SIXTH FRAMEWORK PROGRAMME Project contract no. 502527 ESPREME Estimation of willingness-to-pay to reduce risks of exposure to heavy metals and cost-benefit analysis for reducing heavy metals occurrence in Europe Specific Targeted Research Project Research priority 1.6. Assessment of environmental technologies for support of policy decisions, in particular concerning effective but low-cost technologies in the context of fulfilling environmental legislation Workpackage 06 – D05b Exposure-response-functions for HM impacts on ecosystems and crops March 2007 Due date of delivery after extension: February 2007 (final version) Actual submission date: 6st February 2007 Start date of project: 1st of January 2004 Duration: 36 months (extended to March 2007) Lead authors for this deliverable: Mohammed Belhaj, IVL Project co-funded by the European Commission within the Sixth Framework Programme (2002-2006) PU PP RE CO Dissemination Level Public Restricted to other programme participants (including the Commission Services) Restricted to a group specified by the consortium (including the Commission Services) Confidential, only for members of the consortium (including the Commission Services) x ESPREME DELIVERABLE D05B Table of Contents 1. INTRODUCTION ........................................................................................................................... 2 2. EVALUATION METHODS .......................................................................................................... 2 2.1. 2.2. 2.3. 3. HEALTH EFFECTS ....................................................................................................................... 3 EVALUATION OF HEALTH EFFECTS ............................................................................................. 6 ECOSYSTEM EFFECTS ................................................................................................................. 9 CONCLUSION.............................................................................................................................. 11 List of Tables Table 2.1 Damage costs of air emissions, Euro per kg of emission ......................................................... 6 Table 2.2 Human toxicity due to heavy metals emissions (Euro/kg) ....................................................... 7 Table 2.3 Environmental taxes and fees existing in Sweden in 1998 *. ................................................... 7 Table 2.4 Options for a charge on cadmium in fertilizers ........................................................................ 8 Table 2.5 One-step weighting factors for human toxicity* ...................................................................... 9 Table 2.6 One-step weighting factors for aquatic ecotoxicity based on AEPs ....................................... 10 Table 2.7 One-step weighting factors for aquatic ecotoxicity for metals released to soil and air. ......... 10 Table 2.8 One-step weighting factors for terrestrial ecotoxicity for metals released to soil and air. ..... 11 List of Figures Figure 2.1 The composition ot the total economic value .......................................................................... 3 1 ESPREME DELIVERABLE D05B 1. Introduction Air pollution is a question of higher importance in Europe and upcoming legislation and revisions of Convention (CLRTAP) are expected to enhance the European air pollution. Established in 1998 the joint Task force on Health Aspects of Long-Range transboundary Air pollution (TF Health) by the Executive Body and the World Health Organization/Regional Office for Europe analyzed the impacts of particulate matter, and ozone, heavy metals and persistent organics. Based on the WHO review of new evidence of health effects of common air pollutants, published in 2003, the TF Health reviewed the available information on the sources, chemicals properties and spatial distribution of pollution from cadmium (Cd), lead (Pb) and mercury (Hg) and evaluated the potential health effects in Europe. In the case of mercury for instance, estimating the risk of dietary exposure is at present difficult to quantify due to the very complex dynamics of Hg in soil and water, and the factors that influence the biomagnification of methylmercury concentration in predatory fish.1 In order to estimate the willingness of EU countries to pay for preventive measures related to six heavy metals, namely – arsenic, cadmium, chrome, lead, mercury and nickel, the ESPREME programme aims at analysing costs and benefits of reducing the effects of HM