AdaptCost Briefing Paper 4: Health Adaptation Costs – Africa Review Key Messages 1. Estimates of the economic costs of adaptation require investigation of several lines of evidence. These range from detailed case studies of projects and plans through to the global scale of integrated assessments. Each approach brings insight into a complex area, where we have relatively little experience. This note considers the costs of adaptation for ecosystems. 2. Health has been identified as one of the key sectors for adaptation in Africa. A range of potential impacts could occur from climate change, including potentials shift in areas vulnerable to malaria, diarrhoea, schistosomiasis, the potential for heat related mortality and morbidity, and the increased incidence of deaths/injuries/disease linked to the coastal and inland flooding. There are also indirect effects associated with changes in the risk of under-nourishment and malnutrition, and wider effects between economic and development levels and health. Finally, there are also risks to public health systems and infrastructure. 3. There are existing continental studies of the potential impacts of climate change and health, as well as several national studies. These show increased health risks with climate change, particularly for subSaharan Africa, though the level of impacts are strongly influenced by future development and economic growth – with assumptions of higher development (and lower baseline incidence), then impacts and therefore adaptation costs are lower. 4. At the continental scale, a number of studies have estimated short-term adaptation costs, using estimates of future health impacts and combining these with prevention costs. 5. The costs of adaptation associated with malaria and diarrhoeal disease (examples of vector and food borne disease respectively) have been estimated for Africa at between $2.2 to 3.3 billion per year by 2030 (UNFCCC, 2007), $2 to $9 billion per year by 2030 (Markandya et al, 2009) and most recently, around $1 billion per year in the period up to 2050 (World Bank, 2009). The range is determined primarily by assumptions of development baselines and incidence rates. There are some estimates of the costs of adaptation for malnutrition, but these are much lower, and also overlap with the agriculture sector, considered in a separate note. 6. Other studies (Parry et al, 2009) highlight that this focus on only two or three health endpoints implies that total health adaptation costs will be much higher, and reports that the current estimate above might therefore reflect only 30 – 50% of total health adaptation costs. 7. Nonetheless, a general finding is that health adaptation is extremely cost-effective, and that adaptation can reduce potential impacts very significantly, at relatively low cost. In many cases, measures that are effective for preventing future climate risks also have more general benefits in relation to the current adaptation deficit and accelerating development. 8. There are also a number of national studies that have assessed the costs of adaptation, such as recent work in Kenya on malaria, a wide coverage of health protection for Ghana, and health protection against extreme events (droughts) in Tanzania. 9. The Ghana study estimates the incremental cost of adaptation in the health sector to be $ 350 million by 2020 and a similar amount from 2020 through to 2050 (total, not annual), whilst the Kenya study assess the annual costs of adaptation at around $23 million/year by the 2050s. 10. These more dis-aggregated studies tend to reinforce the finding that health adaptation costs will be relatively low compared to some other sectors, and that action is cost-effective. Nonetheless, there is still a need for further analysis to cover the full range of potential health outcomes from climate change, to develop the analysis of socio-economic baselines and development, and to further the development of effective practical adaptation policy and options for health in Africa, including cross sectoral links. 