in economic terms. More specifically, we
will value the ecological and environmental effects of transforming an existing
motorway into a highway.
The set-up of the paper is as follows. Section 2 starts with an introduction into
CBA. Section 3 continues with an assessment of the ecological, environmental
and socio-economic impacts of the highway plan, followed by the economic
valuation of these impacts. Then an alternative plan to reroute the highway will
be discussed briefly. Section 4 follows with an evaluation of the previous
analysis. In section 5 the main conclusions and recommendations can be found.
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Environmental Economics and Investment Assessment III 17
doi:10.2495/EEIA100021
2 Methodology
Cost Benefit Analysis (CBA) is a well-known tool to support policy makers in
making decisions about public investments in infrastructure- and other projects.
In this study, we undertook an extensive review of existing ecological and
environmental studies in order to determine the physical impacts of a highway
on nature and the environment. This provided a set of parameters. We combined
these parameters with data from the plan in order to determine the quantitative
impacts of the plan. The translation of these impacts in monetary terms, better
known as economic valuation, is the last step to determine the social costs and
benefits of the project. It contains uncertain elements, in particular regarding
ecological effects [1]. There is also no straightforward, simple and integrative
method to value ecological, environmental and socio-economic impacts, instead
we combined different valuation methods in the assessment. To some extent this
meant navigating at the edge of present knowledge, hence the indicative nature
of our final results.
3 The plan for the highway and its impacts
3.1 Introduction
Kresna Gorge is a small area (17 km in length) located north of the Bulgarian
town of Kresna in the southeast part of Bulgaria near the Greek border. Located
on the border of the continental and Mediterranean climate zones, the gorge
contains a unique ecosystem with a high biodiversity and rare animals and
plants: a corridor for mammals and birds.
Nearly 5%, including the most valuable habitats, belongs to the protected
Tissata Reserve. The gorge is declared as a CORINE site (Bern Convention) and
will become part of the European Ecological Network Emerald and Natura 2000.
Part of the gorge is also defined as an important area according to Bird Life
Figure 1: Kresna Gorge in Bulgaria [2, 3].
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18 Environmental Economics and Investment Assessment III
International criteria. Bulgarian environmentalists aim to turn the whole Kresna
Gorge into a protected area. It could be linked with FYROM’s nature areas as a
Transborder Nature Park [4].
3.2 The existing motorway
The gorge and Kresna town are divided by the nine meter wide international road
between Sofia and Athens (Figure 2). Traffic on this road kills hundreds of
animals, such as (rare) snakes, polecats, tortoises, bats and otters, during their
daily migration to the Struma River [4, 5].
3.3 The plan for the highway
Since 1997, a plan by the Bulgarian government did exist to replace the existing
2x1 lane motorway by a 2x2 lane (plus emergency lanes) E-79 highway. The
European Union financially supports infrastructure projects of international
importance by its Trans European Network (TEN) policy. The E-79 is part of
Priority Project N° 7 (Igoumenitsa/Patra–Athina–Sofia–Budapest). An
evaluation says [6, p. 18]: “Bulgaria intends to invest a major part of its
Cohesion Fund 2007-2013 on the motorway route Sofia–Kulata (the Struma
motorway). However, serious environmental constraints could lead to delays on
a 56 km section at the "Kresna Gorge''. These ‘constraints’ refer to the highway
dissecting the Kresna Gorge and passing the edges of Kresna town at 30 meters.
3.4 The physical impact of the highway
When in use, the highway will produce a range of ecological, environmental and
economic effects [4], which will be described here. Besides these external costs,
the cost of building the highway is € 1.2 billion [7].
3.4.1 Ecological (biotic) impact
The presence of a road alters hydrological dynamics, disrupts natural processes
and habitats, but may also create new habitat edges. The assessment was
Figure 2: The barrier effect of a road. Source: [8].
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Environmental Economics and Investment Assessment III 19
restricted to fauna. The first impact is the barrier effect. Traffic imposes
dispersal and migration range barriers to most non-flying terrestrial animals and
causes death while crossing the road [8]. The barrier effect is a combination of
disturbance and avoidance effects, physical hindrances and traffic mortality,
together reducing the number of movements across the barrier (Figure 2).
The barrier effect is a non-linear function of [10]:
- traffic intensity: from 6.000-8.342 per 24 hours in the current situation
to 17.200 in case the highway would be built;
- average vehicle speed: from 70 to 90 km/h;
- road width: from 9 to at least 25 m;
- roadside characteristics: more hard elements;
- type of species, behavior, sensitivity to disturbances.
When the traffic intensity would increase if the current road would be
replaced by the highway, the road would become an absolute barrier to cross for
some animals, as Table 1 shows. In that case the animal species cannot cross the
barrier and populations on each side of the road become isolated. When, as a
consequence, habitats on each side of the rode become too small (see Figure 3)
the specie will become extinct in the area.
Many mammals will not be able to pass the road. Birds are also less likely to
fly over the road. We assume an increase of the barrier effect by a few
percentages.
Table 1: Barrier-effect of roads: traffic intensity values where roads become
absolute barriers to cross.
Species Traffic intensity (vehicles/day)
Lizard, viper, reddish vole
Northern vole, squirrel
Marten, badger, roe-deer, fox
Red deer, swine, otter
2.000
3.500
12.000
15.000
Source: [9].
Figure 3: The relation between the number of species and the surface of an
area (y: number of species, x: area in km2
). Source: [9].
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20 Environmental Economics and Investment Assessment III
Disturbance. When the average vehicle speed increases by 10 km/h and the
traffic intensity increases as expected, the area affected increases by 44 m [11]. If
we take the change in bird densities as an indication for the increased disturbance
of the ecosystem, then the disturbed area will increase by 74.8 ha.
Mortality effect. The number of road kills generally increases with traffic
intensity. High mortality will occur among amphibians and mammals, especially
bear and wolf. Next to this insects, birds and bats are also affected [8]. We
expect an increase by a few percentages.
Habitat loss. The net loss of wildlife habitat would be at least 27,2 ha ([25 –
9] x 17 km). If the highway is constructed in the narrow bed of the gorge, most
of the current natural habitats along the Struma River will be destroyed.
Artificial lightning. This effect is not easy to quantify, but we assume the
spatial burden to be limited to the direct surroundings of the highway.
Depending on the number of successful crossings relative to the size of the
population, the barrier effect may affect the populations of species. If the
exchange of individuals is further reduced but not completely inhibited, the
populations may diverge in characteristics such as density, sex ratio, birth and
mortality rate. Also genetic differences may emerge, as the chance for mating
with individuals from the other side of the road barrier is reduced. Fragmentation
may lead to inbreeding witness studies on rodents and amphibians. A barrier
becomes absolute for a species when crossings stop. If isolated areas become too
small to live for a certain species, then it becomes extinct in the region [9].
Table 2: Ecological impacts of the highway.
Effects Variable (# of) /
Barrier effect Unsuccessful crossings ± 5% 
Disturbance effect Ecologically disturbed area 74.8 ha 
Mortality effect Kills per unit of time ± 5% 
Habitat loss Destroyed habitat > 27.2 ha 
Artificial lightning Disorientation, fixation 
While many species will disappear, some may benefit. For instance, road
verges can be beneficial to animals and plants, depending on the type of roads.
Quiet roads with little traffic are expected to be more beneficial than highways.
3.4.2 Environmental (a-biotic) impact
The first effect concerns disruption of natural processes. Quantification of
this effect is difficult, however.
Air contamination. Examination of sensitive organisms demonstrates that
the current road affects the slopes along the Struma River up to 2 km away.
Higher traffic intensities may be balanced by less congestion. We assume a
certain increase in contamination due to the highway.
Adverse effects from construction, maintenance and use of the road. The
size of the affected area is likely to increase.
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Environmental Economics and Investment Assessment III 21
3.4.3 Impact on size and nature of recreation
Several (eco-)activities are under development. A visually less attractive and
noisy landscape will attract less visitors. A relatively comparable case is the
reactivation of the Dutch section of the Iron Rhine railway [12]. From it we
estimate the number of recreational visits to fall by more than 10 per cent.
Table 3: Environmental impacts of the highway.
Effects Variable (# of) /
Disruption of natural processes (ground
water etc.)

Air pollution Mg/ltr air 
Adverse effects from construction,
maintenance, use of the road

Table 4: Recreational impacts of the highway.
Effects Variable (# of) /
Less attractive recreational
environment
Recreational visits Region: ↓10% 1)
Nation:  0
Note: 1) Very indicative. Eco-tourism will be affected, because the Struma river
is a favorite area, as is the large Melo Sand Hill near Kresna town.
Table 5: Socio-economic impact.
Effects Variable (# of) /
Income and wealth Decrease of agricultural
land, accessibility
0/ 1)
Human health Pollution of air, soil, water 
Risk for drivers and
trespassers
 2)
Noise disturbance to
humans
 3)
Notes:
1) 0 if the road is built in the nature area only, else a decrease. Junctions would
improve accessibility, but they are not planned.
2) No secondary road or (level) crossings are planned. Tractors and horse
drawn carts are mainly used by farmers. Accidents with larger animals at
high speed will be more frequent and more dangerous.
3) The road is very close to the town of Kresna. The value of houses will be
reduced.
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22 Environmental Economics and Investment Assessment III
3.4.4 Socio-economic effects
To be mentioned are the following impacts:
Agriculture. We assume that the highway will be built mainly in the nature
area.
Health effects. Exposure to aerosols is accounted for earlier deaths of
thousands of people each year [13].
Risk for drivers. Police records in Europe (excl. Russia) suggest at least 0.5
m. ungulate-vehicle collisions per year, or at least 300 human fatalities, 30.000
injuries, and material damage of more than US$ 1 bn. [8] The gorge inhabits
large mammals like bear, wolf and deer.
Noise disturbance. Long term exposure to noise can induce psychological
stress and eventually lead to physiological disorder.
3.5 Economic evaluation
Ecological and environmental impacts are not revealed by market prices as they
concern nonuse values. We used a set of methods best fitting to the purpose.
Barrier effect. Method: avoidance cost. We assume two ecoducts of 60m
length, 30m width and 5m height with a cost of 2 x 1.7 million [14].
Disturbance effect. Method: avoidance cost. Noise shields cost
approximately € 60.000 for a shield of 3 m high and 150 m long [15].When
applied to the 17 km E-79 the cost would be 2*(17.000/150)* €60.000 = € 13.6 m.
Habitat loss. Method: Restoration cost. € 272.000.
Artificial lightning. Method: avoidance cost. Adapting artificial lightning (by
limiting direction and amount of light, adaptation to traffic intensity, etc.).
Investment cost of approximately € 80,000 per km of road [15]. When applied to
the 17 km E-79 the total costs would be 80.000*17 = € 1.36 m.
Environmental effects. The appropriate method would be CVM. No data
were available, hence we used a pro memorie (PM) as proxy.
Impact on recreation (use values). Methods: Market valuation, travel cost.
Impact on recreational spending will be negligible if we assume substitution on a
national scale. The welfare loss is due to the decreased recreational value of the
sites, hence shift of travel to other sites. No data is available, hence a PM.
Socio-economic effects. We assume a negligible impact on agriculture.
Human health will be affected. Air pollution could best be valued by hedonic
pricing, as no data is available we apply PM. Noise disturbance and risks for
drivers are included in the disturbance of the ecosystem.
Total cost: € 3.4 m. + € 13.6 m. + € 0.272 m. + € 1.36 m. + PM = > € 18.7 m.
3.6 An alternative
An alternative route via the Pirin Mountain could prevent all the negative effects.
Its impact will be much less than the existing road, which will then be converted
into a disclosure route for inhabitants and tourists [5].
EU’s environmental regulators can play a vital role in protecting this valuable
area against strong economic interests [6].
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Environmental Economics and Investment Assessment III 23
Figure 4: Map of the Kresna Gorge with eastern bypass. Source: [4].
4 Evaluation
In this paper we presented the results of a study into the impact of road extension
on a rather unique and irreplaceable nature area. The importance of this paper
lies in the depth of the ecological analysis and valuation on the one hand and the
combination of several valuation methods on the other hand. CBA studies tend to
concentrate on issues like noise, air pollution, use of space and socio-economic
impact. This study went much further. By combining biotic, a-biotic and socio-
economic impacts it was possible to give a relatively complete overview of the
impacts of the highway. This way of analyzing gives clues to interesting areas
for further research, in particular into ecological and environmental impacts of
infrastructure.
The valuation of the external costs of the highway shows a relatively small
value of € 18.7 m. This is due to a number of factors:
- valuation problems, which lead to an incomplete dataset (PM);
- the prime use of the cost avoidance method, which is a valuation from a human
perspective.
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24 Environmental Economics and Investment Assessment III
The impact of the existing road is already considerable. The impact of the
highway is therefore attenuated. A more cost-intensive in depth study should be
undertaken in the gorge in order to remove the PM’s from the cost calculation.
5 Conclusions and recommendations
A few methodological observations can be made. First, infrastructure projects in
nature areas particularly affect nonuse values. Second, avoidance and restoration
costs methods are most useful when valuing adverse ecological effects in
economic terms. These methods are not based on consumer preferences (wtp),
but on observed market prices. These methods can be used to value effects that
have been mitigated elsewhere.
An issue for further research is to focus on effects where avoidance cost based
data are not available. For such effects contingent valuation could be applied in
order to get an indication of the size of these effects in reference to other costs
and benefits. A recommendation for policy making is to include effects on
surrounding nature areas into the CBA for infrastructure. From our study it is
clear that such effects can no longer be omitted from an integral evaluation.
By building infrastructure in nature areas, we threaten the existence of very
unique, complex and irreplaceable ecosystems. Unlike built-up areas, which can
‘bounch back’ after a road is ready, such ecosystems do not recover after the
road is finished. The best advice would therefore be to stay out of such areas
wherever possible. This is what nature protection is meant to do. To improve the
present situation while taking care of the needs of increased (international) traffic
and the economy, this highway should be built elsewhere.
References
[1] Vleugel, J.M., and E.J. Bos, 2008, Ways to deal with the ‘temporary value
of cost benefit analyses, in: K. Aravossis, C.A. Brebbia and N. Gomez
(eds.), Environmental Economics and Investment Assessment II, Wessex
Institute of Technology, Ashurst, UK, pp. 171-180.
[2] Nikolov, S. and S. Spasov, 2005, Frequency, density and numbers of some
breeding birds in the south part of Kresna Gorge (SW Bulgaria),
Acrocephalus 26 (124), pp. 23–31.
[3] http://www.kresna.org/index_en.php.;~/motorway_en.php; ~/gallery_en.php,
~/alternative_en.php.
[4] Bos. E.J, 2008, Valuation of Ecological Networks - Case study Kresna
Gorge Bulgaria, Alterra and LEI Working Report 1896, Wageningen.
[5] http://www.kresna.org/index_en.php and inked pages on the website.
[6] EU DG TREN, 2008, TEN – T Trans-European Transport Network,
Implementation of Priority Projects Progress Report, May 2008, Brussels.
[7] http://en.wikipedia.org/wiki/Struma_motorway.
[8] Seiler, A., 2001, Ecological Effect of Roads: a Review. SLU, Uppsala.
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WIT Transactions on Ecology and the Environment, Vol 131, © 2010 WIT Press
Environmental Economics and Investment Assessment III 25
[9] Pouwels, R., R. Jochem, M.J.S.M. Reijnen, S.R. Hensen and J.G.M. van
der Greft, 2002, LARCH voor ruimtelijk ecologische beoordelingen van
landschappen, Alterra, rapport 492, Wageningen.
[10] Berthoud, G., 2002, Construction of a Motorway in the Gorge of Kresna
Corridor Connection Bulgaria – Greece: Motorway E79: Sofia-Kulata.
Report of the on-the-spot appraisal. Standing Committee 22nd meeting
Strasbourg, 2-5 December 2002.
[11] Reijnen, M.J.S.M., G. Veenbaas and R. Foppen, 1992, Het voorspellen van
het effect van snelverkeer op broedvogelpopulaties. DWW-rapport,
Rijkswaterstaat Delft/IBN-DLO, Wageningen.
[12] Konijnenburg, P. van, J. Kortman, J. Jantzen and H. van der Woerd (2001).
Effecten van Reactivering van de IJzeren Rijn: Onderzoek naar de Effecten
van Reactivering van de IJzeren Rijn op de Functies Recreëren, Wonen en
Werken, IVAM, Amsterdam.
[13] Slanina, S. and W. Davis, 2008, "Impact of local air pollution.", in:
Encyclopedia of Earth, C.J. Cleveland (ed.), Environmental Information
Coalition, National Council for Science and the Environment, Washington,
D.C.
[14] Vanya Simenova, personal information from Bulgaria.
[15] Rijkswaterstaat, Dienst Weg- en Waterbouwkunde, 2002. Effecten en
kosten van leefbaarheidsmaatregelen, Den Haag.
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26 Environmental Economics and Investment Assessment III
Implementation of the polluter pays principle –
example of planning for decommissioning
S. Lindskog1
& R. Sjöblom2
1
The Swedish Radiation Safety Authority, Sweden
2
Tekedo AB, Sweden
Abstract
The Swedish Radiation Protection Authority (SSM) and some of its predecessors
have since the late nineteen seventies overseen the Swedish system of finance for
decommissioning and waste management of nuclear facilities. This system
contains segregated funds for the costs according to best estimate and securities
to cover uncertainty.
Recently, the underlying legislation was extended to also include various
small facilities with sometimes small businesses as owners, and the Government
authorized the SSM to issue regulations as warranted and appropriate.
The implementation of the new legislation includes the challenges of
simultaneously honouring the polluter pays principle and the principle of equity
between the generations whilst at the same time complying with the
requirements on proportionality as well as harmony with other legislation.
Surveys have therefore been conducted regarding similar solutions in other
areas as well as statements in other legislations, and the results are briefly
summarized in the present paper. Previous supporting work includes analyses of
planning for decommissioning and cost calculation methodologies.
It is found that the estimated cost, prepared in accordance with the state of the
art, can form the basis for the selection of means for financial assurance. Thus,
exemption can be recommended for liabilities up to k€ 2,4, securities alone up to
M€ 0,1, and securities in combination with segregated funds above this level.
It is commented that some ombudsman type of organisation is required to
safeguard the interests of future generations with regard to environmental
liabilities, and that advice may be received from the younger generation.
Keywords: decommissioning, nuclear, fund, security, Sweden, legislation,
polluter pays principle.
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WIT Transactions on Ecology and the Environment, Vol 131, © 2010 WIT Press
Environmental Economics and Investment Assessment III 27
doi:10.2495/EEIA100031
1 Definitions
There are three levels of legislation in Sweden:
Legislation Issued by Compliance with Authorized by
Law Parliament Constitution Swedish people
Ordinance Government Laws Parliament
Regulation Competent Authority* Laws and Ordinances Government
* Such as the Swedish Radiation Safety Authority.