on health and the ecosystem. Since other work packages of the programme are concerned with the cost side, the objective of this study is a literature survey related to willingness to pay to reduce the emissions. However, since studies assessing willingness to pay to reduce the impacts of heavy metals are scarce, some surrogate methods are presented and discussed in the case of health toxicity. In the case of ecosystems some methods will be briefly discussed and the Ecotax method will be presented and the estimated values based on this method are presented for ecological toxicity. This study is structured as follows. Section 2 is a discussion of different evaluation methods and the results based on some methods are presented. Section 3 concludes. 2. Evaluation methods In order for physical measures of impacts to be commonly measurable, they must be valued in monetary units. The monetary valuation of different effects is not a straightforward procedure since many of the effects have no market value. In general we often talk about the total value of something. As shown in Figure 2.1, this total value is often composed of both use and non-use values. The use value is the value derived from actual use of a good or service. The non-use values, also referred to as “passive use” values, are values that are not associated with actual use, or even the option to use a good or service. The use value includes direct, non-direct and option values. The direct use value is the value attributed to direct utilisation of ecosystem services. Non-direct-use values or "functional" values relate to the ecological functions performed for example by forests, such as the protection of soils and the regulation of watersheds. Option value is the value that people place on having the option to enjoy something in 1 http://www.unece.org/env/wge/inf.doc.1.2004%20Substantive%20Report.draft.pdf 2 ESPREME DELIVERABLE D05B the future, although they may not currently use it. On the other hand, the non-use values include both bequest and existence value. Bequest value is the value that people place on knowing that future generations will have the option to enjoy something. Existence value is the value that people place on simply knowing that something exists, even if they will never see it or use it. In order to assess these values, environmental economics uses several methods. These methods may be based on stated preferences involving studies including questionnaires asking respondents for their willingness to pay such as in the case of contingent valuation and stated preference methods. Other methods are based on revealed preferences that are often based on consumers´ or producers' behaviour or actions such as the hedonic price method that is used to estimate the value of environmental effects on properties such as the effect of noise or air pollution on house prices. Figure 2.1 The composition ot the total economic value 2.1. Health effects In the case of health effects other methods than stated or revealed preference ones can be used to estimate the impact of externalities. These methods may be HALY, DALY or QALY. The HALY is a Health Adjusted Life Year i.e. a generic term that includes the two most popular measures, the QALY or Quality Adjusted Life Year and the DALY or Disability Adjusted Life Year. The QALY is simpler. A value of quality of life is assigned from 0 (dead) to 1 (perfect health). The DALY is different in that the reference states are 0 for perfect health and 1 for dead, and it is estimated for particular diseases, instead of as a health state.2 more details related to these methods see ENGRI http://www.mse.cornell.edu/courses/engri119/Class_Notes/haly_daly_qaly.html 2 For 3 ESPREME DELIVERABLE D05B DALY ( x) D(Cx x )e r ( x a ) Where x is age, C is a constant with the value 0.16243, r is the discount rate, and β equals 0.04. Except DALY other evaluations of health effects estimates are based on the value of statistical life (VSL) or the value of lost years (VOLY) where the relation between the two is as follows: The willingness to pay for Δs (the change in the risk to die) leads to the value of statistical life such as: VSL WTPi / sN i where N is the population at risk. Within the ExternE for instance mortality is evaluated according to the reduction of life expectancy but there has been a lack of studies that determine the value of a life year (VOLY). Therefore ExternE derives VOLY from the so called VSL for which there are a very large number of studies, by assuming that VSL is the present value of a