1 factors that will affect health outcomes, including the movement of people and goods, changes in land use and economic development influence their prevalence. In considering the future effects of climate change on health, it is therefore also necessary to consider future socio-economic baselines, including how these might reduce (as well as increase) future burdens. Background: Health Impacts of Climate Change in Africa Climate change is likely to affect human health, either directly such as with the effects of heat or flood injury, or indirectly, for example, through the changes in the transmission of vector-borne diseases or through secondary effects following flood events. There are also a wider set of indirect impacts from climate change on health, which are linked to other sectors (e.g. water quality, food security, etc). Existing Studies of the Health Impacts of Climate Change One of the most widely cited studies on the potential health impacts of climate change is the WHO global burden of disease report and the climate change chapter (McMichael et al, 2004iii). The report estimated the current and likely future effects of climate change from exposures to extreme weather events, such as heat waves and deaths and injuries associated with floods, the distribution and incidence of malaria, the incidence of diarrhoea, and malnutrition (via effects on yields of agricultural crops). Previous work (e.g. such as IPCC AR4 i and other reviewsii) has identified a potentially wide range of health effects from climate change in Africa. These conclude that Africa faces the highest global health burdens of climate change, from: The shift or increase in incidence of malaria, diarrhoea, schistosomiasis, as well as other vector borne diseases such as dengue fever, yellow fever, encephalitis (tick) and Trypanosomiasis (Tsetse fly), noting that these changes could be positive for some regions or time periods. Heat related mortality and morbidity. Increased incidence of deaths/injuries/disease linked to the coastal and inland flooding, as well as secondary events from these floods associated with water borne diseases, e .g. cholera, typhoid, dysentery. Indirect effects associated with changes in the risk of under-nourishment and malnutrition, and wider effects between economic and development levels and health. Whilst climate change will bring some health benefits, such as lower cold-related mortality and greater crop yields in temperate zones, on a global scale these are likely to be outweighed by increased rates of other diseases, particularly infectious diseases and malnutrition. These are a particular issue for Africa, and the study identifies much higher relative health burdens for the continent. For the analysis, McMichael et al separate the potential risks between two geographical regions of Africa, labelled D (primarily North and West Africa) and E below (primarily East and Southern Africa). These health changes will have economic consequences through incurring medical treatment and health protection expenditures, and the potential loss of work productivity. In addition, there are likely to be associated changes in welfare from the pain and suffering associated with adverse health outcomes. These effects can be expressed in economic terms when captured by measures of willingness to pay to avoid them. The study estimates that the total deaths from current climate change (year 2000) are 55 thousand deaths per year for Africa (with 19 and 36 thousand deaths/year for the two regions respectively). The total deaths from current climate change are equivalent to 67 and 109 deaths/million population for regions D and E respectively. It also estimates the current total disease burden from climate change at 1.9 million DALY per year for Africa (0.6 to 1.3 million DALY/year for the two regions), primarily from Assessment of these health effects is uncertain, due to the multiple climate parameters involved in many of the impacts. It is also complicated by changing socio-economic factors and other 2 malnutrition, diarrhoea and malaria. This is equivalent to a total disease burden of 2186 and 3840 DALY/million population. These are shown below. Adaptation A wide range of measures have been identified in the health sector to adapt to climate change impacts. Most of these build on well-established public health approaches and are therefore theoretically easy to implement. They include general measures such as: Table 1. Estimated mortality (000s) and Disease Burden (000s of DALYs) attributable to climate change in the year 2000, by cause and sub-region. Mortality (000s) Region DALY (000s) D E D E Malnutrition 8 9 293 323 Diarrhoea 5 8 154 260 Malaria 5 18 178 682 Floods 0 0 1 3 Strengthening of effective surveillance and prevention programmes. Sharing lessons learned across countries and sectors. Introducing new prevention measures or increasing existing measures. Development of new policies to address new threats. Cardio-vascular 1 1 All Cause 19 36 626 1267 Examples of more specific measures include: Total deaths/DALY per mill pop. 67 109 2186 3840 Behavioural strategies to physiological acclimatisation. Vaccination programmes. Technical measures, including control of disease vectors. Institutional mechanisms, including earlywarning systems and emergency planning / disaster preparedness schemes, training, communication, monitoring and surveillance, and research