Laws, ordinances and regulations are legally binding and the compliance of
them is overseen and assured by our legal system, including our courts.
In addition, a Competent Authority can issue general advice with regard to a
certain regulation. It can contain clarification as to what the actual regulation is
intended to mean and may also provide examples. General advice is not legally
binding and compliance must not necessarily be upheld in a court decision.
Competent Authorities – like everybody else, e.g. a branch organization – can
also issue guidance documents. They reflect good practice, but cannot
necessarily be relied on for compliance with legislation.
In this paper, the Swedish Radiation Safety Authority (in Swedish:
Strålsäkerhetsmyndigheten) is referred to by its abbreviated name, SSM. This
paper refers to work in progress. Any conclusions represent the views of the
authors.
2 Introduction
2.1 Implementation of environmental legislation
The last few decades have meant a shift of paradigm in that basic principles have
been established and policies agreed on a number of environmental issues
including protection of health and environment, conservation, re-cycling,
sustainable development, remediation, use of best available technology, equity
between generations and the polluter pays principle (PPP), also known as the
Extended Polluter Responsibility (EPR).
Associated legislation has been issued and enforced. Releases to the
environment – e.g. as fly ash and sulphur dioxide – have plummeted.
The success rate is very varied, however, and the following was written [1] in
1997 by Staffan Westerlund, professor of environmental law at the University of
Uppsala (translation from Swedish by the present authors):
“It is well known that environmental laws seldom function well and that
environmental goals are usually not achieved. We have also become accustomed
to an almost total inefficiency of regulations intended to alter environmentally
inappropriate behaviour. It does not come as a surprise that concrete rules …
still 25 years after having come into force have not been implemented and
enforced. Over the years, there have been so many incidences of malfunctioning
of the environmental legal system that we who teach law must make a quite clear
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28 Environmental Economics and Investment Assessment III
Other documents randomly have
different content
San Sebastian Church, Manila
An exhibition of an Igorot village at the St. Louis World’s Fair of 1904
probably spread in America more of the notion of the Philippines as an
untamed wilderness than tons of statistics could correct. These, then, were
the people America had undertaken to govern—wild, naked creatures,
beside whom the North American Indian was a gentleman and a scholar!
Non-
Christian
population
Literacy
Facts of
Filipino
Attainment
s in Pre-
Spanish
Days
Indeed, a long time must elapse before you can reduce these to suspenders
and beefsteaks. A long time? Why, centuries and centuries!
Again, to the assiduous readers of press dispatches, the typical
Filipino has come to mean the fierce Mohammedan Moro;
although, there are in the Islands less than 400,000
Mohammedans of all kinds, whether fierce or urbane. Still
others have concluded that the wild-eyed nomad of the mountains, the man
with the bow and arrow, with no religion at all, must be the determining
factor of the situation because there are so many of his kind; and yet the
census reveals the total number of persons in all the Islands that do not
profess either Christianity, Mohammedanism, or Buddhism as only
102,000.
So, too, the ignorance of the Filipinos has always been believed
to be appalling and a bulwark of darkness not to be overcome
in generations, if ever; and yet the census reveals the percentage of literacy
in the entire Islands at 49.2 per cent. The percentage compares favorably
with the literacy of many of the small independent nations of the world at
present.
The facts are these, as regards the Filipinos even in Pre-Spanish days:
The Spaniards found that the inhabitants of the Islands built
and lived in planned houses, had a machinery of government of
their own, maintained a system of jurisprudence, in many cases
dwelt in ordered cities and towns and practised the arts familiar
to the most advanced peoples of their times.
Gunpowder they knew and used before 1300, when it had not
yet been introduced in Europe; and they made firearms that astonished the
Spaniards. At the siege of Manila, 1570, the natives defended their city with
cannon, and the conquerors found within the walls the factory where these
guns had been forged, as well equipped and ordered as any abroad.
The Islanders were expert in other metal-working, skilful ship-builders, able
carpenters. Copper they had worked; but bronze, of which their great guns
Religion,
alphabet,
and books
were made, they imported from China. Some of their art in silver-work
excites admiration even now, for their beautiful design and fine
workmanship.
They wove cloths of cotton, hemp, and other fibers. They were, in fact,
inheritors of two great cultural infiltrations upon what original culture the
Malays had two thousand years before: on one side, was the influence of
the Hindus and on the other the civilization of the Chinese, and to these had
been added, years before the Spaniards came, stray gleams of information
transmitted roundabout from Europe.
All this is inconsistent with the fanciful theory of the head-
hunter and the wild man of the woods, but is nevertheless the
incontestable record. Heathen they were called, but they had a
religion, and a code of morals, not at all contemptible. They
were natural musicians, possessed a variety of musical instruments, and had
native orchestras. They were fond of poetry and and honored their poets.
They had also a written alphabet and they wrote books. Every settled town
had a temple and most temples had collections of books. They were written
in the native characters on palm leaves and bamboo, and stored with the
native priests. The subjects were historical and legendary, folk-lore tales,
statutes, deeds of heroism and poems. The Spanish enthusiasts burned these
books as anti-Christian and thereby destroyed documents priceless to
succeeding ages, the few that escaped the flames testifying poignantly to
the great loss. A small collection of them was recently discovered in a cave
in the Island of Negros and ethnologists have hopes of others that may have
escaped the sharp eyes of the destructors. Professor Beyer, whose
investigations of early Filipino life and history have been so extensive, has
come upon other evidence of early Filipino letters, including an epic poem
of considerable length; but this exists now only in the memories of the
reciters. The four-thousand-odd lines of it that Professor Beyer has
translated show a rare gift of versification and imagery.
Of the written alphabets in use before the coming of the Spaniards, fourteen
were of Malay origin, one was Arabic, and one Hebrew. Of the Malayan
alphabets many were structurally alike, so that a learned Visayan must have
Traders
and
artisans
Able
Agriculturi
sts
been able to make out Tagalog words and a Pampangan to spell Ilocano. We
are not to imagine that every Filipino could read the written speech; there
were in the Islands at that time, as in India, Spain, England, and elsewhere,
the educated and the uneducated. But it seems likely that the percentage of
literacy in the Philippines, about the year 1500, let us say, was as large as in
Spain, larger than in India and compared favorably with the percentage in
other places.
The inhabitants were able traders as well as skilful artisans.
Manila was one of the great commercial centers of the East and
long had been so; it was not a mere collection of fishermen’s
huts. When the inhabitants of England were wearing skins,
painting their bodies, and gashing their flesh in religious frenzies, the
Filipinos were already conducting commercial marts in which were offered
silks, brocades, cotton and other cloths, household furniture, precious
stones, gold and gold dust, jewelry, wheat from Japan, weapons, works of
art and of utility in many metals, cultivated fruits, domesticated animals,
earthenware, and a variety of agricultural products from their rich volcanic
soil.
The people understood how to make agricultural implements
which, if crude by present standards, were nevertheless
serviceable. They knew how to make machines, to hull and
separate rice, to express oil from coconuts, and to weave their
cloths. They worked out their own problems of irrigation and in their own
way. The huge rice terraces in some parts of Luzon were and still are the
wonder of all beholders. “I know of no more impressive examples of
primitive engineering,” says Dean C. Worcester, “than the terraced
mountain-sides of Nueva Vizcaya beside which the terraced hills of Japan
sink into insignificance.”
WRITTEN AND UNWRITTEN LAWS.—The people had both written
and unwritten laws. They were made and promulgated by the chiefs after
consultation with the elders, and were “observed with so great exactness
that it was not considered possible to break them in any circumstance.”
The laws covered many of the subjects which are common in modern times.
A few of the most striking points were: Respect of parents and elders,
carried to so great a degree that not even the name of one’s father could
pass the lips, in the same way as the Hebrews regarded the name of God.
Even after reaching manhood and even after marriage, the son was under a
strict obligation to obey his father and mother. Marriage had reached the
stage of mutual consent. Marriage ceremonies approaching the religious
were elaborate, according to rank. Husband and wife were equal socially
and in the control of their property. Property was acquired principally by
occupation, but also by gift, purchase, and succession. Wills were
sometimes made. Contracts were strictly fulfilled. The Chinese writer,
Wang Ta-yuan; in a book of 1349 says: “The natives and the traders having
agreed on prices, they let the former carry off the goods and later on they
bring the amount of native products agreed upon. The traders trust them, for
they never fail to keep their bargains.” In fact, non-performance of a
contract was severely punished. Partnerships were formed and the
respective obligations of the partners enforced.
The Code of Calantiao.—The penal law was the most extensive. Penalties
were severe, altho compared with present laws, they appear cruel and
illogical. However, they compared favorably with Greek and Roman laws
as well as with the contemporary Spanish and English criminal laws.
Calantiao, the third chief of Panay, had, in 1433, promulgated a penal code.
It ran as follows:
“Ye shall not kill; neither shall ye steal; neither shall ye do harm to the aged; lest
ye incur the danger of death. All those who infringe this order shall be condemned
to death by being drowned with stones in the river, or in boiling water.
“Ye shall obey. Let all your debts with the headmen (principales) be met
punctually. He who does not obey shall receive for the first offense one hundred
lashes. If the debt is large, he shall be condemned to thrust his hand thrice into
boiling water. For the second offense, he shall be condemned to be beaten to
death.
“Observe and obey ye: let no one disturb the quiet of graves. When passing by the
caves and trees where they are, give respect to them.
Testimonies
of
Occidental
Writers
“Ye shall obey: he who makes exchange for food, let it be always done in
accordance with his word. He who does not comply, shall be beaten for one hour,
he who repeats the offense shall be exposed for one day among ants.
“They shall be burned: Those who by their strength or cunning have mocked at
and escaped punishment; or who have killed young boys; or try to steal away the
women of agorangs (rich men).
“Those shall be killed who profane sites where idols are kept, and sites where are
buried the sacred things of their diuatas (spirits) and headmen.”
All which bespeak a culture of no mean order, and occidental
writers themselves have given it the credit that it deserves, as
shown by the following testimonies:
“They had already reached a considerable degree of civilization at the
time of the Spanish conquest.”—Professor Ferdinand Blumentritt.
“The inhabitants of these Islands were by no means savages, entirely unreclaimed
from barbarism, before the Spanish advent in the sixteenth century. They had a
culture of their own.”—John Foreman.
“The inhabitants of the Philippines possessed a culture of their own prior to the
coming of the Spaniards to the Islands. Those along the coasts were the most
advanced in civilization. Their material wealth was considerable. The chief
occupations were agriculture, fishing, weaving, some manufacturing, and trade
both inter-island and with the mainland, generally in the form of barter. They were
expert navigators. They used standard weights and measures. The year was
divided into twelve lunar months. They had a peculiar phonetic alphabet, wrote
upon leaves, and had a primitive literature. The majority of the people are said to
have been able to read and write.”—Justice George A. Malcolm.
“The inhabitants practise various kinds of industry; they weave matting of
extraordinary fineness and of the brightest colors, straw hats, cigar-cases and
baskets; they manufacture cloth and tissues of every sort from leaves of the
aguana, make cambric of a texture much finer than that of France; and they also
manufacture coarse strong cloth for sails, etc.; and ropes and cables of all
dimensions; they tan and dress leather and skins to perfection; they manufacture
coarse earthenware and forge and polish arms of various kinds; they build ships of
heavy tonnage and also light and neat boats, and at Manila they frame and finish
off beautiful carriages; they are also very clever workers in gold and silver and
Schools and
Colleges
copper; and the Indian (Filipino) women are especially expert in needlework and
in all kinds of embroidery.” (Twenty years in the Philippines, pp. 304, 307.)
PROGRESS DURING SPANISH RULE.—The Spanish rule in the
Philippines lasted 350 years. The Spanish Crown meant well, but the way
her policies were translated into deeds was all but desirable. The best men
could not be induced to go to Manila. The Church wielded tremendous
power, and at times was more powerful than the government itself. Each
village was under the rule of a priest. Character was stifled; progress was
deliberately discouraged; independence of thought stamped out.
It would be doing Spain a great injustice, however, if no credit whatever is
given her rule in the Philippine Islands. She introduced Christianity into the
Islands and unequivocably converted the inhabitants to the creed, thus
setting up the only Christian country in this part of the globe with a
Christian outlook on life; in the women, particularly, the tenets of
Christianity instilled dignity and it freed them from Hindu and
Mohammedan degradations.
Efforts were also taken to teach the people the rudiments of
education. Access was thus given to the splendid tongue of
Castile, and, thru that, to all the glories and traditions of Latin
civilization. As early as 1866, for a population of 4,000,000 people, there
were 841 schools for boys and 833 for girls. In 1892, six years before the
coming of the Americans, there were 2,137 schools. There were also
colleges and universities where professional training was given. The
colleges were: University of Santo Tomas, Manila, established in 1611
(twenty-five years older than Harvard); San Juan de Letran, Municipal
Athenaeum, Normal School, College of San Jose, the Nautical School, the
School of Commercial Accounting, the Academy of Painting and Drawing,
and many other private schools, fourteen of which were in Manila. There
were also seminaries in Manila, Nueva Segovia, Cebu, Jaro, and Nueva
Caceres, where all branches of secondary instruction were taught in
addition to those prescribed for the priesthood.
Filipino
Record
Abroad
Many of the prominent Filipinos in Philippine history, as stated above,
including the national hero, Jose Rizal, had their first instructions in these
schools established by Spain.
A number of the ambitious students were sent by their parents
to complete their education in Spain, France, England,
Belgium, and Germany. Groups of these young men took part
in the various liberal movements of nineteenth century Europe.
They wrote and spoke in behalf of liberal institutions for the Islands, in
terms that would have cost them their lives in the Philippines; in fact, Rizal
was put to death upon his return to his native land. Several of these young
Filipinos even rose to eminence in the public service, a right which was
denied them at home except in a few cases in the minor judiciary. In the
eighties and nineties, a group of them of which Rizal, Juan Luna,
Resurrección Hidalgo, M. H. del Pilar, Lopez Jaena, Pedro A. Paterno, and
Dr. Pardo de Tavera were the leading spirits—made a deep impression in
the literary and artistic circles of Madrid, Paris, and Berlin. A newspaper
was founded by them in Madrid to further their political views. Although
proscribed in the Philippines, their books and articles were circulated
secretly in the Islands and helped to arouse the people and to consolidate
the growing unrest.
Opinions of Foreign Authors.—On Spain’s achievements in the
Philippines, foreign authors have been considerate. The famous French
explorer of the Pacific, for example, La Perouse, who was in Manila in
1787, wrote:
“Three million people inhabit these different islands, and that of Luzon contains
nearly a third of them. These people seem to me no way inferior to those of
Europe; they cultivate the soil with intelligence, they are carpenters, cabinet-
makers, smiths, jewelers, weavers masons, etc. I have gone through their villages
and I have found them kind, hospitable, and affable.” (“Voyage de la Perouse
autour du Monde,” Paris, 1787, II, p. 347.)
“Almost every other country of the (Malay or Indian) Archipelago is, at this day,
in point of wealth, power, and civilization, in a worse state than when Europeans
connected themselves with them three centuries back. The Philippines alone have
improved in civilization, wealth, and populousness. (“History of the Indian
The
Backgroun
d on Which
America
Had Built
Archipelago,” by John Crawford, F. R. S. Edinburgh, 1820, Vol. ii, pp. 447,
488.)
The Austrian professor, Ferdinand Blumentritt, wrote in La Solidaridad of
October 15, 1899, to this effect:
“If the general condition of the civilization of the Tagalos, Pampangos, Bicols,
Bisayans, Ilocanos, Cagayanes, and Sambales is compared to the European
constitutional countries of Servia, Roumania, Bulgaria, and Greece, the Spanish-
Filipino civilization of the said Indian districts is greater and of larger extent than
of those countries.”
And the foremost American scholar on the Philippines, gives the following
résumé of the results of the Spanish administration:
“The Spaniards did influence the Filipinos profoundly, and on the whole for the
better. There were ways, indeed, in which their record as a colonizing power in
the Philippines stands today unique in all the world for its benevolent
achievement and its substantial accomplishment of net progress. We do not need
to gloss over the defects of Spain; we do not need to condone the backward and
halting policy which at last turned the Filipinos against Spanish rule, nor to regret
the final outcome of events, in order to do Spain justice. But we must do full
justice to her actual achievements, if not as ruler, at any rate as teacher and
missionary, in order to put the Filipinos of today in their proper category.” (Le
Roy: “Philippine Life in Town and Country,” 1905, pp. 6, 7.)
It was on all that cultural background—the native and the
Spaniard—that America had built. Without belittling what she,
alone, has done for the Filipinos since 1898 it hardly can be
disputed that the rapid progress towards modern democracy in
the Islands has been due mainly to the materials she found
there. This fact has made her task a great deal easier, and is the
reason why even the early military governors thought best to preserve the
old municipal institutions with very slight changes.
Environmental Economics and Investment Assessment III 1st Edition K. Aravossis
Causes of
Earlier
Revolutions
The
Revolution
of 1896
The Pact of
Biac-na-
Bato
III. The First Philippine Republic
The earlier revolutions against Spain were actuated by well-defined causes.
They have been summarized as follows:
(1) Denial of freedom of speech and press; (2) desire for
Filipino representation; (3) proceedings by which a man was
condemned without being heard; (4) violation of domicile and
correspondence on mere secret denunciations; (5) agitation for
the secularization of parishes; (6) political and civil equality for Filipinos
and Spaniards; (7) desire for promulgation of the Spanish Constitution in
the Philippines; and (7) the martyrdom of Burgos, Gomez, and Zamora, and
later of Rizal.
The revolution of 1896, however, had an additional cause
which was dominant in the minds of the leaders. It was
“Liberty, Equality, and Fraternity.” In the words of General
Aguinaldo in a manifesto, “We aspire to the glory of obtaining
the Liberty, Independence, and Honor of the Country.”
This revolution was halted in 1897 by the Pact of Biac-na-Bato,
which was signed between the Revolutionists and the Spanish
authorities. There were three outstanding stipulations in the
pact:
First, that the Filipino leaders should leave the country for the time being.
Second, that liberal and sweeping reforms would be introduced without
delay.
Third, that the sum of $800,000 would be paid the Filipinos in two
instalments, as evidence of good faith.
The
Republic
Governmen
tal
Machinery
Set Up
The Filipinos complied with their part of the agreement; Aguinaldo and his
followers went to Hongkong. But the Spaniards did not comply with theirs;
only $400,000 was paid to the revolutionists and no reforms were
introduced.
Accordingly, Aguinaldo and his companions returned to the
Islands and renewed the struggle. On June 12, 1898 at Kawit,
Cavite, they proclaimed the Independence of the Philippines
from Spain. Soon afterwards a Philippine Republic was ratified, with
General Aguinaldo as President. The capital was established at Malolos
about 30 miles from Manila. There an elective Congress sat regularly,
passed laws, levied taxes, administered revenues, kept in motion the
machinery of justice, directed a military organization, carried on efficient
war and constantly appealed to the patriotism of the people.