discounted series of annual VOLY values such as: VSL VOLY x Pi / (1 r )i x T ix where xPi is the conditional probability to live until year i for a person at age x. T is the maximum expected life length and r is the discount rate. The VSL method has been used for instance in the impact pathway approach that has been developed in the EC funded ExternE project series. Based on dose response functions this approach estimates the environmental damage costs by using a damage function and associates the environmental change to the implied impacts on health and the environment. To estimate the damage cost on health for instance, different methods have been used to calculate the value of a statistical life such as VSL and the value of a year of lost life (YOLL). However, using DALY to estimate the damage costs may lead to underestimations (Pearce et al (2004)). In order to avoid this underestimation that is based on the equalisation of expenditure spent on avoiding and treating the causes of DALY, a next best approach is developed and includes the willingness to pay (WTP) of individuals to avoid health states in question. As the estimate of VSL is more easily defended from a theoretical perspective, Pearce et al (2004) follow a procedure adopted in a World Bank study of pollution control and assign a WTP value to a DALY based on an ‘anchor’ estimate of VSL and an implied value of VOLY. As in the case of health effects, direct measures and monetarisation of ecosystem damage may be difficult or impossible to find. Furthermore, studies based on willingness to pay are scarce. Therefore other methods are used to study the effects on ecosystem methods such as: 4 ESPREME DELIVERABLE D05B -The standard price method The standard price approach estimates the revealed preferences of policy makers. It calculates the benefits of emission reduction – as perceived by policy makers - based on the abatement costs to reach a well-defined emission reduction target. These costs are a proxy for the benefits that policy makers attribute to these reductions, as we assume that policy makers act as rational decision makers who carefully balance (their perception of) abatement costs of emission reductions with (their perception of) the benefits of these emissions. However, since the standard price approach is based on the current preferences of policy makers, as reflected in air quality policies, it cannot be used for cost-benefit analysis or policy advices related to these emission reduction policies (Vermoote (2003)). -The Clean-up cost approach The clean-up cost approach approximates the estimation of damage costs using costs linked to cleaning up or reducing a particular pollution. The idea is that once the damage resulting from pollution is done, then the costs of rehabilitation to achieve the pre-damage situation will appear as a measure of damage done. From an economic point of view, this deduction is at the very least debatable. Strictly speaking, the costs of cleaning up are not a substitute for damage costs (EC (2000)). As in the case of standard price approach, the clean-up costs cannot be used in a cost benefit analysis and they need to be used with caution if they are applied as measures of damage. -The Ecotax method The Ecotax method also called the valuation weighting method is a monetarisation method based on a combination of environmental taxation with Life Cycle Analysis (LCA). This method which can estimate both health effects and environmental effects relies on two basic assumptions where the first one is that the members of parliament represent the will of the people, and the second is that the environmental tax system represents the priorities of the parliament. This method is in line with the assumption in Leksell (1987) and Carlsson et al (2003) and EC (2003) where the method is based on the fact that since a tax level is set optimally, based on governmental objectives, then this number reflects the social value per unit of emission reduction. This Ecotax method proceeds in the following way to estimate damage costs of certain emission. In cases where the tax or fee used is not on the reference substance of the characterization method (as is the case for many substances), the calculations are made according to the principle that a contribution to an impact category can be considered equally harmful independently of what caused it. The value of one extraction or emission may be translated into another extraction or emission contributing to the same impact category, by means of characterisation factors (Johansson (1999)). For example, an emission of 1 kg of methane is, according to IPCC (1995), equivalent to 56 kg of carbon-dioxide over a 20 year time frame. Emissions of carbon-dioxide has the value 0.041 Euro per kg, and thus, the emission of methane receives the value (56 kg/kg * 0.041/kg) = 2.30 Euro/kg. The performance of such calculations results in weighting factors that include both the characterisation and the valuation substeps of impact assessment. Hence, the functional form for the estimations is as follows: X x ( Aa / Bb ) *Yx 5 ESPREME DELIVERABLE D05B (Xx) represents the value of substance x, which is the one-step weighting factor searched for, (Aa) is the valuation weighting factor for substance a and (Ba) is the characterization factor for substance a and (Yx) is the characterization factor for substance x, given by the characterization method. 2.2. Evaluation of health effects Health effects from heavy metal have been estimated using different methods. In a study on the economic valuation of environmental externalities from landfill and incineration of waste (EC (2000)) damage costs due to heavy metals were collected. These costs are shown in table 2.1 where the differences between the estimated values depend on the effects included and the methods used in the estimation. Table 2.1 Damage costs of air emissions, Euro per kg of emission Study 1 Study 2 Study 3 Arsenic Cadmium 150 999 1015735 18.3 81.4 125370 Chrome (VI) 123 819 200642 Lead Mercury Nickel 16.8 34627 25909 2.53 101549 Source: Adapted from EC (2000). Notes: Study 1: Ralf et al (1998): Study on Health Risks of Air Pollution from Incinerators. NOx: NO2 (via xNO3) + NO2 (via O3) Study 2: EC (1996): Economic Evaluation of the Draft Incineration Directive. VOC: total TOC is indicated. German site used as base case. Study 3: ECON (1995): Miljøkostnader knyttet til ulike typer avfall. Conversions performed with exchange In the table, studies 1 and 2 are based on ExternE for conventional pollutants. Study 1 only includes health effects whereas study 2 includes other quantifiable effects as well (EC (2000). As shown the variation of the costs is large. However, it appears that studies 1 and 2, which are based on epidemiological studies, are in the same order of magnitude. In contrast the results of study 3 based on health indices are much higher. It could be argued that studies 1 and 2 do not look at all health effects from these substances, because not all health effects could be quantified. However, the theoretical validity of the valuation approach used in study 3 is questionable, thus bringing into question the robustness of the cost estimates (ibid). In a study by Spadaro and Rabl (1999) carcinogenic toxicity of arsenic, cadmium, chrome and nickel was evaluated based on the impact pathway methodology integrating real impacts of air emissions in Life Cycle Analysis.3 Only the inhalation dose was taken into account. 3 A life cycle analysis and assessment (also known as life cycle analysis, life cycle inventory, ecobalance, cradle-to-graveanalysis, well-to-wheel analysis, material flow analysis and dust-to-dust energy cost) is the assessment of the environmental impact of a given product or service throughout its lifespan. 6 ESPREME DELIVERABLE D05B Table 2.2 Human toxicity due to heavy metals emissions (Euro/kg) Spadaro & Rabl (1999) Arsenic Cadmium Chromium (VI) Nickel (*) EC (2000) 171 20.9 140 2.87 Intervals of values from literature* 150 – 999 18.3 - 81.4 123 – 819 2.53 - 16.8 As shown in table 2.2 Sparado et al results that are assumed to be consistent (EC (2003)) lie in the low range of values collected from other studies where overestimation may depend on the method used, the data available or both. - Ecotax method In order to use the Ecotax method the different environmental taxes and fees existing in the Swedish tax system shown in table 2.3 are linked to the appropriate impact category. Since the same substances that are toxic to many other organisms in the ecosystems are also toxic to humans the substances treated in this method that are related to ecotoxicological effects are also applicable on human toxicological effects. Except the fact that the levels of taxes and fees are assumed to be set optimally, the choice of the Swedish values depends on their high level compared to the levels of taxes and fees in other EU countries. The low level of taxes and fees, if they exist, in other EU countries would imply that the taxes are lower than the damage costs they give rise to. Table 2.3 Environmental