Source McMichael et al (2004). Key for regions: D. Algeria, Angola, Benin, Burkina Faso, Cameroon, Cape Verde, Chad, Comoros, Equatorial Guinea, Gabon, Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Madagascar, Mali, Mauritania, Mauritius, Niger, Nigeria, Sao Tome and Principe, Senegal, Seychelles, Sierra Leone, Togo. E. Botswana, Burundi, Central African Republic, Congo, Côte d’Ivoire, Democratic Republic of the Congo, Eritrea, Ethiopia, Kenya, Lesotho, Malawi, Mozambique, Namibia, Rwanda, South Africa, Swaziland, Uganda, United Republic of Tanzania, Zambia, Zimbabwe. Examples of associated costs include (Kovats, 2009): These impacts are projected to increase further in the future from increasing climate change, as shown in the table below. By 2030, the relative risk will have increased between 1 and 1.83. Costs of improving or modifying health protection systems to address climate change, for example, expanding health or vector surveillance systems. This includes the costs associated with building new infrastructure, training new health care workers, increasing laboratory and other capacities, etc. Costs of introducing novel health interventions (e.g. heat wave warning systems). Additional costs for meeting environmental and health regulatory standards (e.g. air quality standards, water quality standards). Costs of improving or modifying health systems infrastructure, for example, adapting hospitals to hotter summers. Table 2. Increase in relative risk by 2030, relative to the baseline climate, by cause and sub-region (‘high’ estimates shown) D E Malnutrition 1.02 1.02 Diarrhoea 1.08 1.08 Malaria 1.02 1.14 Floods 1.66 1.66 Cardio-vascular 1.007 1.005 accompany Source McMichael et al (2004). Note full study includes a low, medium and high estimate 3 Occupational health costs, for example, measures to prevent the adverse impacts of increased heat load on the health and productivity of workers. Costs of health research to address to reduce the impact of climate change, for example, evaluation studies. Table 3. Projected excess incident cases (in thousands) in 2030 relative to 1990 level in Africa for two scenarios of GHG concentrations. Incident cases 000s in 2030 750 ppmv Costs of preventing the additional cases of disease due to climate change as estimated by scenario-driven impact modelsiv. Estimates of the aggregate costs associated with adaptation to climate change-induced health risks in Africa are presented in the following sections. 550 ppmv Disease Africa Global Africa Global Diarrhoeal 50,343 131,980 41,952 113,073 Malnutrition 437 4,673 328 3,097 Malaria 17,703 21,787 14,170 17,369 Source UNFCCC 2007 It is possible to use these estimates to scale the global adaptation costs to Africa, (i.e. assuming equal incremental cost per case). The results are shown in Table 4 below. Aggregate Costs of Adaptation for Africa A number of recent studies have estimated the costs of adaptation for Africa. These are summarised below. Table 4. Estimation of additional financial flows (US$ Million / year) needed in Africa, in 2030 relative to 1990. 1) UNFCCC (2007) 750 ppmv 550 ppmv % Africa of global cases 38% 37% Global finance $Mill/yr 2,235 1,923 853 713 9% 11% 92-122 61-81 9-11 6-9 81% 82% Global finance $Mill/yr 2,173-3,033 1,773-2,418 The UNFCCC study on Investment and Financial Flows to address Climate Change (2007v) and the related journal paper (Ebi, 2008, see below) estimated the total global adaptation costs to climate change impacts (all sectors) at $50 to $170 billion/year by 2030, of which $28 to $67 billion/year was anticipated in developing countries (Non-Annex1 parties). Diarrhoeal disease The study estimated global health adaptation costs (the increase in global financial flows) at between $3.8 and $5.4 billion, depending on the emission scenario, but did not produce values by region. Africa $Mill/yr Africa $Mill/yr 1766 - 2464 1446-1752 The study was based on the projected increases in estimated cases of diarrhoeal disease, malnutrition and malaria globally shown in Table 3, which includes a split for Africa. Total for Africa Mill $US/yr 2627 - 3328 2166-2474 Africa $Mill/yr Malnutrition % Africa of global cases Global finance $Mill/yr Malaria % Africa of global cases This implies costs of adaptation of $2.2 to $3.3 billion per year by 2030 for Africa, primarily for malaria and diarrhoeal disease. The numbers exclude public health infrastructure investment associated with health, and so was considered an underestimate. This shows that a very large proportion of the global impacts of climate change on health (particularly for malaria and diarrhoeal disease) will arise in Africa. 