A complete governmental machinery was set up. The
government was declared to be “popular, representative, and
responsible.” Church and state were made separate, and,
profiting by the experience of the past, freedom of religious
worship was expressly recognized in the Constitution. The
powers of government were made to reside in three distinct entities—the
legislative, the executive, and the judicial, to be entirely separate. It was
declared that no two of these powers should be vested in a single person or
corporation, nor can the legislative power be conferred on a single
individual alone. The government was recognized throughout the islands
and had the wholehearted support of the entire population.
At the time America insisted in imposing her sovereignty and authority not
only were the Filipinos in military control of the country; they were
administering its political affairs as well. This they did from the
establishment of the Republic until the autumn of 1899. “Up to that time,”
writes Albert G. Robinson, of the New York Evening Post, “the territory
occupied by the forces of the United States in the Island of Luzon was
confined to a very limited area in the vicinity of Manila, with a filamentary
extension northward for some fifty or sixty miles along the Manila-
Dagupan railway. Very much the same condition obtained on the other
Salient
Features
islands. One thing is certain: although greatly disturbed by the conditions of
war, this territory was under some form of governmental administration.”
THE MALOLOS CONSTITUTION.—The fundamental law that had
been prepared and adopted by the independent government has since then
been known as the “Malolos Constitution.” This Philippine Magna Carta
embodied the advanced thought of the times and was replete with sound
principles. It had all the requisites of a “fundamental law of the land”—an
enumeration of individual rights, the organization of the state and of the
government, provisions pertaining to the public welfare (such as education,
appropriation, the militia, local government, impeachment, etc.) and
provisions for constitutional revisions.
The Parliamentary System of government was adopted as best
suited to the needs of the archipelago. Sovereignty was to
reside in the people through their duly elected representatives.
The aim throughout was to adopt a government and a social order
essentially democratic, without those privileges of caste or classes which
were the determinant causes of the revolution. The popular assembly was to
be the directing power.
The following progressive principles were enunciated:
(1) That no one should be tried in courts created by private laws or by
special tribunals; (2) that throughout the republic there should not be more
than one kind of court for all citizens both in civil, criminal, and military
actions; (3) that no person or corporation should be given emoluments that
were not as compensation for public service fixed by law; (4) there shall be
no primogeniture nor should decorations and titles of nobility be accepted;
(5) that every Filipino citizen shall enjoy the right of meeting, association,
petition, and liberty of the press; (6) freedom of religious worship
throughout the land and inviolability of domicile, correspondence, and
property; (7) the right of habeas corpus; (8) gratuitous and compulsory
public instruction; (9) taxes to be in proportion to the income of the
taxpayers.
The legislative power was vested in an unicameral assembly. The
representatives elected by the people were to be representatives of the entire
nation and could not bind themselves to specific mandates from their
constituents.
The President of the republic and the Assembly were to initiate laws.
Impeachment of high officials of the government was unhesitatingly made a
part of the fundamental law. Even the President of the republic could be
impeached in cases of high treason.
A permanent commission was created to take the place of the assembly
during recess, the motive behind its creation being that legislative bodies
should be permanent because the popular will works continually and
consequently should be continually represented in the governmental
machinery.
The permanent commission was to be composed of seven members elected
by the assembly from among its members. Its powers were:
(1) To declare if a certain official of the government should be impeached;
(2) to convene the assembly to an extraordinary session in cases in which it
should constitute itself into a tribunal of justice to consider impeachments;
(3) to resolve all pending questions with a view to bringing them before the
assembly for consideration; (4) to convoke the assembly to special sessions
whenever these are necessary; (5) to substitute the assembly in its power
regarding the. constitution with the exception that the permanent
commission can not pass laws.
The executive power was vested in the President of the Republic who
exercised it through his secretaries.
The President of the Republic was elected by the constituent assembly by
an absolute majority of votes. His term of office was four years but might
be reëlected. The powers of the President were expressly enumerated. The
secretaries of departments constituted the Cabinet, presided over by the
President. There were seven departments—foreign relations; interior;
finance; war and navy; public instruction; communications and public
works; agriculture, industry, and commerce.
Ministerial responsibility was established so that whenever a cabinet had
lost the confidence of the majority of the assembly its members were
morally bound to resign.
The judicial power was vested in a supreme court and in such other
tribunals as might be created by law. The judiciary was made absolutely
independent of the legislative and executive departments. The chief justice
and the attorney-general were appointed by the Assembly with the
concurrence of the President and of the cabinet.
Provinces and municipalities were given administrative autonomy. The
central government intervened in their acts only when they over-stepped
their powers to the prejudice of general or individual interests.
A Constituent Assembly was to be convened in case of an election of the
President of the Republic and whenever there were proposed changes in the
constitution. In either of these two cases the regular assembly was dissolved
by the President and the Constituent Assembly convoked. The constituent
assembly was to be composed of the same members of the regular assembly
plus special representatives.
Such was the framework of the governmental machinery created by the first
republican constitution ever promulgated in the East. In the words of
General Aguinaldo, the Constitution was “the most glorious note in the
noble aspirations of the Philippine revolution and is an irrefutable proof
before the civilized world of the culture and capacity of the Filipino people
to govern themselves.”
Comments of Foreigners.—The comments of unbiased foreigners on this
ill-fated attempt of the Filipino people to live an independent existence all
point to the fact that the Republic together with the constitution the
independent government had established was a great work of an
unquestionably able people.
John Barrett, ex-director of the Pan-American Union, saw the Philippine
Republic in operation, and described it as follows:
“It is a government which has practically been administering the affairs of that
great island, ‘Luzon’ since the American possession of Manila, and is certainly
better than the former administration. It had a properly formed Cabinet and
Congress, the members of which, in appearance and manners, would compare
favorably with the Japanese statesmen.”
Admiral Dewey, after studying Philippine conditions, during the Spanish-
American War, spoke of the Filipinos as follows:
“In my opinion, these people are far more superior in intelligence and more
capable of self-government than the natives of Cuba. I am familiar with both
races.”
General Merrit, on his arrival in Paris in October, 1898, was reported as
saying:
“The Filipinos impressed me very favorably. I think great injustice has been done
to the native population.… They are more capable of self-government than, I
think, the Cubans are. They are considered to be good Catholics. They have
lawyers, doctors, the men of kindred professions, who stand well in the
community, and bear favorable comparison to those of other countries. They are
dignified, courteous, and reserved.”
Leonard Sargent, a naval cadet, and W. B. Wilcox, paymaster of the Navy,
after travelling over the Island of Luzon, at that time wrote a report of their
trip, which was referred by Admiral Dewey to the Navy Department with
the indorsement that it was “the most complete information obtainable.”
Mr. Sargent remarked:
“Although this government has never been recognized, and in all probability will
go out of existence without recognition, yet, it cannot be denied that, in a region
occupied by many millions of inhabitants, for nearly six months, it stood alone
between anarchy and order.
“As a tribute to the efficiency of Aguinaldo’s government and to the law-abiding
character of his subjects, I offer the fact that Mr. Wilcox and I pursued our
journey throughout in perfect security, and returned to Manila with only the most
pleasing recollections of the quiet and orderly life which we found the natives to
be leading under the new régime.”
Environmental Economics and Investment Assessment III 1st Edition K. Aravossis
A
Homogeneo
us People
IV. Population of the Philippine Islands
The Filipinos are a homogeneous people. An American, Dr.
Merton Miller, former chief ethnologist of the Philippine
Bureau of Science is the foremost authority for the claim that:
“From the extreme northern end of the Archipelago to its southernmost limits,
with the exception of the few scattered Negritos, the people of the Philippines,
pagan, Moro and Christian are one racially. There is some reason for believing
that they migrated into the islands at two different times. But in all probability
they came from the same general region and have a common ancestry.
“There are many different languages or dialects in the Philippines but all are
closely related one to another, the pronunciation and mode of speech vary but
little from one section of the Philippines to another and the majority of the words
are common to two or more of the Philippine languages. These languages,
whether spoken by pagan, Moro or Christian, belong to the great Malayo-
Polynesian family, branches of which are found in Sumatra, the Hawaiian Islands,
Madagascar and on many islands between.”
Ex-President Taft has the following to say about Filipino homogeneity:
“The word ‘tribe’ gives an erroneous impression. There is no tribal relation among
the Filipinos. There is a racial solidarity among them undoubtedly. They are
homogeneous. I can not tell the difference between an Ilocano and a Tagalog or a
Visayan.… To me all the Filipinos were alike.”
While Governor General Harrison, before a joint committee of Congress,
expressed himself thus:
“To my way of thinking, they are very remarkably homogeneous, quite as much
so as any nation in the world to-day with which I have any acquaintance. From
one end of the Philippine Islands to the other the people look very much alike;
their manners are very much the same; their style of living is about the same; and
they are being generally educated along the same lines by the government and by
the private schools, which are coöperating with the government. So that I think
Total
Population
they already have one of the prime requisites to a nationality, namely, a general
and universal feeling that they belong to the same race of people.”
The total population of the Philippine Islands according to the
Census of 1918 is 10,350,640. Of this number 9,495,272 are
Christians, while 855,368 are non-Christian so-called. The non-
Christian element, therefore, represents 8.2 per cent of the total population.
In this number are included the Mohammedans of the South and the Igorots
and other mountaineers, who have been so widely advertised abroad and
often represented as typical Filipinos.
FOREIGN POPULATION OF THE PHILIPPINE ISLANDS
American 6,405
Spanish 4,015
English 1,063
German 312
French 218
Swiss 451
Chinese 45,156
Japanese 6,684
All others 1,111
Total 65,415
COMPARATIVE POPULATION
Philippines 10,350,640
Argentina 8,284,000
Belgium 7,658,000
Canada 8,361,000
Australia 4,971,000
Cuba 2,628,000
Environmental Economics and Investment Assessment III 1st Edition K. Aravossis
Number of
Islands
Total Land
Area
Bays and
Straits
V. Geographical Items of Interest
The Philippine Archipelago is entirely in the Tropics. They lie north of the
Dutch and British Island of Borneo and the Dutch Island of Celebes; South
of the Japanese Island of Formosa; East of French Indo-China, and
Southeast of Hongkong and the Southern provinces of China.
There are 7,083 islands in all extending 1,152 statute miles
from north to south and 688 statute miles from east to west.
Two thousand four hundred and forty-one of the Islands have
names, while 4,642 are unnamed. The northernmost Island known as
Y’Ami Island is 65 miles from Formosa while the southernmost, called
Salwag, 4° 40′ from the Equator, is only 30 miles east of Borneo.
The total land area of the entire archipelago is approximately
115,000 square miles. This is in excess of the combined areas
of the States of New York, New Jersey, Pennsylvania, and
Delaware; only about 7,000 square miles less than the total area of the
British Isles; about 5,000 square miles more than the total area of Italy; and
about two-thirds the size of Spain. Luzon Island alone which is the largest is
as large as Denmark, Belgium, and Holland combined. It contains 46,969
square miles. Mindanao, the second largest, is about equal in area to
Portugal. Ten islands contain more than 10,000 square miles each or
6,400,000 acres; while 20 of the islands have between 100 and 1,000 square
miles each. About seven-eighths of the total number of islands composing
the Archipelago contain less than 1 square mile each.
There are twenty-one fine harbors and eight land-locked straits.
Manila Bay with an area of 770 square miles and a
circumference of 120 miles is reputed to be the finest in the Far
East. It is said that it can accommodate the entire fleet of the world. It is a
roadstead, in all parts of which vessels can anchor. Manila, Cebu, Iloilo,
Zamboanga, and Jolo are at present the ports of entry.
Mountains
Rivers
Lakes
Falls
Mineral
Springs
The interisland waters are shallow, averaging between seventy-five and five
hundred fathoms.
There are at least seven principal mountain ranges and twenty
more or less active volcanoes. Mount Apo in Mindanao is the
highest being 9,610 feet. Canlaon in Negros is second with 7,995 feet;
Mayon in Albay third, with 7,943 feet.
Nearly all the principal islands have important river systems. In
Luzon are the Rio Grande de Cagayan, 220 miles long, which
drains 16,000 square miles of territory, the Rio Grande de Pampanga,
emptying into Manila Bay through a dozen mouths, the Agno, the Abra,
Bued, and the more familiar Pasig. The Rio Grande de Mindanao, 330 miles
long, is the largest in the Islands, and the Agusan, also in Mindanao, is the
third in size. Mindoro has 60 rivers and Samar, 26. In Panay, are the Jalaud
and Panay and in Negros the Danao and the Lanao. Inter-island steamers
berth in the Pasig as far as the Jones Bridge. The larger rivers, in addition to
being navigable for steamers and launches of light draft for distances of
from 20 to 200 miles, could furnish abundant water power for
manufacturing purposes.
Mindanao, especially the basin of the Agusan, has a vast
number of lakes, among them the famous lakes Lanao, Mainit,
and Lagusan. Laguna de Bay, near Manila, Lake Naujan in Mindoro, Taal,
and Bombon lakes in Batangas, and Lake Bito in Leyte are also noted for
size and beauty.
The Falls of Pagsanjan and the Botocan at Majayjay, in Laguna
Province; the Maria Cristina, the Pigduktan, and Kalilokan, in
Mindanao, are the largest and most beautiful.
Some 170 or more medico-mineral springs, hot and cold, are
known in the Islands, many rivaling the most famous of Europe
and America. Near Manila are those of Los Baños, Sibul,
Lemery, Tivi, and Marilao.
Climate
Father Algué, the world famous Director of the Weather
Bureau, divides the climate into three types, the classification
being based on distance above sea level and exposure to ocean breezes.
November, December, January, and February are the temperate months. The
mean average temperature at this season is about 77° to 79° Fahrenheit. In
April, May, and June, the hot months, the mean average is between 83° and
84°. In other months it is about 80°. The nights are seldom unpleasantly hot
even in the hot season, and a temperature of 100° is a rarity in Manila. The
mountain regions of the north are cool as September in the temperate zone.
The mean average maximum for Baguio is 80° and the minimum 53°. Far
south, nearer the equator, in some localities it is hotter; but Zamboanga and
the Provinces of Bukidnon and Lanao boast a most agreeable and healthful
climate.
The climate is thus mildly tropical. Sunstrokes are unknown. The recorded
death rate per 1,000 whites in Manila for 1917 was 8.8, as compared with
16.5 for New York, 15 for San Francisco, 14 for Chicago, 18 for Glasgow,
and 22 for Belfast.
DIFFERENCES IN TIME
Manila is in advance of:
London 8 hours and 3 minutes.
New York 12 hours and 59 minutes.
San Francisco 16 hours and 11 minutes.
Washington 13 hours.
COMPARATIVE AREAS
Sq. Miles
Philippines 114,400
British Isles 121,438
New York, New Jersey, Pennsylvania, and Delaware 104,970
Sq. Miles
Japan 147,698
Hungary 125,641
Italy 110,660
Norway 124,675
RAINFALL
Maximum days of rain in July, August, September.
Minimum days of rain in February and March.
Dry Season: November to May, inclusive.
Wet Season: June to October, inclusive.
Typhoons: Frequent in July, August, September, and October.
The lowest average rainfall for the last twelve years for the whole
Archipelago was 60.73 inches in the driest region, the highest, 125.68, in
the wettest. Manila’s average was 75.46.
Environmental Economics and Investment Assessment III 1st Edition K. Aravossis
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Environmental Economics and Investment Assessment III 1st Edition K. Aravossis

  • 1. Environmental Economics and Investment Assessment III 1st Edition K. Aravossis pdf download https://ebookgate.com/product/environmental-economics-and- investment-assessment-iii-1st-edition-k-aravossis/ Get Instant Ebook Downloads – Browse at https://ebookgate.com
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  • 6. Environmental Economics and Investment Assessment III WIT Press publishes leading books in Science and Technology. Visit our website for the current list of titles. www.witpress.com WITeLibrary Home of the Transactions of the Wessex Institute. Papers presented at Environmental Economics III are archived in the WIT eLibrary in volume 131 of WIT Transactions on Ecology and the Environment (ISSN 1743-3541). The WIT eLibrary provides the international scientific community with immediate and permanent access to individual papers presented at WIT conferences. Visit the WIT eLibrary at www.witpress.com.