taxes and fees existing in Sweden in 1998 *. Impact category Ecotoxicological and human health Taxes and fees effects 2.2 Euro/kg pesticide 3333.3 Euro/kg cadmium 1.1 – 11.1 Euro/kg benzene 20-38.9 Euro/kg lead Source: adapted from Johansson (1999) where non-toxicological effects is not accounted for. (*) based on 1 Euro= 9 SEK, However since the level of these taxes and fees has not been changed the values are not adjusted to 2007. In Europe, environmental taxes and fees in the agricultural sector that are connected to different impacts are not available or they do not exist in many countries. EC (2000) studied the introduction of charges on cadmium in Europe in order to estimate the value of the charge. Since there is a wide variation within the EU in the sensitivity of soils to cadmium accumulation, as well as in the cadmium levels in agricultural soils, the optimal tax rate would therefore differ by region from an environmental point of view. In theory farmers in sensitive areas would pay more for high cadmium content fertilizer 7 ESPREME DELIVERABLE D05B use than farmers in other areas. However, a ‘farm-to-farm’ differentiation of the tax rate seems to be unfeasible. Differentiation by Member State is an alternative, although differences in soil sensitivity and background concentrations of cadmium within one Member State can be considerable. However, 3 options of a charge on cadmium in fertilizers are calculated based on remediation costs. These charges which are shown in table 2.4 are proposed to internalize the costs of the impacts. Table 2.4 Options for a charge on cadmium in fertilizers Uniform approach Minimum approach Divergent approach Degree of harmonizati on Applied in all Member States at a uniform charge rate Applied in all Member States at charge rates equal to, or exceeding an EU wide minimum Applied in some Member States only, with differences in charge rates Moderate version Charge rate EUR 0.25 g/ Cd, initially applying to fertilizer with more than 60 mg Cd per kg P2O5. Threshold lowered to 40 mg Cd per kg P2O5 after 2 years and to 20 mg Cd per kg P2O5 after another 2 years Minimum charge rate EUR 0.25 per gramme Cd; thresholds and phasing as in Uniform approach Charge rates on average EUR 0.25 g/Cd; thresholds as in Uniform and Minimum Rate approach; phasing differing between Member States Stringent version Charge rate EUR 1.00 per gramme Cd; no threshold or phasing Minimum Charge rate EUR 1.00 g/ Cd; no threshold or phasing Charge rates on average EUR 1.00 g/Cd; no threshold or phasing When comparing the Cd taxes in Sweden i.e. 3.34 Euro per gramme of Cd with the proposed maximum charges in Europe i.e. 1 Euro per gramme of Cd , the Swedish tax is more than three times the maximum charge proposed for Europe. However, since the charge on cadmium is based on remediation’s costs which is based on equivalent assumptions as the clean-up cost approach, discussed above, the values may be misleading.4 Therefore, the charges used in this study for the calculation of damage costs based on the Swedish taxes and fees would be optimal. -results of ecotax method Based on the Ecotax method as well as the Swedish taxes and fees the one-step weighting factors for human toxicity for emissions to outdoor air, emission to water and emission to soil are from Johansson Since short-run own-price elasticity on the demand for chemical fertilisers ranges from –0.2 to –0.3 (Bäckmann, 1999), the low charge would not lead to any significant reductions of the fertilizers. 4 8 ESPREME DELIVERABLE D05B (1999)). The weighting factors are based on human toxicity potentials (HTPs) from Jollier and Crettaz (1997). Table 2.5 One-step weighting factors for human toxicity* Human toxicity for Human emissions to outdoor air toxicity for emissions to water Based on Based on Based on 11.11 38.89 2.22 Euro/kg Euro/kg Euro/kg copper benzene lead Arsenic Cadmium Chromium Lead** Mercury Nickel 7.5e+07 1.6e+08 3.1e+07 1.9e+07 3.8e+08 3.1e+06 1.4e+03 2.9e+03 5.6e+02 3.5e+02 7.0e+03 5.6e+01 1.4e+03 2.9e+03 5.6e+02 7.8e+02 7.1e+03 5.6e+01 Human toxicity emissions to soil Based on 3333.3 Euro/kg cadmium Nonedible crops 1.4e+04 3.0e+04 6.0e+03 1.2e+04 7.4e+04 6.0e+02 for Based on 3333.3 Euro/kg cadmium Edible crops 1.5e+04 3.0e+04 5.9e+03 3.7e+03 7.4e+04 5.9e+02 (*) based on 1 Euro= 9 SEK. (**) only if the inhalation route of exposure is taken into account As shown in the table values related to human toxicity for emissions to outdoor air in general and mercury in particular are the highest implying that the damage of