4 Table 5. Additional Annual Costs of Health Adaptation in Alternative Climate Change Scenarios per Geographical World Region 2000-2030 (Million US$, 2000). The adaptation costs above are estimated based on the costs of prevention for additional cases of disease. The estimates were based on underlying costs of prevention, based on Disease Control Priorities in Developing Countries (World Bank, 2006vi), e.g. Africa For diarrhoeal disease, it includes breastfeeding promotion, rotavirus and cholera immunisation and improvement in water supply and sanitation. For malaria, it includes insecticide-treated bed-nets plus case management with artemesin-based combination therapy, as well as indoor residual insecticide spraying. Climate scenario S550 S750 UE Diarrhea 633-1,334 756-1,646 954-2,026 Malaria 1,283-3,718 1,567-4,595 2,508-7,222 Total 1,916-5,052 2,323-6,241 3,462-9,248 Source: Markandya and Chiabai (2009) The estimated annual costs of adaptation for these two disease burdens in Africa are $1.9 to 5.0 billion (S550), $2.3 to 6.2 billion (S750) and 3.4 to 9.2 billion (unlimited), emission scenario), with malaria accounting for approximately twothirds of the total and diarrhoea comprising the remainder. Malnutrition results (not shown) were found to be only 1% of the totals. In the full study, the majority of global malaria costs were estimated for Africa. For malnutrition, it includes breastfeeding promotion, child survival programmes, nutritional programmes, growth monitoring. These are based on the most cost-effective measures (cost per DALY averted) and includes measures that would have wider benefits. For example, for diarrhoeal disease, the World Bank study found that more general water and sanitation facilities (e.g. hand pumps, basic sanitation) were often very cost-effective and were essentially no regret actions as they increased development and had health benefits (even without climate change). The estimated figures do not include the full range of costs including infrastructure, equipment and health care personnel costs, training costs and maintenance costs. For diarrhoea, the costs included in the analysis are those related to immunization programs and improvement in water supply and sanitation. For malaria, the estimated measures include provision of impregnated bed nets, indoor spraying, and preventive treatment in pregnancy, besides the specific required therapies. 2) Ebi (2008) / Markandya and Chiabai (2009) Ebi (2008vii) extends the UNFCCC work above, and her results are utilised in a synthesis review by Markandya and Chiabai (2009viii) on health adaptation costs that disaggregates the estimates on a sub-regional basis, and thus includes specific values for Africa. The analysis follows the three scenarios in the UNFCCC and Ebi study: Markandya and Chiabai also cite another study from Van Rensburg and Blignautix who estimated the additional health care costs in year 2025 due to an increase in the incidence of malaria as a result of climate change in Southern Africa. 1) Unlimited Emissions; 2) CO2 Stabilisation at 550 ppm by 2170 This study focuses on prevention and treatment costs of malaria for different levels of risk, and future projections of population, and estimates total annual costs (upper bound) for prevention and treatment of malaria in South Africa at around US$ 3,800 million in 2025 (2000 US$), representing 3% of GDP per capita. This is based on an intervention program from 2000 to 2025. They also report estimates for Botswana and 3) CO2 Stabilisation 750 ppm by 2210. The additional annual costs of adaptation for malaria and diarrhoea for Africa are reported inTable 5. Under each emission scenario, the range of estimates is determined by the range of relative risk factors for each disease, as identified in McMichael et al (2004). 5 Namibia, where the figures are lower due to smaller populations (US$ 125 million in Botswana; US$ 177 million in Namibia), with percentage of GDP/capita estimated at around 4.5% for the latter. 3) Parry et al (2009) (IIED/Grantham): Assessing the Costs of Adaptation to Climate Change One of the most recent reports is the IIED/Grantham Institute study on assessing the costs of adaptation (Parry et al, 2009x). This is primarily a review of the numbers cited in the earlier UNFCCC (2007) study (see above). It highlights that the UNFCCC study, and other similar ones, have a number of deficiencies. It also undertakes a re-assessment of the UNFCCC study, and on the basis of this, suggests these previous numbers are substantial underestimates. The cost of the interventions remains constant from 2000 to 2030. Intervention costs may reduce, or new ones (vaccinations) may emerge, but burdens may change from resistance to malarial treatment. The underlying interventions are not 100% effective, and