  • 7. THIRD INTERNATIONAL CONFERENCE ON ENVIRONMENTAL ECONOMICS AND INVESTMENT ASSESSMENT K. Aravossis National Technical University of Athens, Greece C.A. Brebbia Wessex Institute of Technology, UK Organised by Wessex Institute of Technology, UK The National Technical University of Athens, Greece Sponsored by WIT Transactions on Ecology and the Environment INTERNATIONAL SCIENTIFIC ADVISORY COMMITTEE CONFERENCE CHAIRMEN Environmental Economics III D. Damigos R. Greiner K.-J. Hsu S. Idowu A.R. Perks R. Sjoblom J. Vleugel
  • 8. WIT Transactions Editorial Board Transactions Editor Carlos Brebbia Wessex Institute of Technology Ashurst Lodge, Ashurst Southampton SO40 7AA, UK Email: carlos@wessex.ac.uk B Abersek University of Maribor, Slovenia Y N Abousleiman University of Oklahoma, USA P L Aguilar University of Extremadura, Spain K S Al Jabri Sultan Qaboos University, Oman E Alarcon Universidad Politecnica de Madrid, Spain A Aldama IMTA, Mexico C Alessandri Universita di Ferrara, Italy D Almorza Gomar University of Cadiz, Spain B Alzahabi Kettering University, USA J A C Ambrosio IDMEC, Portugal A M Amer Cairo University, Egypt S A Anagnostopoulos University of Patras, Greece M Andretta Montecatini, Italy E Angelino A.R.P.A. Lombardia, Italy H Antes Technische Universitat Braunschweig, Germany M A Atherton South Bank University, UK A G Atkins University of Reading, UK D Aubry Ecole Centrale de Paris, France H Azegami Toyohashi University of Technology, Japan A F M Azevedo University of Porto, Portugal J Baish Bucknell University, USA J M Baldasano Universitat Politecnica de Catalunya, Spain J G Bartzis Institute of Nuclear Technology, Greece A Bejan Duke University, USA M P Bekakos Democritus University of Thrace, Greece G Belingardi Politecnico di Torino, Italy R Belmans Katholieke Universiteit Leuven, Belgium C D Bertram The University of New South Wales, Australia D E Beskos University of Patras, Greece S K Bhattacharyya Indian Institute of Technology, India E Blums Latvian Academy of Sciences, Latvia J Boarder Cartref Consulting Systems, UK B Bobee Institut National de la Recherche Scientifique, Canada H Boileau ESIGEC, France J J Bommer Imperial College London, UK M Bonnet Ecole Polytechnique, France C A Borrego University of Aveiro, Portugal A R Bretones University of Granada, Spain J A Bryant University of Exeter, UK F-G Buchholz Universitat Gesanthochschule Paderborn, Germany M B Bush The University of Western Australia, Australia F Butera Politecnico di Milano, Italy J Byrne University of Portsmouth, UK W Cantwell Liverpool University, UK D J Cartwright Bucknell University, USA P G Carydis National Technical University of Athens, Greece J J Casares Long Universidad de Santiago de Compostela, Spain M A Celia Princeton University, USA A Chakrabarti Indian Institute of Science, India A H-D Cheng University of Mississippi, USA
  • 9. J Chilton University of Lincoln, UK C-L Chiu University of Pittsburgh, USA H Choi Kangnung National University, Korea A Cieslak Technical University of Lodz, Poland S Clement Transport System Centre, Australia M W Collins Brunel University, UK J J Connor Massachusetts Institute of Technology, USA M C Constantinou State University of New York at Buffalo, USA D E Cormack University of Toronto, Canada M Costantino Royal Bank of Scotland, UK D F Cutler Royal Botanic Gardens, UK W Czyczula Krakow University of Technology, Poland M da Conceicao Cunha University of Coimbra, Portugal A Davies University of Hertfordshire, UK M Davis Temple University, USA A B de Almeida Instituto Superior Tecnico, Portugal E R de Arantes e Oliveira Instituto Superior Tecnico, Portugal L De Biase University of Milan, Italy R de Borst Delft University of Technology, Netherlands G De Mey University of Ghent, Belgium A De Montis Universita di Cagliari, Italy A De Naeyer Universiteit Ghent, Belgium W P De Wilde Vrije Universiteit Brussel, Belgium L Debnath University of Texas-Pan American, USA N J Dedios Mimbela Universidad de Cordoba, Spain G Degrande Katholieke Universiteit Leuven, Belgium S del Giudice University of Udine, Italy G Deplano Universita di Cagliari, Italy I Doltsinis University of Stuttgart, Germany M Domaszewski Universite de Technologie de Belfort-Montbeliard, France J Dominguez University of Seville, Spain K Dorow Pacific Northwest National Laboratory, USA W Dover University College London, UK C Dowlen South Bank University, UK J P du Plessis University of Stellenbosch, South Africa R Duffell University of Hertfordshire, UK A Ebel University of Cologne, Germany E E Edoutos Democritus University of Thrace, Greece G K Egan Monash University, Australia K M Elawadly Alexandria University, Egypt K-H Elmer Universitat Hannover, Germany D Elms University of Canterbury, New Zealand M E M El-Sayed Kettering University, USA D M Elsom Oxford Brookes University, UK A El-Zafrany Cranfield University, UK F Erdogan Lehigh University, USA F P Escrig University of Seville, Spain D J Evans Nottingham Trent University, UK J W Everett Rowan University, USA M Faghri University of Rhode Island, USA R A Falconer Cardiff University, UK M N Fardis University of Patras, Greece P Fedelinski Silesian Technical University, Poland H J S Fernando Arizona State University, USA S Finger Carnegie Mellon University, USA J I Frankel University of Tennessee, USA D M Fraser University of Cape Town, South Africa M J Fritzler University of Calgary, Canada U Gabbert Otto-von-Guericke Universitat Magdeburg, Germany G Gambolati Universita di Padova, Italy C J Gantes National Technical University of Athens, Greece L Gaul Universitat Stuttgart, Germany A Genco University of Palermo, Italy N Georgantzis Universitat Jaume I, Spain P Giudici Universita di Pavia, Italy F Gomez Universidad Politecnica de Valencia, Spain R Gomez Martin University of Granada, Spain D Goulias University of Maryland, USA K G Goulias Pennsylvania State University, USA F Grandori Politecnico di Milano, Italy W E Grant Texas A & M University, USA S Grilli University of Rhode Island, USA
  • 10. R H J Grimshaw Loughborough University, UK D Gross Technische Hochschule Darmstadt, Germany R Grundmann Technische Universitat Dresden, Germany A Gualtierotti IDHEAP, Switzerland R C Gupta National University of Singapore, Singapore J M Hale University of Newcastle, UK K Hameyer Katholieke Universiteit Leuven, Belgium C Hanke Danish Technical University, Denmark K Hayami National Institute of Informatics, Japan Y Hayashi Nagoya University, Japan L Haydock Newage International Limited, UK A H Hendrickx Free University of Brussels, Belgium C Herman John Hopkins University, USA S Heslop University of Bristol, UK I Hideaki Nagoya University, Japan D A Hills University of Oxford, UK W F Huebner Southwest Research Institute, USA J A C Humphrey Bucknell University, USA M Y Hussaini Florida State University, USA W Hutchinson Edith Cowan University, Australia T H Hyde University of Nottingham, UK M Iguchi Science University of Tokyo, Japan D B Ingham University of Leeds, UK L Int Panis VITO Expertisecentrum IMS, Belgium N Ishikawa National Defence Academy, Japan J Jaafar UiTm, Malaysia W Jager Technical University of Dresden, Germany Y Jaluria Rutgers University, USA C M Jefferson University of the West of England, UK P R Johnston Griffith University, Australia D R H Jones University of Cambridge, UK N Jones University of Liverpool, UK D Kaliampakos National Technical University of Athens, Greece N Kamiya Nagoya University, Japan D L Karabalis University of Patras, Greece M Karlsson Linkoping University, Sweden T Katayama Doshisha University, Japan K L Katsifarakis Aristotle University of Thessaloniki, Greece J T Katsikadelis National Technical University of Athens, Greece E Kausel Massachusetts Institute of Technology, USA H Kawashima The University of Tokyo, Japan B A Kazimee Washington State University, USA S Kim University of Wisconsin-Madison, USA D Kirkland Nicholas Grimshaw & Partners Ltd, UK E Kita Nagoya University, Japan A S Kobayashi University of Washington, USA T Kobayashi University of Tokyo, Japan D Koga Saga University, Japan S Kotake University of Tokyo, Japan A N Kounadis National Technical University of Athens, Greece W B Kratzig Ruhr Universitat Bochum, Germany T Krauthammer Penn State University, USA C-H Lai University of Greenwich, UK M Langseth Norwegian University of Science and Technology, Norway B S Larsen Technical University of Denmark, Denmark F Lattarulo Politecnico di Bari, Italy A Lebedev Moscow State University, Russia L J Leon University of Montreal, Canada D Lewis Mississippi State University, USA S lghobashi University of California Irvine, USA K-C Lin University of New Brunswick, Canada A A Liolios Democritus University of Thrace, Greece S Lomov Katholieke Universiteit Leuven, Belgium J W S Longhurst University of the West of England, UK G Loo The University of Auckland, New Zealand D Lóránt Károly Róbert College, Hungary J Lourenco Universidade do Minho, Portugal
  • 11. J E Luco University of California at San Diego, USA H Lui State Seismological Bureau Harbin, China C J Lumsden University of Toronto, Canada L Lundqvist Division of Transport and Location Analysis, Sweden T Lyons Murdoch University, Australia Y-W Mai University of Sydney, Australia M Majowiecki University of Bologna, Italy D Malerba Università degli Studi di Bari, Italy G Manara University of Pisa, Italy B N Mandal Indian Statistical Institute, India Ü Mander University of Tartu, Estonia H A Mang Technische Universitat Wien, Austria G D Manolis Aristotle University of Thessaloniki, Greece W J Mansur COPPE/UFRJ, Brazil N Marchettini University of Siena, Italy J D M Marsh Griffith University, Australia J F Martin-Duque Universidad Complutense, Spain T Matsui Nagoya University, Japan G Mattrisch DaimlerChrysler AG, Germany F M Mazzolani University of Naples “Federico II”, Italy K McManis University of New Orleans, USA A C Mendes Universidade de Beira Interior, Portugal R A Meric Research Institute for Basic Sciences, Turkey J Mikielewicz Polish Academy of Sciences, Poland N Milic-Frayling Microsoft Research Ltd, UK R A W Mines University of Liverpool, UK C A Mitchell University of Sydney, Australia K Miura Kajima Corporation, Japan A Miyamoto Yamaguchi University, Japan T Miyoshi Kobe University, Japan G Molinari University of Genoa, Italy T B Moodie University of Alberta, Canada D B Murray Trinity College Dublin, Ireland G Nakhaeizadeh DaimlerChrysler AG, Germany M B Neace Mercer University, USA D Necsulescu University of Ottawa, Canada F Neumann University of Vienna, Austria S-I Nishida Saga University, Japan H Nisitani Kyushu Sangyo University, Japan B Notaros University of Massachusetts, USA P O’Donoghue University College Dublin, Ireland R O O’Neill Oak Ridge National Laboratory, USA M Ohkusu Kyushu University, Japan G Oliveto Universitá di Catania, Italy R Olsen Camp Dresser & McKee Inc., USA E Oñate Universitat Politecnica de Catalunya, Spain K Onishi Ibaraki University, Japan P H Oosthuizen Queens University, Canada E L Ortiz Imperial College London, UK E Outa Waseda University, Japan A S Papageorgiou Rensselaer Polytechnic Institute, USA J Park Seoul National University, Korea G Passerini Universita delle Marche, Italy B C Patten University of Georgia, USA G Pelosi University of Florence, Italy G G Penelis Aristotle University of Thessaloniki, Greece W Perrie Bedford Institute of Oceanography, Canada R Pietrabissa Politecnico di Milano, Italy H Pina Instituto Superior Tecnico, Portugal M F Platzer Naval Postgraduate School, USA D Poljak University of Split, Croatia V Popov Wessex Institute of Technology, UK H Power University of Nottingham, UK D Prandle Proudman Oceanographic Laboratory, UK M Predeleanu University Paris VI, France M R I Purvis University of Portsmouth, UK I S Putra Institute of Technology Bandung, Indonesia Y A Pykh Russian Academy of Sciences, Russia F Rachidi EMC Group, Switzerland M Rahman Dalhousie University, Canada K R Rajagopal Texas A & M University, USA T Rang Tallinn Technical University, Estonia J Rao Case Western Reserve University, USA A M Reinhorn State University of New York at Buffalo, USA
  • 12. A D Rey McGill University, Canada D N Riahi University of Illinois at Urbana- Champaign, USA B Ribas Spanish National Centre for Environmental Health, Spain K Richter Graz University of Technology, Austria S Rinaldi Politecnico di Milano, Italy F Robuste Universitat Politecnica de Catalunya, Spain J Roddick Flinders University, Australia A C Rodrigues Universidade Nova de Lisboa, Portugal F Rodrigues Poly Institute of Porto, Portugal C W Roeder University of Washington, USA J M Roesset Texas A & M University, USA W Roetzel Universitaet der Bundeswehr Hamburg, Germany V Roje University of Split, Croatia R Rosset Laboratoire d’Aerologie, France J L Rubio Centro de Investigaciones sobre Desertificacion, Spain T J Rudolphi Iowa State University, USA S Russenchuck Magnet Group, Switzerland H Ryssel Fraunhofer Institut Integrierte Schaltungen, Germany S G Saad American University in Cairo, Egypt M Saiidi University of Nevada-Reno, USA R San Jose Technical University of Madrid, Spain F J Sanchez-Sesma Instituto Mexicano del Petroleo, Mexico B Sarler Nova Gorica Polytechnic, Slovenia S A Savidis Technische Universitat Berlin, Germany A Savini Universita de Pavia, Italy G Schmid Ruhr-Universitat Bochum, Germany R Schmidt RWTH Aachen, Germany B Scholtes Universitaet of Kassel, Germany W Schreiber University of Alabama, USA A P S Selvadurai McGill University, Canada J J Sendra University of Seville, Spain J J Sharp Memorial University of Newfoundland, Canada Q Shen Massachusetts Institute of Technology, USA X Shixiong Fudan University, China G C Sih Lehigh University, USA L C Simoes University of Coimbra, Portugal A C Singhal Arizona State University, USA P Skerget University of Maribor, Slovenia J Sladek Slovak Academy of Sciences, Slovakia V Sladek Slovak Academy of Sciences, Slovakia A C M Sousa University of New Brunswick, Canada H Sozer Illinois Institute of Technology, USA D B Spalding CHAM, UK P D Spanos Rice University, USA T Speck Albert-Ludwigs-Universitaet Freiburg, Germany C C Spyrakos National Technical University of Athens, Greece I V Stangeeva St Petersburg University, Russia J Stasiek Technical University of Gdansk, Poland G E Swaters University of Alberta, Canada S Syngellakis University of Southampton, UK J Szmyd University of Mining and Metallurgy, Poland S T Tadano Hokkaido University, Japan H Takemiya Okayama University, Japan I Takewaki Kyoto University, Japan C-L Tan Carleton University, Canada M Tanaka Shinshu University, Japan E Taniguchi Kyoto University, Japan S Tanimura Aichi University of Technology, Japan J L Tassoulas University of Texas at Austin, USA M A P Taylor University of South Australia, Australia A Terranova Politecnico di Milano, Italy E Tiezzi University of Siena, Italy A G Tijhuis Technische Universiteit Eindhoven, Netherlands T Tirabassi Institute FISBAT-CNR, Italy S Tkachenko Otto-von-Guericke-University, Germany N Tosaka Nihon University, Japan T Tran-Cong University of Southern Queensland, Australia R Tremblay Ecole Polytechnique, Canada I Tsukrov University of New Hampshire, USA
  • 13. R Turra CINECA Interuniversity Computing Centre, Italy S G Tushinski Moscow State University, Russia J-L Uso Universitat Jaume I, Spain E Van den Bulck Katholieke Universiteit Leuven, Belgium D Van den Poel Ghent University, Belgium R van der Heijden Radboud University, Netherlands R van Duin Delft University of Technology, Netherlands P Vas University of Aberdeen, UK W S Venturini University of Sao Paulo, Brazil R Verhoeven Ghent University, Belgium A Viguri Universitat Jaume I, Spain Y Villacampa Esteve Universidad de Alicante, Spain F F V Vincent University of Bath, UK S Walker Imperial College, UK G Walters University of Exeter, UK B Weiss University of Vienna, Austria H Westphal University of Magdeburg, Germany J R Whiteman Brunel University, UK Z-Y Yan Peking University, China S Yanniotis Agricultural University of Athens, Greece A Yeh University of Hong Kong, China J Yoon Old Dominion University, USA K Yoshizato Hiroshima University, Japan T X Yu Hong Kong University of Science & Technology, Hong Kong M Zador Technical University of Budapest, Hungary K Zakrzewski Politechnika Lodzka, Poland M Zamir University of Western Ontario, Canada R Zarnic University of Ljubljana, Slovenia G Zharkova Institute of Theoretical and Applied Mechanics, Russia N Zhong Maebashi Institute of Technology, Japan H G Zimmermann Siemens AG, Germany
  • 14. Editors K. Aravossis National Technical University of Athens, Greece & C.A. Brebbia Wessex Institute of Technology, UK Environmental Economics and Investment Assessment III
  • 15. Published by WIT Press Ashurst Lodge, Ashurst, Southampton, SO40 7AA, UK Tel: 44 (0) 238 029 3223; Fax: 44 (0) 238 029 2853 E-Mail: witpress@witpress.com http://www.witpress.com For USA, Canada and Mexico Computational Mechanics Inc 25 Bridge Street, Billerica, MA 01821, USA Tel: 978 667 5841; Fax: 978 667 7582 E-Mail: infousa@witpress.com http://www.witpress.com British Library Cataloguing-in-Publication Data A Catalogue record for this book is available from the British Library ISBN: 978-1-84564-436-9 ISSN: 1746-448X (print) ISSN: 1743-3541 (online) The texts of the papers in this volume were set individually by the authors or under their supervision. Only minor corrections to the text may have been carried out by the publisher. No responsibility is assumed by the Publisher, the Editors and Authors for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions or ideas contained in the material herein. The Publisher does not necessarily endorse the ideas held, or views expressed by the Editors or Authors of the material contained in its publications. © WIT Press 2010 Printed in Great Britain by MPG Books Group, Bodmin and King’s Lynn. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the Publisher. K. Aravossis National Technical University of Athens, Greece C.A. Brebbia Wessex Institute of Technology, UK
  • 16. Preface This book contains the edited versions of papers presented at the Third International Conference on Environmental Economics and Investment Assessment, held in Cyprus, in 2010. The conference was organised by the Wessex Institute of Technology in collaboration with the National Technical University of Athens. The current emphasis on sustainable development is a consequence of the general awareness of the need to solve numerous environmental problems resulting from our modern society. This has resulted in the need to assess the impact of economic investments on the environment. The book addresses the topic of Investment Assessment and Environmental Economics in an integrated way; in accordance with the principles of sustainability considering the social and environmental impacts of new investments. The usual assumption is that it is difficult to achieve the growth of enterprise in an environmentally friendly manner. This paradigm usually associated with developed countries is now affecting all other regions of the globe. The main question is if the development of enterprise is compatible with environmental protection. The roots of financial development are financial growth, which in conventional terms requires an increase in production and the use of more resources. Overuse of those resources can result in ecological destruction and a larger release of waste and pollution into the environment. The book addresses these problems of primary importance to Society, discussing and proposing a more constructive and progressive approach to ensure sustainability. Methodologies to address these important problems are presented. The contributions comprise the following broad subject headings: Environmental Policies, Planning and Assessment; Cost Benefits Analysis; Decision Support Systems; Natural Resources Management; Social Issues and Environmental Policies.