this substance on human health is considerable. However, it is difficult to compare the values shown in this table to the values shown for the human health in the studies discussed above based mainly on the substances studied and the methods used. 2.3. Ecosystem effects The toxicological effects are difficult to assess. The toxicological effects depend on many things, such as the concentration of the substance that the organism is exposed to, and the route of exposure. There may also be different degrees of sensitivity towards the same substance among different organisms. Another thing determining the damage imposed by a chemical is its fate in the environment, i.e. how long it stays there before it is degraded, what the degradation products are and how it is transferred between different environmental compartments such as air, soil and water. Analysing the effects of chemical substances releases requires a lot of data, which is often far from easily obtained. Out of the approximately ten million known substances, about 20 000 - 60 000 are in commercial use in the industrialised countries (Thunberg 1992). Even for the most commonly used chemicals many features determining their toxicological properties remain unknown (Johansson (1999)). Hence, two problems exist regarding environmental impact assessment (EC (2000)): -Data are not sufficient to calculate the damage caused by a given impact to ecosystems; -There is no generally accepted way to quantify quantifiable damage caused to ecosystems. 9 ESPREME DELIVERABLE D05B - Evaluation of ecosystem effects Based on the Ecotax method as well as the Swedish taxes and fees the following one step weighting factors are estimated for: - Aquatic ecotoxicity based on aquatic ecotoxicity potentials (AEPs) for emissions to water from Jolliet and Crettaz (1997); - Aquatic ecotoxicity for metals released to soil and air; - Terrestrial ecotoxicity for metals released to soil and air. In the case of aquatic ecotoxicity table 2.6 shows the calculated values based on AEPs for emissions to water and the tax on the active substance in pesticides. As can be seen mercury have the largest impact (as in the case of human health) followed by cadmium. The impact of the other heavy metals is comparatively marginal. Table 2.6 One-step weighting factors for aquatic ecotoxicity based on AEPs Characterization factor Substance AEP emission to water One step weighting factor Euro/kg Based on Euro 2.22 /kg * copper Arsenic Cadmium Chromium Lead Mercury Nickel 0.52 520 2.6 5.2 1300 0.79 0.2 222.2 1.1 2.2 555.5 33.3 * based on 1 Euro= 9 SEK When it comes to aquatic ecotoxicity for metals released to soil and air the damage cost of mercury is the largest being 8333 Euro/kg for emissions to soil and 6000 Euro/kg for emissions to the air. In the case of cadmium its damage is lower than that for mercury but it is much larger than the damage of the other substances shown in the table. Table 2.7 One-step weighting factors for aquatic ecotoxicity for metals released to soil and air. Emission to soil Characterizatio n factor Substance AEP Arsenic Cadmium 0.24 240 Emission to air One step Characterizat One step weighting factor weighting ion factor factor Euro/kg Euro/kg Based on AEP Based on Based on Euro 180 Euro Euro/kg 3333.33/kg) 20/kg) 38.88/kg lead cadmium lead 98 octane 93 octane 3.3 0.08 1.2 2.3 3333.3 79 1222.2 2444.4 10 ESPREME DELIVERABLE D05B Chromium 1.2 16.6 0.4 6.1 12.2 Lead 3.9 54.4 1.3 20 38.9 Mercury 600 8333.3 200 3111.1 6000 Nickel 0.4 5 0.12 1.9 3.7 When it comes to terrestrial ecotoxicity for metals released to soil and air the results show again that mercury and cadmium have the largest impacts on the ecosystem. Table 2.8 One-step weighting factors for terrestrial ecotoxicity for metals released to soil and air. Emission to air Characterization One step factor factor Substance Emission to soil Characterization One step factor weighting factor Euro /kg AEP Based on 30000 SEK/kg (Euro 3333.33/kg) cadmium Arsenic Cadmium Chromium Lead Mercury Nickel 2.3 9.6 0.3 0.4 18 1.1 0.8 3.1 0.08 0.13 5.9 0.35 800 3333.3 90 144.4 6333.3 377.8 AEP Euro /kg Based on 180 SEK/kg (Euro 20/kg) lead 93 octane 111.1 477.8 12.2 20 911.1 53.3 weighting Based on 350 SEK/kg (Euro 38.88) lead 98 octane 222.2 944.4 24.4 38.9 1777.7 104.4 3. Conclusion Based on the lack of WTP studies to assess the benefits of reducing the effects on heavy metals on human health and the environment, several other methods can be used to estimate the damage cost of the metals. In the case of health effects a