there will be residual impacts. The estimates of future health impacts are dependent upon development pathways, which make the presentation of costs difficult as they have to be contextualised within specific sets of scenarios and assumptions. Estimates for malnutrition incorporate the assumptions for technological adaptation in the agricultural sector, and the estimates for diarrhoeal diseases assume that the disease is reduced as countries get richer. Parry et al also highlight the current ‘level of health service provision’ and the existing adaptation deficit in regions such as Africa. Finally, it reports that National Adaptation Programmes of Action typically address current disease control issues, usually for malaria. Financial requests for specific projects range from $22,000 to $600,000 for disease-control, earlywarning information systems to $7 million for a major project in Bangladesh. It also notes that other sectoral adaptations projects such as rainwater harvesting and improving food security will have health benefits. The Parry et al study highlights that the health sector was only partially covered. In health, just three impacts were included - the effect of climate change on diarrhoeal diseases, malaria and malnutrition in low and middle-income countries only. Other disease burdens were not considered due to insufficient estimates: thus, the estimated health adaptation costs are likely to be significantly underestimated. The authors also emphasise that investment alone is unlikely to be sufficient to improve health in developing countries, as many other barriers remain, such as poor governance, inequality and low adaptive capacity. 4) World Bank EACC The Economics of Adaptation to Climate Change (EACC) Study (World Bank, 2009xi) estimates the costs of adaptation – in $Billion/year over future decades in developing countries through to 2050. It has some similarities to the previous global studies, but also marks a significant advance forward because it works with a more explicit economic framework. The study also uses country specific data sets as well as climate model output, using a range of climate projections reflecting the range of model projections for temperature and precipitation, and also accounts for future socioeconomic development. The Parry et al review considers that the health adaptation costs reported in UNFCCC (2007) to be significant underestimates, as they only includes 30-50% of extra disease burden from climate change in developing countries. A number of further methodological issues were highlighted in the study: The UNFCCC estimates assume constant number of annual cases over time, despite population increasing through to 2030 (thereby implying that incidence decreases). This is plausible with increasing development, but is not explicit. The study assesses adaptation costs as the costs of initiatives needed to restore welfare to levels prevailing before climate change along the 6 projected development baseline (note that this assumption has been the subject of considerable comment1). diarrhoea and updates the dose-response functions used to compute the relative risk for malaria. The study focuses on planned (public sector) adaptation costs. It primarily considers “hard” options involving engineering solutions in all sectors (except extreme events, where the costs of adaptation where based on education). It also considers different aggregation rules in accounting for the positive as well as negative effects of climate change and adaptation costs 2. These changes significantly reduce the adaptation costs compared to Ebi (2008), reported above. The total cost of preventing or treating the additional cases is the product of the additional cases and the average cost of preventing or treating additional cases. The average cost of averting additional cases of each disease is based on updated treatment costs from the Disease Control Priorities in Developing Countries Project (DCCP2) for the cost-effective methods of treatment. Two climate scenarios are adopted in the study. Under the drier scenario, the global costs of adaptation for developing countries for all sectors over the period 2010 – 2050 are estimated at US$78 billion per year. Under the wetter scenario, the costs are higher at US$90 billion. As with the UNFCCC study, the World Bank assessment considers conventional public health adaptation activities, with a focus on malaria and diarrhoea. Adaptation costs were estimated for these two diseases in each country for each of 16 demographic groups. The costs are determined by the baseline incidence of disease without climate change, plus the additional risk that climate change results in. Costs were derived from the unit cost