  • 17. This book will be of interest to government officials, politicians, environmental experts, economists, research scientists in the area of environmental economics, operations researchers, senior management in all kinds of companies and regional government. The Editors are grateful to all the authors for their excellent contributions and in particular to the members of the International Scientific Advisory committee as well as all reviewers for their reviews of the abstracts and the papers and their help on ensuring the high quality of this book. The Editors Cyprus, 2010
  • 18. Contents Section 1: Environmental policies, planning and assessment The impact of the emission trading system on companies’ profitability: the case of Greece K. Aravossis & G. Garoufi .................................................................................. 3 Infrastructure and ecology: ‘limited’ costs may hide substantial impacts E. J. Bos & J. M. Vleugel................................................................................... 17 Implementation of the polluter pays principle – example of planning for decommissioning S. Lindskog & R. Sjöblom.................................................................................. 27 Estimating the economic benefits of redeveloping the former Athens International Airport D. Damigos & E. Laliotis .................................................................................. 39 Assessment of the impact of local energy policies in reducing greenhouse gas emissions A. Arteconi, C. M. Bartolini, C. Brandoni & F. Polonara................................. 51 The contradiction between modernising irrigation and water buyback L. Crase & S. O’Keefe ....................................................................................... 63 The cost of food safety due to animal by-product regulation in Spain: who pays for it? A. Esturo, N. González, P. Greño, M. Martinez-Granado & M. Saez de Buruaga....................................................................................... 71
  • 19. Section 2: Cost benefits analysis Cost-benefit risk of renewable energy K.-J. Hsu............................................................................................................ 85 New benefit-cost methodology for evaluating renewable and energy efficiency programs of the US Department of Energy R. T. Ruegg & G. B. Jordan............................................................................... 95 Assessing the efficiency of municipal expenditures regarding environmental protection J. Soukopova & E. Bakos................................................................................. 107 Car scrappage incentives policies: a life cycle study on GHG emissions M. Lelli, G. Pede, M. P. Valentini & P. Masoni.............................................. 121 Section 3: Decision support systems Towards a decision support tool: sensitivity mapping of the French Mediterranean coastal environment (a case study of fishery and lodging) C. Scheurle, H. Thébault & C. Duffa............................................................... 135 Funding evaluation model for the implementation of wastewater treatment projects through public private partnerships A. Ch. Karmperis, A. Sotirchos, K. Aravossis & I. Tatsiopoulos..................... 147 Section 4: Natural resources management Payments for environmental services (PES): contribution to Indigenous livelihoods R. Greiner........................................................................................................ 163 Enhancing natural resource management through payment for ecosystem services S. Vemuri & J. Gorman.................................................................................... 175 Investment in sustainable buildings: the role of green building assessment systems in real estate valuation S. Geissler & M. Groß..................................................................................... 187 Hydropower and sustainable development: a case study of Lao PDR S. Jusi............................................................................................................... 199
  • 20. Section 5: Social issues and environmental policies Sustainability actions in Mediterranean countries through cooperation partnerships: the case of the project PAMLED T. Daddi, F. Farro, S. Vaglio, G. Bartoli & F. Iraldo..................................... 213 Relevance of environmental and public safety issues predicts public importance of economic vitality R. Thomas, S. Conway, P. Washeba, R. Cameron & R. Skidmore................... 225 Values held by young stakeholders on financial planning regarding liabilities for nuclear decommissioning B. Labor & S. Lindskog ................................................................................... 235 Evaluating the complementarity of the educational function in agriculture Y. Ohe .............................................................................................................. 247 Green economies and green jobs: implications for South Africa G. Nhamo......................................................................................................... 257 Author Index.................................................................................................. 269
  • 24. The impact of the emission trading system on companies’ profitability: the case of Greece K. Aravossis & G. Garoufi Sector of Industrial Management & Operational Research, School of Mechanical Engineering, National Technical University of Athens, Greece Abstract The European Union is in many respects a key player in the global efforts to curb emissions of greenhouse gases (GHGs). Maintaining the role of the frontrunner, the European Parliament and the Council established on 13 October 2003 a scheme of GHG emission allowance trading within the Community, the so-called Emission Trading System (ETS). Greece, as a Member State of the European Union, takes action in the field of the reduction of carbon dioxide (CO2) emissions. According to the Directive 2003/87/EC, the Greek government includes in National Allocation Plans (NAPs) the biggest polluters from each one of the energy demand sectors. More specifically, the Directive covers electricity industries, other industrial combustion installations, refineries, metal ore roasting and cindering installations, pig iron and steel production installations, cement clinker production installations, lime production installations, glass manufacture installations, ceramic production installations and pulp and paper production installations. The objective of this paper is to examine the impact of the Emission Trading System on the profitability of Greek companies included in the NAPs. On this basis, the quantities of carbon dioxide that every participant has emitted during each year of the period 2005-2008 are compared respectively to the quantity of emission allowances issued. The balance indicates whether the tradable allowances are responsible for the participants’ financial results (of their balance sheets). www.witpress.com, ISSN 1743-3541 (on-line) WIT Transactions on Ecology and the Environment, Vol 131, © 2010 WIT Press Environmental Economics and Investment Assessment III 3 doi:10.2495/EEIA100011
  • 25. Financial indicators are used to present the impact of the acquisition or sale of allowances on the total turnover and the profit before tax of the participating companies. An additional goal of this paper is to identify the causes that resulted in a surplus or shortage of allowances, taking into consideration financial, as well as environmental, parameters. Consequently, some useful conclusions are drawn concerning the management of allowances that are granted for free to the participating companies. Keywords: greenhouse gases, CO2 emissions, emission trading system, allowances, companies’ profitability. 1 Introduction The United Nations Framework Convention on Climate Change (UNFCCC) and the Integrated Pollution Prevention and Control (IPPC) Directive were the predecessors of the Kyoto Protocol, which sets targets, timetables and legally binding emissions, for Annex I countries, concerning carbon dioxide (CO2), and other greenhouse gases. The foundation stone and the legal bedrock of the flexible market mechanisms were laid by the UNFCCC, but the Kyoto Protocol established them, in order to coordinate the efforts in the field of cost-effective environmental protection. Directive 2003/87/EC of the European Parliament and the Council established a scheme of greenhouse gas emission allowance trading within the community, the so-called Emission Trading System (ETS) [1]. In Greece, the activities covered by the provisions of Directive 2003/87/EC differ significantly in terms of the share of their emissions from combustions and emissions from processes. Considering this, the allocation of emission allowances is carried out in two stages, first at activity level and then at installation level. The activities under examination are the ones referred in Annex I of the Directive, namely energy activities and other combustion installations, mineral oil refineries, production and processing of ferrous metals, production of cement and lime, manufacture of glass and ceramic products and production of paper and cardboard [2]. 2 The Greek national allocation plans The first Greek NAP, concerning the three-year period 2005-2007, included 141 installations and allocated them approximately 223,3 Mtn CO2 [3], while the second Greek NAP, concerning the first period of commitment under the Protocol, 2008-2012, includes 140 installations and allocates them approximately 341,5 Mtn CO2 [4]. The installations that finally submitted verified emission reports for the first period outnumbered those initially included in the NAP. On the contrary, the installations that submitted annual verified emission reports for 2008, the first year of the five-year period, were noticeably less than those which were initially included in the second NAP. This reduction depends to a great extent on the financial crisis which led to malfunction or even closure of a considerable number of other combustion installations. www.witpress.com, ISSN 1743-3541 (on-line) WIT Transactions on Ecology and the Environment, Vol 131, © 2010 WIT Press 4 Environmental Economics and Investment Assessment III
  • 26. 3 The impact of the ETS on Greek companies’ profitability 3.1 The trends of CO2 emission allowance prices Trading of carbon dioxide emissions takes place in marketplaces since 2005. During the first year of operation of the multi-country, multi-sector GHG Emission Trading System, EUAs (EU Allowance Unit of one tonne of CO2) were priced on the average at 21.37 €/tn CO2 eq. [5], after many fluctuations, by reason of immaturity of the market. In 2006, the market was, once more, characterized by instability and EUAs were priced at 18.18 €/tn CO2 eq. on the average. Prices decreased, due to the fact that EUAs for trading period 2008-2012 stimulated a lot of interest. In 2007, EUA prices plummeted. The price of a tonne of carbon dioxide in Europe often fell below 1 €/tn CO2 eq. [5]. Demand for permits to emit CO2 dropped off, since traders had lost all interest of first trading period’s EUAs and the price was 1.44 €/ton CO2 eq. on the average. Prices were kept stable during 2008. In grace of traders’ raised interest, EUAs were priced at 22.66 €/tn CO2 eq. [5] on the average. 3.2 The impact of the ETS through diagrams and financial indicators Undoubtedly, the ETS has influenced Greek companies’ profitability. The average emission allowance price per year, as well as data concerning the companies’ CO2 emissions [6] were required in order to examine thoroughly its impact. The following diagrams present the income from the surplus CO2 emission allowances and the expenses on the acquisition of extra ones, of representative companies from each sector. Moreover, two financial indicators were used so as to examine the financial situation of the above companies after the installation of the ETS. The impact of the acquisition or sale of CO2 emission allowances on the total turnover and the profit before tax of the participating companies was calculated, using financial results from the companies’ balance sheets. 3.2.1 The impact of the ETS on the total turnover of the participating sectors’ companies The first diagram depicts the comparison between the average of indicators presenting the impact of the acquisition or sale of emission allowances on the total turnover of the companies during 2005-2007 and 2008. More specifically, the first bar concerns 2008, while the second one concerns the three-year period 2005-2007. By studying the diagram, it is obvious that the ETS doesn’t exert much influence on the paper and cement clinker production sectors. Nonetheless, the lime and ceramic production installations had either shortage or small surplus of allowances during the first tradable period, whereas big part of their income proceeds from the sale of the surplus CO2 emission allowances in 2008. www.witpress.com, ISSN 1743-3541 (on-line) WIT Transactions on Ecology and the Environment, Vol 131, © 2010 WIT Press Environmental Economics and Investment Assessment III 5
  • 27. Figure 1: Income from the sale of CO2 emission allowances and expenses on their acquisition during 2005. On the contrary, the steel production installations have surplus of allowances during both of the periods examined. More precisely, the biggest share of income due to the sale of CO2 emission allowances arises during 2005-2007. Finally, the Greek Public Power Corporation (PPC) seems to have faced an extended shortage of allowances in 2008. 3.2.2 The impact of the ETS on the profit before tax of the participating sectors’ companies The second diagram pictures the comparison between the average of indicators presenting the impact of the acquisition or sale of emission allowances on the profit before tax of the companies during 2005-2007 and 2008. Likewise, the www.witpress.com, ISSN 1743-3541 (on-line) WIT Transactions on Ecology and the Environment, Vol 131, © 2010 WIT Press 6 Environmental Economics and Investment Assessment III
  • 28. Figure 2: Income from the sale of CO2 emission allowances and expenses on their acquisition during 2006. first bar concerns 2008, while the second one concerns the three-year period 2005-2007. Undoubtedly, the ETS has aided numerous companies from the lime and ceramic production sector to improve their economic situation, especially since the beginning of the financial crisis. Regarding the steel production installations, the diagram gives the impression that the ETS has helped them raise their profits. Oppositely to the above, the ETS unquestionably presides over 45% of the heavy loss the PPC announced in 2008. www.witpress.com, ISSN 1743-3541 (on-line) WIT Transactions on Ecology and the Environment, Vol 131, © 2010 WIT Press Environmental Economics and Investment Assessment III 7
  • 29. Figure 3: Income from the sale of CO2 emission allowances and expenses on their acquisition during 2007. 4 Analysis of the impact of the ETS on Greek companies 4.1 Power generation sector As far as the Greek Public Power Corporation (PPC) is concerned, the ETS seems to incur much of the damage in the company’s profitability. Not only has the PPC shouldered the responsibility to cover the energy demands of the majority of Greek capitals, but also operates technologically old electricity generation units, using lignite [7]. The above factors explain the company’s shortage of emission allowances, which is growing in 2008, since it’s the first year of a period that demands reduction of CO2 emissions. www.witpress.com, ISSN 1743-3541 (on-line) WIT Transactions on Ecology and the Environment, Vol 131, © 2010 WIT Press 8 Environmental Economics and Investment Assessment III
  • 30. Figure 4: Income from the sale of CO2 emission allowances and expenses on their acquisition during 2008. Electricity market liberalization led to the entrance of three new units. Their parent companies were aware of the establishment of the ETS in advance, therefore, they had provided their subsidiary companies with combined cycle natural-gas units [8]. Hence, carbon dioxide emitted by them didn’t outnumber the quantity of emission allowances issued. 4.2 Other combustion installations sector The sector of other combustion installations, generally, presents limited CO2 emissions during 2008, compared respectively to those of the three-year period 2005-2007 [6]. www.witpress.com, ISSN 1743-3541 (on-line) WIT Transactions on Ecology and the Environment, Vol 131, © 2010 WIT Press Environmental Economics and Investment Assessment III 9
  • 31. Figure 5: Comparison between the average of indicators presenting the impact of the acquisition or sale of emission allowances on companies’ total turnover during 2005-2007 and 2008. www.witpress.com, ISSN 1743-3541 (on-line) WIT Transactions on Ecology and the Environment, Vol 131, © 2010 WIT Press 10 Environmental Economics and Investment Assessment III
  • 32. Figure 6: Comparison between the average of indicators presenting the impact of the acquisition or sale of emission allowances on companies’ profit before tax during 2005-2007 and 2008. www.witpress.com, ISSN 1743-3541 (on-line) WIT Transactions on Ecology and the Environment, Vol 131, © 2010 WIT Press Environmental Economics and Investment Assessment III 11
  • 33. The fact that the installations included in the second NAP are less than those included in the first one, brought about considerable emission reductions. Moreover, three installations malfunction and two others have already closed. Therefore, their quantity of emission allowances issued is not used. Furthermore, the biggest installation of this sector has stopped electricity generation activities that demanded non environmental friendly fuels. Instead, combined heat and power, using natural gas, was integrated in the company’s activities [9]. 4.3 Refineries The first refinery has progressively reduced its shortage of emission allowances during 2005-2007, as a result of implementation of Best Available Techniques (BAT) [10]. These actions contributed directly in surplus of CO2 emission allowances in 2008. Notwithstanding the above, the total allowances of the sector were increased comparatively to the quantity of emission allowances issued for the three-year period, due to an expansion of the installations of the sector’s second refinery. The expansion took place in 2006, but no additional allowances were allocated to the company. Thus, the quantity of CO2 emitted exceeded the quantity of emission allowances issued, which led to a big shortage of allowances. Therefore, a respectable amount of money was spent by the company, in order to cover its shortage. The assigned amount of emission allowances for the second refinery during the first period of commitment under the Protocol (2008-2012), was calculated on the basis of its historical emissions. Thereupon, it was increased in comparison to the amount of emission allowances of the previous period. Even though the shortage was diminished, the company still spent much money to tide over the shortage of CO2 emission allowances, as a consequence of high EUA prices during 2008 [5]. 4.4 Steel production sector The steel production installations have surplus of emission allowances throughout the period examined. The participating companies of this sector were aware of the establishment of the ETS. Taking into consideration the above, the companies had enough time to substitute HFO with natural gas and therefore reduce their carbon dioxide emissions [11]. Besides, the historical emissions, on which the assigned amount of emission allowances is based, were calculated while the installations were using HFO, a fuel that causes extremely high emissions of CO2. Wherefore, the fact that allocated emission allowances were far more than the allowances the companies really necessitated, had an enormously positive impact on their profitability. As far as the second NAP is concerned, substitution of HFO with natural gas was taken under consideration and as a result, allocated emission allowances were significantly less than the ones of the previous period. www.witpress.com, ISSN 1743-3541 (on-line) WIT Transactions on Ecology and the Environment, Vol 131, © 2010 WIT Press 12 Environmental Economics and Investment Assessment III
  • 34. 4.5 Construction sector The construction sector, on the whole, presents reduced CO2 emissions compared to those of the three-year period 2005-2007. The financial crisis led the sector to a slowdown, and as a result the demand diminished [12]. In consequence of the limited demand, there was a proportionally limited production which restrained CO2 emissions in low levels. Additionally, the staple of the installations included in the construction sector (cement clinker production installations, lime production installations, ceramic production installations) is limestone. Thereupon, all the relative installations have the ability to use limestone of low percentage of CO2 content and consequently reduce their emissions. 4.5.1 Cement clinker production sector Regarding the cement clinker production sector, especially during the three-year period 2005-2007, there is no remarkable variance between the quantity of emission allowances issued and the quantity of CO2 emitted. More specifically, the quantities of carbon dioxide emitted that are presented in the submitted verified emission reports, are slightly less than the allocated emission allowances, due to the following factors. First and foremost, the cement clinker production sector is characterized by stability. It is consisted of a small number of companies and as a result, demanded quantities of cement, which indicate the produced quantities of cement and consequently the quantity of CO2 emitted, are approximately stable from year to year. On account of that, historical emissions, on which calculations of the allocated emission allowances were based, suggest accurately the sector’s demand for emission allowances. On the other hand, participating companies of this sector, were beforehand aware of the establishment of the ETS and substituted fossil fuels with natural gas, which releases much less quantities of CO2 [11]. Particularly in 2008, Greek cement clinker production companies confirmed reduction of carbon dioxide emissions up to 5%. This reduction emanated from the slowdown of the construction sector, due to the recent financial crisis. In 2008, the three biggest cement associations acted according to their estimation that downturn would continue, and sold big amounts of allowances through international marketplaces, in order to support their economic situation [6]. 4.5.2 Lime and ceramic production sectors Remarkable similarities can be identified between the lime and ceramic production sectors. To begin with, none of the relative installations has renewed its equipment, or substituted fossil fuels with natural gas, since the establishment of the ETS. What is more, during the period 2005-2007, allocated emission allowances proved to be insufficient to cover the needs of the installations included in the NAP. Thus, the quantity of CO2 emitted exceeded the quantity of emission allowances issued, which led to a big shortage. As a consequence, the companies spent considerable amounts of money so as to tide over the shortage [12]. www.witpress.com, ISSN 1743-3541 (on-line) WIT Transactions on Ecology and the Environment, Vol 131, © 2010 WIT Press Environmental Economics and Investment Assessment III 13