combination of the impact pathway approach and DALYs would be the second best choice. When it comes to effects on the ecosystem, the Ecotax method combining taxes and fees with LCA may also constitute a second best choice. However, one should keep in mind that the results presented concerning the impacts relative to different substances depend on the taxes and fees being used as well as the toxicity potentials. When it come to taxes and fees, the Swedish values that are used are higher than both the average in EU as well as the suggested levels in EC (2000) related to the case of cadmium. Therefore, the estimated values for the ecosystem might give an insight on the ranges of the damage cost implied by the studied heavy metals especially if the values are meant to be used in a cost benefit analysis. 11 ESPREME DELIVERABLE D05B Further, based on the results of environmental effects the damage of mercury and cadmium are highest compared to the other studied heavy metals. Compared for instance to the cost of decadmiation these damage values are very high suggesting higher charges on cadmium. 12 ESPREME DELIVERABLE D05B References Carlsson, F., Johansson-Stenman, O. (2003): Costs and benefits of electric vehicles; A 2010 perspective. Journal of transport economics and policy, V 37, part 1. European Commision, DG environment (2000): A study on the economic valuation of environmental externalities form landfill disposal and incineration of waste. Final main report. European Commision, DG environment (2000): Study on external environmental effects related to the life cycle of products and services, Final report European Commission (2001): Economic Evaluation of Air Quality Targets for Heavy Metals, Entec UK limited, Final Report. Johansson, J. (1999):A Monetary Valuation Weighting Method for Life Cycle Assessment Based on Environmental Taxes and Fees. Master Degree thesis in Natural Resources Management. Stockholm University Jolliet, O. and Crettaz, P., (1997): Critical Surface-time 95; A life cycle impact assessment methodology including fate and exposure. Swiss Federal Institute of Technology, Institute of Soil and Water Management, Lausanne, Switzerland. Leksell, Ingemar (1987), ”Samhällsekonomisk värdering av bilavgasutsläpp”. DsK 1987:6, Ministry of infrastructure (Kommunikationsdepartementet), Stockholm. Pearce, D., Koundouri, P. (2004): Regulatory assessment for chemicals: a rapid appraisal cost-benefit approach. Environmental Science & Policy 7. Spadaro JV & A Rabl (1999). "Estimates of real damage from air pollution: site dependence and simple impact indices for LCA". International J. of Life Cycle Assessment, Vol.4 (4), 229-243. Vermoote, S. och DeNocker, I. (2003). Valuation of Environmental Impacts of Acidification and Eutrophication Based on the Standard Price Approach. VITO NV – Integral Environmental Studies. 13 ESPREME DELIVERABLE D05B Appendix Critical Surface-Time 95 Jolliet and Crettaz (1997) suggest a method for the characterisation of ecotoxicological effects within the Critical Surface-Time 95 methodology for life cycle impact assessment. The ecotoxicity potentials in this approach are based on the assumption that two emissions are equivalent if they generate their respective no effect concentration (NEC) during one year in the entire ecosystem considered. The effect is assumed to be linear both with concentration and polluted volume. Thus, a concentration of a pollutant of 0.5 mg/m3 in a volume of 1000 m3 is considered to have the same effect as a concentration of 1 mg/m3 in a volume of 2000 m3. Fate and exposure are taken into account by the degradation, dilution, inter-media transfer and food chain/bioconcentration routes. The mean residence time of the substance in the medium per height of dilution is also considered. For the aquatic ecotoxicity potentials (AEPs) the reference substance is zinc emitted to water. When determining the NEC, extrapolation factors of 100 is used if three LC50 are available (for algae, crustacean and fish) and of 1000 if less than three LC50 are available. Only surface fresh water is considered. The reference substance for the terrestrial ecotoxicity potentials (TEPs) is zinc emitted to soil. The NECs are based on the LC 50 of earth worms with an extrapolation factor of 1000. Where no data is available for earth worms, terrestrial ecotoxicity is extrapolated on the basis of the LC50 for Tubifex worms in water. AEPs are presented for emissions of eight metals to water, soil and air and for emissions of oil, phenol, phosphate and BOD to water. 14