  • 35. Under these circumstances, the second NAP allocated more emission allowances to the above companies for the period 2008-2012. However, the extra allowances that were at the companies’ disposal turned out to be needless, since their verified emission reports of 2008 present significantly reduced emissions of carbon dioxide, owing to two main factors. First of all, the financial crisis impacted on the construction sector, and by extension on the lime and cement clinker sectors, leading to their slowdown. As a result, the emerging CO2 emissions dropped [6]. Additionally, several companies adopted the policy of further reduction of their production, aiming at the creation of a surplus of allowances. The sale of the surplus of allowances enabled them to support their economic situation. 4.6 Paper production sector The paper production installations present slight differences between the quantity of emission allowances issued and the quantity of CO2 emitted. With regard to this sector, paper production is based exclusively on recycled paper, and not on wood pulp (wood pulp is usually bleached using calcium carbonate, in order to produce white paper product). Hence, CO2 emissions result only from combustion. During 2008, the decision several paper production installations made to replace outdated technology, led to reduction of carbon dioxide emissions [13]. Some of them, having access to natural gas pipelines, have substituted fossil fuels with natural gas. Others use LPG either exclusively or in the mix of fuels [11]. 5 Conclusions This paper reported the impact of the Emission Trading System on Greek companies’ profitability and its influence on their environmental policy. The ETS, being responsible for the emergence of a big shortage of allowances and by extension of money, has worsened the economic situation of the Greek Public Power Corporation. More accurately, it unquestionably presides over the 45% of the heavy loss the PPC announced in 2008. Yet, the company hasn’t taken sufficient measures to reduce CO2 emissions, and instead operates mainly lignite stations. Nevertheless, the other combustion installations and the paper production installations have remained almost unaffected. The first ones don’t exceed the quantity of emission allowances due to their malfunction or even closure. The majority of the second ones have substituted fossil fuels with environmental friendly fuels and replaced outdated technology. The sector of refineries was affected by the ETS, due to an expansion of one of the installations, during the first period examined, without being allocated additional emission allowances. Even when the second NAP took the expansion under consideration, CO2 emission allowance prices were so high that loss was unavoidable. The fact that the companies from cement clinker and steel production sectors were beforehand aware of the establishment of the ETS, in combination with the www.witpress.com, ISSN 1743-3541 (on-line) WIT Transactions on Ecology and the Environment, Vol 131, © 2010 WIT Press 14 Environmental Economics and Investment Assessment III
  • 36. financial crisis, led to limited CO2 emissions. As a result, they took advantage of the current situation, sold big amounts of allowances and increased their income. The lime and ceramic production sectors were, indubitably, most aided by the ETS. CO2 emission allowances became the needed source of income which helped them improve their economic situation, or even avoid their closure. Beyond shadow of doubt, the Emission Trading System has underlined the importance of using Best Available Techniques and substituting fossil fuels with environmental friendly ones, like natural gas. To sum up, the Kyoto Protocol, despite its apparent flaws in its current form, is the first international environmental agreement that sets legally binding GHG emissions targets and timetables for Annex I countries. If properly designed, emission trading scheme can effectively reduce their abatement costs while assisting Annex I countries in achieving their Kyoto obligations and assuring their economic viability. References [1] Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance. Trading within the Community and amending Council Directive 96/61/EC. [2] Sioulas K., Applying Emissions Trading Mechanisms in Greece, CRES, pp. 7, 2006. [3] Ministry of Environment, Energy and Climate Change, National Allocation Plan for the period 2005-2007, pp. 19-26, 2004. [4] Ministry of Environment, Energy and Climate Change, National Allocation Plan for the period 2008-2012, pp. 6- 9, 2008. [5] European Climate Exchange, www.ecx.eu [6] Kourniotis S., Tsouma M., Sellas N., Loukatos A., Gargoulas N. & Koryzi K., Verified emission reports of 2008 & Energy saving in businesses. CO2NTROL info, EPEM, 13, pp. 6-14, 2009. [7] Regulatory Authority for Energy, www.rae.gr [8] Kourniotis S., Loukatos A., Gargoulas N., Mentzis A., Sitara A. & Makrinou K., 2nd Report concerning the establishment of the Emission Trading System. CO2ntrol info, EPEM, 2, pp. 12-13, 2006. [9] Ministry of Development, Energy Outlook of Greece, pp. 63-68, 2009 [10] Hellenic Network for Corporate Social Responsibility, www.csrhellas.org [11] Kourniotis S., Loukatos A., Gargoulas N., Sellas N., Sitara A., Mentzis A.& Makrinou K., Report of CO2 emission allowances. CO2NTROL info, EPEM, 6, pp. 10, 2007. [12] Construction activity as a parameter of economic development and the consequences of the economic crisis on it (Initiative Opinion); Economic and Social Council of Greece, Opinions, 225. http://www.oke.gr/ oke_pron_pdf_en.html [13] National Centre for the Environment and Sustainable Development, http://www.ekpaa.greekregistry.eu/ www.witpress.com, ISSN 1743-3541 (on-line) WIT Transactions on Ecology and the Environment, Vol 131, © 2010 WIT Press Environmental Economics and Investment Assessment III 15
  • 38. Infrastructure and ecology: ‘limited’ costs may hide substantial impacts E. J. Bos1 & J. M. Vleugel2 1 LEI Wageningen University and Research Centre, The Netherlands 2 OTB Research Institute, TU Delft, The Netherlands Abstract In response to a growing demand for transport and changes in the way people use space, the nature of road infrastructure networks change: (small) roads are frequently transformed into highways. Before such expansions are realized, in many cases a legal obligation exists to carry out a cost-benefit analysis (CBA) in order to assess whether the expansion scheme creates a net social benefit for society. A CBA deals with the effects on the surrounding ecosystem, the environment and human living. This paper focuses on the valuation of the biotic, a-biotic and socio-economic damage, thereby contributing to the methodology of CBA as a tool to evaluate infrastructural plans integrally. Keywords: infrastructure, ecological effects, environmental effects, economic valuation and CBA. 1 Introduction Cost-benefit analysis (CBA) has become an important tool to support policy making on public investments in infrastructure. Here we will focus on assessing the external effects of infrastructure in economic terms. More specifically, we will value the ecological and environmental effects of transforming an existing motorway into a highway. The set-up of the paper is as follows. Section 2 starts with an introduction into CBA. Section 3 continues with an assessment of the ecological, environmental and socio-economic impacts of the highway plan, followed by the economic valuation of these impacts. Then an alternative plan to reroute the highway will be discussed briefly. Section 4 follows with an evaluation of the previous analysis. In section 5 the main conclusions and recommendations can be found. www.witpress.com, ISSN 1743-3541 (on-line) WIT Transactions on Ecology and the Environment, Vol 131, © 2010 WIT Press Environmental Economics and Investment Assessment III 17 doi:10.2495/EEIA100021
  • 39. 2 Methodology Cost Benefit Analysis (CBA) is a well-known tool to support policy makers in making decisions about public investments in infrastructure- and other projects. In this study, we undertook an extensive review of existing ecological and environmental studies in order to determine the physical impacts of a highway on nature and the environment. This provided a set of parameters. We combined these parameters with data from the plan in order to determine the quantitative impacts of the plan. The translation of these impacts in monetary terms, better known as economic valuation, is the last step to determine the social costs and benefits of the project. It contains uncertain elements, in particular regarding ecological effects [1]. There is also no straightforward, simple and integrative method to value ecological, environmental and socio-economic impacts, instead we combined different valuation methods in the assessment. To some extent this meant navigating at the edge of present knowledge, hence the indicative nature of our final results. 3 The plan for the highway and its impacts 3.1 Introduction Kresna Gorge is a small area (17 km in length) located north of the Bulgarian town of Kresna in the southeast part of Bulgaria near the Greek border. Located on the border of the continental and Mediterranean climate zones, the gorge contains a unique ecosystem with a high biodiversity and rare animals and plants: a corridor for mammals and birds. Nearly 5%, including the most valuable habitats, belongs to the protected Tissata Reserve. The gorge is declared as a CORINE site (Bern Convention) and will become part of the European Ecological Network Emerald and Natura 2000. Part of the gorge is also defined as an important area according to Bird Life Figure 1: Kresna Gorge in Bulgaria [2, 3]. www.witpress.com, ISSN 1743-3541 (on-line) WIT Transactions on Ecology and the Environment, Vol 131, © 2010 WIT Press 18 Environmental Economics and Investment Assessment III
  • 40. International criteria. Bulgarian environmentalists aim to turn the whole Kresna Gorge into a protected area. It could be linked with FYROM’s nature areas as a Transborder Nature Park [4]. 3.2 The existing motorway The gorge and Kresna town are divided by the nine meter wide international road between Sofia and Athens (Figure 2). Traffic on this road kills hundreds of animals, such as (rare) snakes, polecats, tortoises, bats and otters, during their daily migration to the Struma River [4, 5]. 3.3 The plan for the highway Since 1997, a plan by the Bulgarian government did exist to replace the existing 2x1 lane motorway by a 2x2 lane (plus emergency lanes) E-79 highway. The European Union financially supports infrastructure projects of international importance by its Trans European Network (TEN) policy. The E-79 is part of Priority Project N° 7 (Igoumenitsa/Patra–Athina–Sofia–Budapest). An evaluation says [6, p. 18]: “Bulgaria intends to invest a major part of its Cohesion Fund 2007-2013 on the motorway route Sofia–Kulata (the Struma motorway). However, serious environmental constraints could lead to delays on a 56 km section at the "Kresna Gorge''. These ‘constraints’ refer to the highway dissecting the Kresna Gorge and passing the edges of Kresna town at 30 meters. 3.4 The physical impact of the highway When in use, the highway will produce a range of ecological, environmental and economic effects [4], which will be described here. Besides these external costs, the cost of building the highway is € 1.2 billion [7]. 3.4.1 Ecological (biotic) impact The presence of a road alters hydrological dynamics, disrupts natural processes and habitats, but may also create new habitat edges. The assessment was Figure 2: The barrier effect of a road. Source: [8]. www.witpress.com, ISSN 1743-3541 (on-line) WIT Transactions on Ecology and the Environment, Vol 131, © 2010 WIT Press Environmental Economics and Investment Assessment III 19
  • 41. restricted to fauna. The first impact is the barrier effect. Traffic imposes dispersal and migration range barriers to most non-flying terrestrial animals and causes death while crossing the road [8]. The barrier effect is a combination of disturbance and avoidance effects, physical hindrances and traffic mortality, together reducing the number of movements across the barrier (Figure 2). The barrier effect is a non-linear function of [10]: - traffic intensity: from 6.000-8.342 per 24 hours in the current situation to 17.200 in case the highway would be built; - average vehicle speed: from 70 to 90 km/h; - road width: from 9 to at least 25 m; - roadside characteristics: more hard elements; - type of species, behavior, sensitivity to disturbances. When the traffic intensity would increase if the current road would be replaced by the highway, the road would become an absolute barrier to cross for some animals, as Table 1 shows. In that case the animal species cannot cross the barrier and populations on each side of the road become isolated. When, as a consequence, habitats on each side of the rode become too small (see Figure 3) the specie will become extinct in the area. Many mammals will not be able to pass the road. Birds are also less likely to fly over the road. We assume an increase of the barrier effect by a few percentages. Table 1: Barrier-effect of roads: traffic intensity values where roads become absolute barriers to cross. Species Traffic intensity (vehicles/day) Lizard, viper, reddish vole Northern vole, squirrel Marten, badger, roe-deer, fox Red deer, swine, otter 2.000 3.500 12.000 15.000 Source: [9]. Figure 3: The relation between the number of species and the surface of an area (y: number of species, x: area in km2 ). Source: [9]. www.witpress.com, ISSN 1743-3541 (on-line) WIT Transactions on Ecology and the Environment, Vol 131, © 2010 WIT Press 20 Environmental Economics and Investment Assessment III
  • 42. Disturbance. When the average vehicle speed increases by 10 km/h and the traffic intensity increases as expected, the area affected increases by 44 m [11]. If we take the change in bird densities as an indication for the increased disturbance of the ecosystem, then the disturbed area will increase by 74.8 ha. Mortality effect. The number of road kills generally increases with traffic intensity. High mortality will occur among amphibians and mammals, especially bear and wolf. Next to this insects, birds and bats are also affected [8]. We expect an increase by a few percentages. Habitat loss. The net loss of wildlife habitat would be at least 27,2 ha ([25 – 9] x 17 km). If the highway is constructed in the narrow bed of the gorge, most of the current natural habitats along the Struma River will be destroyed. Artificial lightning. This effect is not easy to quantify, but we assume the spatial burden to be limited to the direct surroundings of the highway. Depending on the number of successful crossings relative to the size of the population, the barrier effect may affect the populations of species. If the exchange of individuals is further reduced but not completely inhibited, the populations may diverge in characteristics such as density, sex ratio, birth and mortality rate. Also genetic differences may emerge, as the chance for mating with individuals from the other side of the road barrier is reduced. Fragmentation may lead to inbreeding witness studies on rodents and amphibians. A barrier becomes absolute for a species when crossings stop. If isolated areas become too small to live for a certain species, then it becomes extinct in the region [9]. Table 2: Ecological impacts of the highway. Effects Variable (# of) / Barrier effect Unsuccessful crossings ± 5%  Disturbance effect Ecologically disturbed area 74.8 ha  Mortality effect Kills per unit of time ± 5%  Habitat loss Destroyed habitat > 27.2 ha  Artificial lightning Disorientation, fixation  While many species will disappear, some may benefit. For instance, road verges can be beneficial to animals and plants, depending on the type of roads. Quiet roads with little traffic are expected to be more beneficial than highways. 3.4.2 Environmental (a-biotic) impact The first effect concerns disruption of natural processes. Quantification of this effect is difficult, however. Air contamination. Examination of sensitive organisms demonstrates that the current road affects the slopes along the Struma River up to 2 km away. Higher traffic intensities may be balanced by less congestion. We assume a certain increase in contamination due to the highway. Adverse effects from construction, maintenance and use of the road. The size of the affected area is likely to increase. www.witpress.com, ISSN 1743-3541 (on-line) WIT Transactions on Ecology and the Environment, Vol 131, © 2010 WIT Press Environmental Economics and Investment Assessment III 21
  • 43. 3.4.3 Impact on size and nature of recreation Several (eco-)activities are under development. A visually less attractive and noisy landscape will attract less visitors. A relatively comparable case is the reactivation of the Dutch section of the Iron Rhine railway [12]. From it we estimate the number of recreational visits to fall by more than 10 per cent. Table 3: Environmental impacts of the highway. Effects Variable (# of) / Disruption of natural processes (ground water etc.)  Air pollution Mg/ltr air  Adverse effects from construction, maintenance, use of the road  Table 4: Recreational impacts of the highway. Effects Variable (# of) / Less attractive recreational environment Recreational visits Region: ↓10% 1) Nation:  0 Note: 1) Very indicative. Eco-tourism will be affected, because the Struma river is a favorite area, as is the large Melo Sand Hill near Kresna town. Table 5: Socio-economic impact. Effects Variable (# of) / Income and wealth Decrease of agricultural land, accessibility 0/ 1) Human health Pollution of air, soil, water  Risk for drivers and trespassers  2) Noise disturbance to humans  3) Notes: 1) 0 if the road is built in the nature area only, else a decrease. Junctions would improve accessibility, but they are not planned. 2) No secondary road or (level) crossings are planned. Tractors and horse drawn carts are mainly used by farmers. Accidents with larger animals at high speed will be more frequent and more dangerous. 3) The road is very close to the town of Kresna. The value of houses will be reduced. www.witpress.com, ISSN 1743-3541 (on-line) WIT Transactions on Ecology and the Environment, Vol 131, © 2010 WIT Press 22 Environmental Economics and Investment Assessment III
  • 44. 3.4.4 Socio-economic effects To be mentioned are the following impacts: Agriculture. We assume that the highway will be built mainly in the nature area. Health effects. Exposure to aerosols is accounted for earlier deaths of thousands of people each year [13]. Risk for drivers. Police records in Europe (excl. Russia) suggest at least 0.5 m. ungulate-vehicle collisions per year, or at least 300 human fatalities, 30.000 injuries, and material damage of more than US$ 1 bn. [8] The gorge inhabits large mammals like bear, wolf and deer. Noise disturbance. Long term exposure to noise can induce psychological stress and eventually lead to physiological disorder. 3.5 Economic evaluation Ecological and environmental impacts are not revealed by market prices as they concern nonuse values. We used a set of methods best fitting to the purpose. Barrier effect. Method: avoidance cost. We assume two ecoducts of 60m length, 30m width and 5m height with a cost of 2 x 1.7 million [14]. Disturbance effect. Method: avoidance cost. Noise shields cost approximately € 60.000 for a shield of 3 m high and 150 m long [15].When applied to the 17 km E-79 the cost would be 2*(17.000/150)* €60.000 = € 13.6 m. Habitat loss. Method: Restoration cost. € 272.000. Artificial lightning. Method: avoidance cost. Adapting artificial lightning (by limiting direction and amount of light, adaptation to traffic intensity, etc.). Investment cost of approximately € 80,000 per km of road [15]. When applied to the 17 km E-79 the total costs would be 80.000*17 = € 1.36 m. Environmental effects. The appropriate method would be CVM. No data were available, hence we used a pro memorie (PM) as proxy. Impact on recreation (use values). Methods: Market valuation, travel cost. Impact on recreational spending will be negligible if we assume substitution on a national scale. The welfare loss is due to the decreased recreational value of the sites, hence shift of travel to other sites. No data is available, hence a PM. Socio-economic effects. We assume a negligible impact on agriculture. Human health will be affected. Air pollution could best be valued by hedonic pricing, as no data is available we apply PM. Noise disturbance and risks for drivers are included in the disturbance of the ecosystem. Total cost: € 3.4 m. + € 13.6 m. + € 0.272 m. + € 1.36 m. + PM = > € 18.7 m. 3.6 An alternative An alternative route via the Pirin Mountain could prevent all the negative effects. Its impact will be much less than the existing road, which will then be converted into a disclosure route for inhabitants and tourists [5]. EU’s environmental regulators can play a vital role in protecting this valuable area against strong economic interests [6]. www.witpress.com, ISSN 1743-3541 (on-line) WIT Transactions on Ecology and the Environment, Vol 131, © 2010 WIT Press Environmental Economics and Investment Assessment III 23
  • 45. Figure 4: Map of the Kresna Gorge with eastern bypass. Source: [4]. 4 Evaluation In this paper we presented the results of a study into the impact of road extension on a rather unique and irreplaceable nature area. The importance of this paper lies in the depth of the ecological analysis and valuation on the one hand and the combination of several valuation methods on the other hand. CBA studies tend to concentrate on issues like noise, air pollution, use of space and socio-economic impact. This study went much further. By combining biotic, a-biotic and socio- economic impacts it was possible to give a relatively complete overview of the impacts of the highway. This way of analyzing gives clues to interesting areas for further research, in particular into ecological and environmental impacts of infrastructure. The valuation of the external costs of the highway shows a relatively small value of € 18.7 m. This is due to a number of factors: - valuation problems, which lead to an incomplete dataset (PM); - the prime use of the cost avoidance method, which is a valuation from a human perspective. www.witpress.com, ISSN 1743-3541 (on-line) WIT Transactions on Ecology and the Environment, Vol 131, © 2010 WIT Press 24 Environmental Economics and Investment Assessment III
  • 46. The impact of the existing road is already considerable. The impact of the highway is therefore attenuated. A more cost-intensive in depth study should be undertaken in the gorge in order to remove the PM’s from the cost calculation. 5 Conclusions and recommendations A few methodological observations can be made. First, infrastructure projects in nature areas particularly affect nonuse values. Second, avoidance and restoration costs methods are most useful when valuing adverse ecological effects in economic terms. These methods are not based on consumer preferences (wtp), but on observed market prices. These methods can be used to value effects that have been mitigated elsewhere. An issue for further research is to focus on effects where avoidance cost based data are not available. For such effects contingent valuation could be applied in order to get an indication of the size of these effects in reference to other costs and benefits. A recommendation for policy making is to include effects on surrounding nature areas into the CBA for infrastructure. From our study it is clear that such effects can no longer be omitted from an integral evaluation. By building infrastructure in nature areas, we threaten the existence of very unique, complex and irreplaceable ecosystems. Unlike built-up areas, which can ‘bounch back’ after a road is ready, such ecosystems do not recover after the road is finished. The best advice would therefore be to stay out of such areas wherever possible. This is what nature protection is meant to do. To improve the present situation while taking care of the needs of increased (international) traffic and the economy, this highway should be built elsewhere. References [1] Vleugel, J.M., and E.J. Bos, 2008, Ways to deal with the ‘temporary value of cost benefit analyses, in: K. Aravossis, C.A. Brebbia and N. Gomez (eds.), Environmental Economics and Investment Assessment II, Wessex Institute of Technology, Ashurst, UK, pp. 171-180. [2] Nikolov, S. and S. Spasov, 2005, Frequency, density and numbers of some breeding birds in the south part of Kresna Gorge (SW Bulgaria), Acrocephalus 26 (124), pp. 23–31. [3] http://www.kresna.org/index_en.php.;~/motorway_en.php; ~/gallery_en.php, ~/alternative_en.php. [4] Bos. E.J, 2008, Valuation of Ecological Networks - Case study Kresna Gorge Bulgaria, Alterra and LEI Working Report 1896, Wageningen. [5] http://www.kresna.org/index_en.php and inked pages on the website. [6] EU DG TREN, 2008, TEN – T Trans-European Transport Network, Implementation of Priority Projects Progress Report, May 2008, Brussels. [7] http://en.wikipedia.org/wiki/Struma_motorway. [8] Seiler, A., 2001, Ecological Effect of Roads: a Review. SLU, Uppsala. www.witpress.com, ISSN 1743-3541 (on-line) WIT Transactions on Ecology and the Environment, Vol 131, © 2010 WIT Press Environmental Economics and Investment Assessment III 25
  • 47. [9] Pouwels, R., R. Jochem, M.J.S.M. Reijnen, S.R. Hensen and J.G.M. van der Greft, 2002, LARCH voor ruimtelijk ecologische beoordelingen van landschappen, Alterra, rapport 492, Wageningen. [10] Berthoud, G., 2002, Construction of a Motorway in the Gorge of Kresna Corridor Connection Bulgaria – Greece: Motorway E79: Sofia-Kulata. Report of the on-the-spot appraisal. Standing Committee 22nd meeting Strasbourg, 2-5 December 2002. [11] Reijnen, M.J.S.M., G. Veenbaas and R. Foppen, 1992, Het voorspellen van het effect van snelverkeer op broedvogelpopulaties. DWW-rapport, Rijkswaterstaat Delft/IBN-DLO, Wageningen. [12] Konijnenburg, P. van, J. Kortman, J. Jantzen and H. van der Woerd (2001). Effecten van Reactivering van de IJzeren Rijn: Onderzoek naar de Effecten van Reactivering van de IJzeren Rijn op de Functies Recreëren, Wonen en Werken, IVAM, Amsterdam. [13] Slanina, S. and W. Davis, 2008, "Impact of local air pollution.", in: Encyclopedia of Earth, C.J. Cleveland (ed.), Environmental Information Coalition, National Council for Science and the Environment, Washington, D.C. [14] Vanya Simenova, personal information from Bulgaria. [15] Rijkswaterstaat, Dienst Weg- en Waterbouwkunde, 2002. Effecten en kosten van leefbaarheidsmaatregelen, Den Haag. www.witpress.com, ISSN 1743-3541 (on-line) WIT Transactions on Ecology and the Environment, Vol 131, © 2010 WIT Press 26 Environmental Economics and Investment Assessment III
  • 48. Implementation of the polluter pays principle – example of planning for decommissioning S. Lindskog1 & R. Sjöblom2 1 The Swedish Radiation Safety Authority, Sweden 2 Tekedo AB, Sweden Abstract The Swedish Radiation Protection Authority (SSM) and some of its predecessors have since the late nineteen seventies overseen the Swedish system of finance for decommissioning and waste management of nuclear facilities. This system contains segregated funds for the costs according to best estimate and securities to cover uncertainty. Recently, the underlying legislation was extended to also include various small facilities with sometimes small businesses as owners, and the Government authorized the SSM to issue regulations as warranted and appropriate. The implementation of the new legislation includes the challenges of simultaneously honouring the polluter pays principle and the principle of equity between the generations whilst at the same time complying with the requirements on proportionality as well as harmony with other legislation. Surveys have therefore been conducted regarding similar solutions in other areas as well as statements in other legislations, and the results are briefly summarized in the present paper. Previous supporting work includes analyses of planning for decommissioning and cost calculation methodologies. It is found that the estimated cost, prepared in accordance with the state of the art, can form the basis for the selection of means for financial assurance. Thus, exemption can be recommended for liabilities up to k€ 2,4, securities alone up to M€ 0,1, and securities in combination with segregated funds above this level. It is commented that some ombudsman type of organisation is required to safeguard the interests of future generations with regard to environmental liabilities, and that advice may be received from the younger generation. Keywords: decommissioning, nuclear, fund, security, Sweden, legislation, polluter pays principle. www.witpress.com, ISSN 1743-3541 (on-line) WIT Transactions on Ecology and the Environment, Vol 131, © 2010 WIT Press Environmental Economics and Investment Assessment III 27 doi:10.2495/EEIA100031
  • 49. 1 Definitions There are three levels of legislation in Sweden: Legislation Issued by Compliance with Authorized by Law Parliament Constitution Swedish people Ordinance Government Laws Parliament Regulation Competent Authority* Laws and Ordinances Government * Such as the Swedish Radiation Safety Authority. Laws, ordinances and regulations are legally binding and the compliance of them is overseen and assured by our legal system, including our courts. In addition, a Competent Authority can issue general advice with regard to a certain regulation. It can contain clarification as to what the actual regulation is intended to mean and may also provide examples. General advice is not legally binding and compliance must not necessarily be upheld in a court decision. Competent Authorities – like everybody else, e.g. a branch organization – can also issue guidance documents. They reflect good practice, but cannot necessarily be relied on for compliance with legislation. In this paper, the Swedish Radiation Safety Authority (in Swedish: Strålsäkerhetsmyndigheten) is referred to by its abbreviated name, SSM. This paper refers to work in progress. Any conclusions represent the views of the authors. 2 Introduction 2.1 Implementation of environmental legislation The last few decades have meant a shift of paradigm in that basic principles have been established and policies agreed on a number of environmental issues including protection of health and environment, conservation, re-cycling, sustainable development, remediation, use of best available technology, equity between generations and the polluter pays principle (PPP), also known as the Extended Polluter Responsibility (EPR). Associated legislation has been issued and enforced. Releases to the environment – e.g. as fly ash and sulphur dioxide – have plummeted. The success rate is very varied, however, and the following was written [1] in 1997 by Staffan Westerlund, professor of environmental law at the University of Uppsala (translation from Swedish by the present authors): “It is well known that environmental laws seldom function well and that environmental goals are usually not achieved. We have also become accustomed to an almost total inefficiency of regulations intended to alter environmentally inappropriate behaviour. It does not come as a surprise that concrete rules … still 25 years after having come into force have not been implemented and enforced. Over the years, there have been so many incidences of malfunctioning of the environmental legal system that we who teach law must make a quite clear www.witpress.com, ISSN 1743-3541 (on-line) WIT Transactions on Ecology and the Environment, Vol 131, © 2010 WIT Press 28 Environmental Economics and Investment Assessment III
  • 50. Other documents randomly have different content
  • 51. San Sebastian Church, Manila An exhibition of an Igorot village at the St. Louis World’s Fair of 1904 probably spread in America more of the notion of the Philippines as an untamed wilderness than tons of statistics could correct. These, then, were the people America had undertaken to govern—wild, naked creatures, beside whom the North American Indian was a gentleman and a scholar!
  • 52. Non- Christian population Literacy Facts of Filipino Attainment s in Pre- Spanish Days Indeed, a long time must elapse before you can reduce these to suspenders and beefsteaks. A long time? Why, centuries and centuries! Again, to the assiduous readers of press dispatches, the typical Filipino has come to mean the fierce Mohammedan Moro; although, there are in the Islands less than 400,000 Mohammedans of all kinds, whether fierce or urbane. Still others have concluded that the wild-eyed nomad of the mountains, the man with the bow and arrow, with no religion at all, must be the determining factor of the situation because there are so many of his kind; and yet the census reveals the total number of persons in all the Islands that do not profess either Christianity, Mohammedanism, or Buddhism as only 102,000. So, too, the ignorance of the Filipinos has always been believed to be appalling and a bulwark of darkness not to be overcome in generations, if ever; and yet the census reveals the percentage of literacy in the entire Islands at 49.2 per cent. The percentage compares favorably with the literacy of many of the small independent nations of the world at present. The facts are these, as regards the Filipinos even in Pre-Spanish days: The Spaniards found that the inhabitants of the Islands built and lived in planned houses, had a machinery of government of their own, maintained a system of jurisprudence, in many cases dwelt in ordered cities and towns and practised the arts familiar to the most advanced peoples of their times. Gunpowder they knew and used before 1300, when it had not yet been introduced in Europe; and they made firearms that astonished the Spaniards. At the siege of Manila, 1570, the natives defended their city with cannon, and the conquerors found within the walls the factory where these guns had been forged, as well equipped and ordered as any abroad. The Islanders were expert in other metal-working, skilful ship-builders, able carpenters. Copper they had worked; but bronze, of which their great guns
  • 53. Religion, alphabet, and books were made, they imported from China. Some of their art in silver-work excites admiration even now, for their beautiful design and fine workmanship. They wove cloths of cotton, hemp, and other fibers. They were, in fact, inheritors of two great cultural infiltrations upon what original culture the Malays had two thousand years before: on one side, was the influence of the Hindus and on the other the civilization of the Chinese, and to these had been added, years before the Spaniards came, stray gleams of information transmitted roundabout from Europe. All this is inconsistent with the fanciful theory of the head- hunter and the wild man of the woods, but is nevertheless the incontestable record. Heathen they were called, but they had a religion, and a code of morals, not at all contemptible. They were natural musicians, possessed a variety of musical instruments, and had native orchestras. They were fond of poetry and and honored their poets. They had also a written alphabet and they wrote books. Every settled town had a temple and most temples had collections of books. They were written in the native characters on palm leaves and bamboo, and stored with the native priests. The subjects were historical and legendary, folk-lore tales, statutes, deeds of heroism and poems. The Spanish enthusiasts burned these books as anti-Christian and thereby destroyed documents priceless to succeeding ages, the few that escaped the flames testifying poignantly to the great loss. A small collection of them was recently discovered in a cave in the Island of Negros and ethnologists have hopes of others that may have escaped the sharp eyes of the destructors. Professor Beyer, whose investigations of early Filipino life and history have been so extensive, has come upon other evidence of early Filipino letters, including an epic poem of considerable length; but this exists now only in the memories of the reciters. The four-thousand-odd lines of it that Professor Beyer has translated show a rare gift of versification and imagery. Of the written alphabets in use before the coming of the Spaniards, fourteen were of Malay origin, one was Arabic, and one Hebrew. Of the Malayan alphabets many were structurally alike, so that a learned Visayan must have
  • 54. Traders and artisans Able Agriculturi sts been able to make out Tagalog words and a Pampangan to spell Ilocano. We are not to imagine that every Filipino could read the written speech; there were in the Islands at that time, as in India, Spain, England, and elsewhere, the educated and the uneducated. But it seems likely that the percentage of literacy in the Philippines, about the year 1500, let us say, was as large as in Spain, larger than in India and compared favorably with the percentage in other places. The inhabitants were able traders as well as skilful artisans. Manila was one of the great commercial centers of the East and long had been so; it was not a mere collection of fishermen’s huts. When the inhabitants of England were wearing skins, painting their bodies, and gashing their flesh in religious frenzies, the Filipinos were already conducting commercial marts in which were offered silks, brocades, cotton and other cloths, household furniture, precious stones, gold and gold dust, jewelry, wheat from Japan, weapons, works of art and of utility in many metals, cultivated fruits, domesticated animals, earthenware, and a variety of agricultural products from their rich volcanic soil. The people understood how to make agricultural implements which, if crude by present standards, were nevertheless serviceable. They knew how to make machines, to hull and separate rice, to express oil from coconuts, and to weave their cloths. They worked out their own problems of irrigation and in their own way. The huge rice terraces in some parts of Luzon were and still are the wonder of all beholders. “I know of no more impressive examples of primitive engineering,” says Dean C. Worcester, “than the terraced mountain-sides of Nueva Vizcaya beside which the terraced hills of Japan sink into insignificance.” WRITTEN AND UNWRITTEN LAWS.—The people had both written and unwritten laws. They were made and promulgated by the chiefs after consultation with the elders, and were “observed with so great exactness that it was not considered possible to break them in any circumstance.”
  • 55. The laws covered many of the subjects which are common in modern times. A few of the most striking points were: Respect of parents and elders, carried to so great a degree that not even the name of one’s father could pass the lips, in the same way as the Hebrews regarded the name of God. Even after reaching manhood and even after marriage, the son was under a strict obligation to obey his father and mother. Marriage had reached the stage of mutual consent. Marriage ceremonies approaching the religious were elaborate, according to rank. Husband and wife were equal socially and in the control of their property. Property was acquired principally by occupation, but also by gift, purchase, and succession. Wills were sometimes made. Contracts were strictly fulfilled. The Chinese writer, Wang Ta-yuan; in a book of 1349 says: “The natives and the traders having agreed on prices, they let the former carry off the goods and later on they bring the amount of native products agreed upon. The traders trust them, for they never fail to keep their bargains.” In fact, non-performance of a contract was severely punished. Partnerships were formed and the respective obligations of the partners enforced. The Code of Calantiao.—The penal law was the most extensive. Penalties were severe, altho compared with present laws, they appear cruel and illogical. However, they compared favorably with Greek and Roman laws as well as with the contemporary Spanish and English criminal laws. Calantiao, the third chief of Panay, had, in 1433, promulgated a penal code. It ran as follows: “Ye shall not kill; neither shall ye steal; neither shall ye do harm to the aged; lest ye incur the danger of death. All those who infringe this order shall be condemned to death by being drowned with stones in the river, or in boiling water. “Ye shall obey. Let all your debts with the headmen (principales) be met punctually. He who does not obey shall receive for the first offense one hundred lashes. If the debt is large, he shall be condemned to thrust his hand thrice into boiling water. For the second offense, he shall be condemned to be beaten to death. “Observe and obey ye: let no one disturb the quiet of graves. When passing by the caves and trees where they are, give respect to them.
  • 56. Testimonies of Occidental Writers “Ye shall obey: he who makes exchange for food, let it be always done in accordance with his word. He who does not comply, shall be beaten for one hour, he who repeats the offense shall be exposed for one day among ants. “They shall be burned: Those who by their strength or cunning have mocked at and escaped punishment; or who have killed young boys; or try to steal away the women of agorangs (rich men). “Those shall be killed who profane sites where idols are kept, and sites where are buried the sacred things of their diuatas (spirits) and headmen.” All which bespeak a culture of no mean order, and occidental writers themselves have given it the credit that it deserves, as shown by the following testimonies: “They had already reached a considerable degree of civilization at the time of the Spanish conquest.”—Professor Ferdinand Blumentritt. “The inhabitants of these Islands were by no means savages, entirely unreclaimed from barbarism, before the Spanish advent in the sixteenth century. They had a culture of their own.”—John Foreman. “The inhabitants of the Philippines possessed a culture of their own prior to the coming of the Spaniards to the Islands. Those along the coasts were the most advanced in civilization. Their material wealth was considerable. The chief occupations were agriculture, fishing, weaving, some manufacturing, and trade both inter-island and with the mainland, generally in the form of barter. They were expert navigators. They used standard weights and measures. The year was divided into twelve lunar months. They had a peculiar phonetic alphabet, wrote upon leaves, and had a primitive literature. The majority of the people are said to have been able to read and write.”—Justice George A. Malcolm. “The inhabitants practise various kinds of industry; they weave matting of extraordinary fineness and of the brightest colors, straw hats, cigar-cases and baskets; they manufacture cloth and tissues of every sort from leaves of the aguana, make cambric of a texture much finer than that of France; and they also manufacture coarse strong cloth for sails, etc.; and ropes and cables of all dimensions; they tan and dress leather and skins to perfection; they manufacture coarse earthenware and forge and polish arms of various kinds; they build ships of heavy tonnage and also light and neat boats, and at Manila they frame and finish off beautiful carriages; they are also very clever workers in gold and silver and
  • 57. Schools and Colleges copper; and the Indian (Filipino) women are especially expert in needlework and in all kinds of embroidery.” (Twenty years in the Philippines, pp. 304, 307.) PROGRESS DURING SPANISH RULE.—The Spanish rule in the Philippines lasted 350 years. The Spanish Crown meant well, but the way her policies were translated into deeds was all but desirable. The best men could not be induced to go to Manila. The Church wielded tremendous power, and at times was more powerful than the government itself. Each village was under the rule of a priest. Character was stifled; progress was deliberately discouraged; independence of thought stamped out. It would be doing Spain a great injustice, however, if no credit whatever is given her rule in the Philippine Islands. She introduced Christianity into the Islands and unequivocably converted the inhabitants to the creed, thus setting up the only Christian country in this part of the globe with a Christian outlook on life; in the women, particularly, the tenets of Christianity instilled dignity and it freed them from Hindu and Mohammedan degradations. Efforts were also taken to teach the people the rudiments of education. Access was thus given to the splendid tongue of Castile, and, thru that, to all the glories and traditions of Latin civilization. As early as 1866, for a population of 4,000,000 people, there were 841 schools for boys and 833 for girls. In 1892, six years before the coming of the Americans, there were 2,137 schools. There were also colleges and universities where professional training was given. The colleges were: University of Santo Tomas, Manila, established in 1611 (twenty-five years older than Harvard); San Juan de Letran, Municipal Athenaeum, Normal School, College of San Jose, the Nautical School, the School of Commercial Accounting, the Academy of Painting and Drawing, and many other private schools, fourteen of which were in Manila. There were also seminaries in Manila, Nueva Segovia, Cebu, Jaro, and Nueva Caceres, where all branches of secondary instruction were taught in addition to those prescribed for the priesthood.
  • 58. Filipino Record Abroad Many of the prominent Filipinos in Philippine history, as stated above, including the national hero, Jose Rizal, had their first instructions in these schools established by Spain. A number of the ambitious students were sent by their parents to complete their education in Spain, France, England, Belgium, and Germany. Groups of these young men took part in the various liberal movements of nineteenth century Europe. They wrote and spoke in behalf of liberal institutions for the Islands, in terms that would have cost them their lives in the Philippines; in fact, Rizal was put to death upon his return to his native land. Several of these young Filipinos even rose to eminence in the public service, a right which was denied them at home except in a few cases in the minor judiciary. In the eighties and nineties, a group of them of which Rizal, Juan Luna, Resurrección Hidalgo, M. H. del Pilar, Lopez Jaena, Pedro A. Paterno, and Dr. Pardo de Tavera were the leading spirits—made a deep impression in the literary and artistic circles of Madrid, Paris, and Berlin. A newspaper was founded by them in Madrid to further their political views. Although proscribed in the Philippines, their books and articles were circulated secretly in the Islands and helped to arouse the people and to consolidate the growing unrest. Opinions of Foreign Authors.—On Spain’s achievements in the Philippines, foreign authors have been considerate. The famous French explorer of the Pacific, for example, La Perouse, who was in Manila in 1787, wrote: “Three million people inhabit these different islands, and that of Luzon contains nearly a third of them. These people seem to me no way inferior to those of Europe; they cultivate the soil with intelligence, they are carpenters, cabinet- makers, smiths, jewelers, weavers masons, etc. I have gone through their villages and I have found them kind, hospitable, and affable.” (“Voyage de la Perouse autour du Monde,” Paris, 1787, II, p. 347.) “Almost every other country of the (Malay or Indian) Archipelago is, at this day, in point of wealth, power, and civilization, in a worse state than when Europeans connected themselves with them three centuries back. The Philippines alone have improved in civilization, wealth, and populousness. (“History of the Indian
  • 59. The Backgroun d on Which America Had Built Archipelago,” by John Crawford, F. R. S. Edinburgh, 1820, Vol. ii, pp. 447, 488.) The Austrian professor, Ferdinand Blumentritt, wrote in La Solidaridad of October 15, 1899, to this effect: “If the general condition of the civilization of the Tagalos, Pampangos, Bicols, Bisayans, Ilocanos, Cagayanes, and Sambales is compared to the European constitutional countries of Servia, Roumania, Bulgaria, and Greece, the Spanish- Filipino civilization of the said Indian districts is greater and of larger extent than of those countries.” And the foremost American scholar on the Philippines, gives the following résumé of the results of the Spanish administration: “The Spaniards did influence the Filipinos profoundly, and on the whole for the better. There were ways, indeed, in which their record as a colonizing power in the Philippines stands today unique in all the world for its benevolent achievement and its substantial accomplishment of net progress. We do not need to gloss over the defects of Spain; we do not need to condone the backward and halting policy which at last turned the Filipinos against Spanish rule, nor to regret the final outcome of events, in order to do Spain justice. But we must do full justice to her actual achievements, if not as ruler, at any rate as teacher and missionary, in order to put the Filipinos of today in their proper category.” (Le Roy: “Philippine Life in Town and Country,” 1905, pp. 6, 7.) It was on all that cultural background—the native and the Spaniard—that America had built. Without belittling what she, alone, has done for the Filipinos since 1898 it hardly can be disputed that the rapid progress towards modern democracy in the Islands has been due mainly to the materials she found there. This fact has made her task a great deal easier, and is the reason why even the early military governors thought best to preserve the old municipal institutions with very slight changes.
  • 61. Causes of Earlier Revolutions The Revolution of 1896 The Pact of Biac-na- Bato III. The First Philippine Republic The earlier revolutions against Spain were actuated by well-defined causes. They have been summarized as follows: (1) Denial of freedom of speech and press; (2) desire for Filipino representation; (3) proceedings by which a man was condemned without being heard; (4) violation of domicile and correspondence on mere secret denunciations; (5) agitation for the secularization of parishes; (6) political and civil equality for Filipinos and Spaniards; (7) desire for promulgation of the Spanish Constitution in the Philippines; and (7) the martyrdom of Burgos, Gomez, and Zamora, and later of Rizal. The revolution of 1896, however, had an additional cause which was dominant in the minds of the leaders. It was “Liberty, Equality, and Fraternity.” In the words of General Aguinaldo in a manifesto, “We aspire to the glory of obtaining the Liberty, Independence, and Honor of the Country.” This revolution was halted in 1897 by the Pact of Biac-na-Bato, which was signed between the Revolutionists and the Spanish authorities. There were three outstanding stipulations in the pact: First, that the Filipino leaders should leave the country for the time being. Second, that liberal and sweeping reforms would be introduced without delay. Third, that the sum of $800,000 would be paid the Filipinos in two instalments, as evidence of good faith.
  • 62. The Republic Governmen tal Machinery Set Up The Filipinos complied with their part of the agreement; Aguinaldo and his followers went to Hongkong. But the Spaniards did not comply with theirs; only $400,000 was paid to the revolutionists and no reforms were introduced. Accordingly, Aguinaldo and his companions returned to the Islands and renewed the struggle. On June 12, 1898 at Kawit, Cavite, they proclaimed the Independence of the Philippines from Spain. Soon afterwards a Philippine Republic was ratified, with General Aguinaldo as President. The capital was established at Malolos about 30 miles from Manila. There an elective Congress sat regularly, passed laws, levied taxes, administered revenues, kept in motion the machinery of justice, directed a military organization, carried on efficient war and constantly appealed to the patriotism of the people. A complete governmental machinery was set up. The government was declared to be “popular, representative, and responsible.” Church and state were made separate, and, profiting by the experience of the past, freedom of religious worship was expressly recognized in the Constitution. The powers of government were made to reside in three distinct entities—the legislative, the executive, and the judicial, to be entirely separate. It was declared that no two of these powers should be vested in a single person or corporation, nor can the legislative power be conferred on a single individual alone. The government was recognized throughout the islands and had the wholehearted support of the entire population. At the time America insisted in imposing her sovereignty and authority not only were the Filipinos in military control of the country; they were administering its political affairs as well. This they did from the establishment of the Republic until the autumn of 1899. “Up to that time,” writes Albert G. Robinson, of the New York Evening Post, “the territory occupied by the forces of the United States in the Island of Luzon was confined to a very limited area in the vicinity of Manila, with a filamentary extension northward for some fifty or sixty miles along the Manila- Dagupan railway. Very much the same condition obtained on the other
  • 63. Salient Features islands. One thing is certain: although greatly disturbed by the conditions of war, this territory was under some form of governmental administration.” THE MALOLOS CONSTITUTION.—The fundamental law that had been prepared and adopted by the independent government has since then been known as the “Malolos Constitution.” This Philippine Magna Carta embodied the advanced thought of the times and was replete with sound principles. It had all the requisites of a “fundamental law of the land”—an enumeration of individual rights, the organization of the state and of the government, provisions pertaining to the public welfare (such as education, appropriation, the militia, local government, impeachment, etc.) and provisions for constitutional revisions. The Parliamentary System of government was adopted as best suited to the needs of the archipelago. Sovereignty was to reside in the people through their duly elected representatives. The aim throughout was to adopt a government and a social order essentially democratic, without those privileges of caste or classes which were the determinant causes of the revolution. The popular assembly was to be the directing power. The following progressive principles were enunciated: (1) That no one should be tried in courts created by private laws or by special tribunals; (2) that throughout the republic there should not be more than one kind of court for all citizens both in civil, criminal, and military actions; (3) that no person or corporation should be given emoluments that were not as compensation for public service fixed by law; (4) there shall be no primogeniture nor should decorations and titles of nobility be accepted; (5) that every Filipino citizen shall enjoy the right of meeting, association, petition, and liberty of the press; (6) freedom of religious worship throughout the land and inviolability of domicile, correspondence, and property; (7) the right of habeas corpus; (8) gratuitous and compulsory public instruction; (9) taxes to be in proportion to the income of the taxpayers.
  • 64. The legislative power was vested in an unicameral assembly. The representatives elected by the people were to be representatives of the entire nation and could not bind themselves to specific mandates from their constituents. The President of the republic and the Assembly were to initiate laws. Impeachment of high officials of the government was unhesitatingly made a part of the fundamental law. Even the President of the republic could be impeached in cases of high treason. A permanent commission was created to take the place of the assembly during recess, the motive behind its creation being that legislative bodies should be permanent because the popular will works continually and consequently should be continually represented in the governmental machinery. The permanent commission was to be composed of seven members elected by the assembly from among its members. Its powers were: (1) To declare if a certain official of the government should be impeached; (2) to convene the assembly to an extraordinary session in cases in which it should constitute itself into a tribunal of justice to consider impeachments; (3) to resolve all pending questions with a view to bringing them before the assembly for consideration; (4) to convoke the assembly to special sessions whenever these are necessary; (5) to substitute the assembly in its power regarding the. constitution with the exception that the permanent commission can not pass laws. The executive power was vested in the President of the Republic who exercised it through his secretaries. The President of the Republic was elected by the constituent assembly by an absolute majority of votes. His term of office was four years but might be reëlected. The powers of the President were expressly enumerated. The secretaries of departments constituted the Cabinet, presided over by the President. There were seven departments—foreign relations; interior;
  • 65. finance; war and navy; public instruction; communications and public works; agriculture, industry, and commerce. Ministerial responsibility was established so that whenever a cabinet had lost the confidence of the majority of the assembly its members were morally bound to resign. The judicial power was vested in a supreme court and in such other tribunals as might be created by law. The judiciary was made absolutely independent of the legislative and executive departments. The chief justice and the attorney-general were appointed by the Assembly with the concurrence of the President and of the cabinet. Provinces and municipalities were given administrative autonomy. The central government intervened in their acts only when they over-stepped their powers to the prejudice of general or individual interests. A Constituent Assembly was to be convened in case of an election of the President of the Republic and whenever there were proposed changes in the constitution. In either of these two cases the regular assembly was dissolved by the President and the Constituent Assembly convoked. The constituent assembly was to be composed of the same members of the regular assembly plus special representatives. Such was the framework of the governmental machinery created by the first republican constitution ever promulgated in the East. In the words of General Aguinaldo, the Constitution was “the most glorious note in the noble aspirations of the Philippine revolution and is an irrefutable proof before the civilized world of the culture and capacity of the Filipino people to govern themselves.” Comments of Foreigners.—The comments of unbiased foreigners on this ill-fated attempt of the Filipino people to live an independent existence all point to the fact that the Republic together with the constitution the independent government had established was a great work of an unquestionably able people.
  • 66. John Barrett, ex-director of the Pan-American Union, saw the Philippine Republic in operation, and described it as follows: “It is a government which has practically been administering the affairs of that great island, ‘Luzon’ since the American possession of Manila, and is certainly better than the former administration. It had a properly formed Cabinet and Congress, the members of which, in appearance and manners, would compare favorably with the Japanese statesmen.” Admiral Dewey, after studying Philippine conditions, during the Spanish- American War, spoke of the Filipinos as follows: “In my opinion, these people are far more superior in intelligence and more capable of self-government than the natives of Cuba. I am familiar with both races.” General Merrit, on his arrival in Paris in October, 1898, was reported as saying: “The Filipinos impressed me very favorably. I think great injustice has been done to the native population.… They are more capable of self-government than, I think, the Cubans are. They are considered to be good Catholics. They have lawyers, doctors, the men of kindred professions, who stand well in the community, and bear favorable comparison to those of other countries. They are dignified, courteous, and reserved.” Leonard Sargent, a naval cadet, and W. B. Wilcox, paymaster of the Navy, after travelling over the Island of Luzon, at that time wrote a report of their trip, which was referred by Admiral Dewey to the Navy Department with the indorsement that it was “the most complete information obtainable.” Mr. Sargent remarked: “Although this government has never been recognized, and in all probability will go out of existence without recognition, yet, it cannot be denied that, in a region occupied by many millions of inhabitants, for nearly six months, it stood alone between anarchy and order.
  • 67. “As a tribute to the efficiency of Aguinaldo’s government and to the law-abiding character of his subjects, I offer the fact that Mr. Wilcox and I pursued our journey throughout in perfect security, and returned to Manila with only the most pleasing recollections of the quiet and orderly life which we found the natives to be leading under the new régime.”
  • 69. A Homogeneo us People IV. Population of the Philippine Islands The Filipinos are a homogeneous people. An American, Dr. Merton Miller, former chief ethnologist of the Philippine Bureau of Science is the foremost authority for the claim that: “From the extreme northern end of the Archipelago to its southernmost limits, with the exception of the few scattered Negritos, the people of the Philippines, pagan, Moro and Christian are one racially. There is some reason for believing that they migrated into the islands at two different times. But in all probability they came from the same general region and have a common ancestry. “There are many different languages or dialects in the Philippines but all are closely related one to another, the pronunciation and mode of speech vary but little from one section of the Philippines to another and the majority of the words are common to two or more of the Philippine languages. These languages, whether spoken by pagan, Moro or Christian, belong to the great Malayo- Polynesian family, branches of which are found in Sumatra, the Hawaiian Islands, Madagascar and on many islands between.” Ex-President Taft has the following to say about Filipino homogeneity: “The word ‘tribe’ gives an erroneous impression. There is no tribal relation among the Filipinos. There is a racial solidarity among them undoubtedly. They are homogeneous. I can not tell the difference between an Ilocano and a Tagalog or a Visayan.… To me all the Filipinos were alike.” While Governor General Harrison, before a joint committee of Congress, expressed himself thus: “To my way of thinking, they are very remarkably homogeneous, quite as much so as any nation in the world to-day with which I have any acquaintance. From one end of the Philippine Islands to the other the people look very much alike; their manners are very much the same; their style of living is about the same; and they are being generally educated along the same lines by the government and by the private schools, which are coöperating with the government. So that I think
  • 70. Total Population they already have one of the prime requisites to a nationality, namely, a general and universal feeling that they belong to the same race of people.” The total population of the Philippine Islands according to the Census of 1918 is 10,350,640. Of this number 9,495,272 are Christians, while 855,368 are non-Christian so-called. The non- Christian element, therefore, represents 8.2 per cent of the total population. In this number are included the Mohammedans of the South and the Igorots and other mountaineers, who have been so widely advertised abroad and often represented as typical Filipinos. FOREIGN POPULATION OF THE PHILIPPINE ISLANDS American 6,405 Spanish 4,015 English 1,063 German 312 French 218 Swiss 451 Chinese 45,156 Japanese 6,684 All others 1,111 Total 65,415 COMPARATIVE POPULATION Philippines 10,350,640 Argentina 8,284,000 Belgium 7,658,000 Canada 8,361,000 Australia 4,971,000 Cuba 2,628,000
  • 72. Number of Islands Total Land Area Bays and Straits V. Geographical Items of Interest The Philippine Archipelago is entirely in the Tropics. They lie north of the Dutch and British Island of Borneo and the Dutch Island of Celebes; South of the Japanese Island of Formosa; East of French Indo-China, and Southeast of Hongkong and the Southern provinces of China. There are 7,083 islands in all extending 1,152 statute miles from north to south and 688 statute miles from east to west. Two thousand four hundred and forty-one of the Islands have names, while 4,642 are unnamed. The northernmost Island known as Y’Ami Island is 65 miles from Formosa while the southernmost, called Salwag, 4° 40′ from the Equator, is only 30 miles east of Borneo. The total land area of the entire archipelago is approximately 115,000 square miles. This is in excess of the combined areas of the States of New York, New Jersey, Pennsylvania, and Delaware; only about 7,000 square miles less than the total area of the British Isles; about 5,000 square miles more than the total area of Italy; and about two-thirds the size of Spain. Luzon Island alone which is the largest is as large as Denmark, Belgium, and Holland combined. It contains 46,969 square miles. Mindanao, the second largest, is about equal in area to Portugal. Ten islands contain more than 10,000 square miles each or 6,400,000 acres; while 20 of the islands have between 100 and 1,000 square miles each. About seven-eighths of the total number of islands composing the Archipelago contain less than 1 square mile each. There are twenty-one fine harbors and eight land-locked straits. Manila Bay with an area of 770 square miles and a circumference of 120 miles is reputed to be the finest in the Far East. It is said that it can accommodate the entire fleet of the world. It is a roadstead, in all parts of which vessels can anchor. Manila, Cebu, Iloilo, Zamboanga, and Jolo are at present the ports of entry.
  • 73. Mountains Rivers Lakes Falls Mineral Springs The interisland waters are shallow, averaging between seventy-five and five hundred fathoms. There are at least seven principal mountain ranges and twenty more or less active volcanoes. Mount Apo in Mindanao is the highest being 9,610 feet. Canlaon in Negros is second with 7,995 feet; Mayon in Albay third, with 7,943 feet. Nearly all the principal islands have important river systems. In Luzon are the Rio Grande de Cagayan, 220 miles long, which drains 16,000 square miles of territory, the Rio Grande de Pampanga, emptying into Manila Bay through a dozen mouths, the Agno, the Abra, Bued, and the more familiar Pasig. The Rio Grande de Mindanao, 330 miles long, is the largest in the Islands, and the Agusan, also in Mindanao, is the third in size. Mindoro has 60 rivers and Samar, 26. In Panay, are the Jalaud and Panay and in Negros the Danao and the Lanao. Inter-island steamers berth in the Pasig as far as the Jones Bridge. The larger rivers, in addition to being navigable for steamers and launches of light draft for distances of from 20 to 200 miles, could furnish abundant water power for manufacturing purposes. Mindanao, especially the basin of the Agusan, has a vast number of lakes, among them the famous lakes Lanao, Mainit, and Lagusan. Laguna de Bay, near Manila, Lake Naujan in Mindoro, Taal, and Bombon lakes in Batangas, and Lake Bito in Leyte are also noted for size and beauty. The Falls of Pagsanjan and the Botocan at Majayjay, in Laguna Province; the Maria Cristina, the Pigduktan, and Kalilokan, in Mindanao, are the largest and most beautiful. Some 170 or more medico-mineral springs, hot and cold, are known in the Islands, many rivaling the most famous of Europe and America. Near Manila are those of Los Baños, Sibul, Lemery, Tivi, and Marilao.
  • 74. Climate Father Algué, the world famous Director of the Weather Bureau, divides the climate into three types, the classification being based on distance above sea level and exposure to ocean breezes. November, December, January, and February are the temperate months. The mean average temperature at this season is about 77° to 79° Fahrenheit. In April, May, and June, the hot months, the mean average is between 83° and 84°. In other months it is about 80°. The nights are seldom unpleasantly hot even in the hot season, and a temperature of 100° is a rarity in Manila. The mountain regions of the north are cool as September in the temperate zone. The mean average maximum for Baguio is 80° and the minimum 53°. Far south, nearer the equator, in some localities it is hotter; but Zamboanga and the Provinces of Bukidnon and Lanao boast a most agreeable and healthful climate. The climate is thus mildly tropical. Sunstrokes are unknown. The recorded death rate per 1,000 whites in Manila for 1917 was 8.8, as compared with 16.5 for New York, 15 for San Francisco, 14 for Chicago, 18 for Glasgow, and 22 for Belfast. DIFFERENCES IN TIME Manila is in advance of: London 8 hours and 3 minutes. New York 12 hours and 59 minutes. San Francisco 16 hours and 11 minutes. Washington 13 hours. COMPARATIVE AREAS Sq. Miles Philippines 114,400 British Isles 121,438 New York, New Jersey, Pennsylvania, and Delaware 104,970
  • 75. Sq. Miles Japan 147,698 Hungary 125,641 Italy 110,660 Norway 124,675 RAINFALL Maximum days of rain in July, August, September. Minimum days of rain in February and March. Dry Season: November to May, inclusive. Wet Season: June to October, inclusive. Typhoons: Frequent in July, August, September, and October. The lowest average rainfall for the last twelve years for the whole Archipelago was 60.73 inches in the driest region, the highest, 125.68, in the wettest. Manila’s average was 75.46.
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