of preventing and treating additional cases of the disease. Note that unlike Ebi (2008) above, who fixed the baseline incidence of disease, the EACC study incorporates a future baseline global burden of disease based on WHO GBD projections to 2030 plus extensions through 2050. This implies a reduction in the incidence, and in incidence rates, in the future. The analysis also incorporates updates and revisions to the unit cost of prevention and treatment for malaria and For diarrhoeal diseases, they are based on breastfeeding promotion; vaccination against rotavirus, cholera, and measles; and improvements in water supply and sanitation. For malaria, they are based on use of insecticide-treated bednets; case management with artemisinin-based combination therapy plus insecticide-treated nets and with insecticide-treated nets plus indoor residual spraying; and case management with artemisinin-based combination therapy plus insecticide-treated nets plus indoor residual spraying plus intermittent presumptive treatment in pregnancy. The health adaptation costs are found to be a very low proportion of total adaptation costs, at only $1.5 to 2 billion/year globally. However, most of these were in Africa, with estimated costs of $0.6 to 1.0 billion/year. The values for Africa, disaggregated by time-period, are shown in Table 6 below. The study reports a decline in global adaptation costs over time, even though the risks increase. In Sub-Saharan Africa, the share of malaria cases increases from the current 7–12 percent to 12–19 percent by 2050, depending on the climate scenario and dose-response functions. Similarly, the share of diarrhea cases increases from the current 2–4 percent to 7–8 percent by 2050, depending on the climate scenario. 1 There are two issues here. First, it is questionable whether this degree of adaptation is actually physically possible. Other literature (e.g. Parry et al. 2009) above indicates that adaptation might only be able to reduce economic costs by around 50% in developing countries, thus leaving considerable residual impacts. Second, it assumes that such a level of adaptation is (economically) rational - which may be questioned, and leads to a potential overestimation of costs. 2 For some sectors, in some regions, climate change leads to a potential economic benefits – the study applied different rules when netting these against adaptation costs, by country or region. The main results are presented as X-sums, where positive and negative items are netted within countries but not across countries. 7 Table 6. Average annual adaptation cost for human health—preventing and treating malaria and diarrhoea, by region and decade, 2010–50 ($ billions a year at $2005 prices, no discounting) Time period Middle East and North Africa SubSaharan Africa Total Africa 5) Grantham Institute (2009) The Grantham Institute for Climate Change produced a fact-base on climate change in Africa, including impacts, required actions and adaptation costs, presented at the CAHOSCCxii. The study derives estimates of health adaptation costs in Africa from the UNFCCC (2007) study, and thus estimates a value of $3 billion per year in incremental costs by 2030. It also highlights health concerns in relation to access to water, and the effects of extreme events (flood and droughts). NCAR 2010-19 0.1 0.9 1.0 2020-29 0.1 0.7 0.8 2030-39 0.1 0.7 0.8 2040-49 0.0 0.8 0.8 CSIRO 2010-19 0.1 0.6 0.7 2020-29 0.1 0.6 0.7 2030-39 0.0 0.6 0.6 2040-49 0.0 0.6 0.6 It highlights opportunities for health adaptation include improving forecasting and diagnostic capabilities, broadening access to health services to address diseases, and applying greater resources and co-ordination in dealing with humanitarian disasters. Source: World Bank, 2009.X-sums. It stresses that broader access to primary and secondary healthcare is a development priority that forms the basis for adaptation action in the sector. Further that health is closely linked to development and adaptation efforts in other sectors. Finally, that further research is required on the health impacts of climate change in Africa, including for other disease burdens, transparency of adaptation costs, and evidence on the effectiveness of adaptation. This reduction occurs because of rapid declines in the baseline incidence of these diseases and deaths due to development – indeed, these assumptions have a very large effect on the results. H owever, the rates of decline are lower (in relative terms) in Africa than other regions. As a result, by 2050 more than 80 percent of the health sector adaptation costs are borne by Sub-Saharan Africa. It also highlights the need for integrating climate change information in health planning and decision-making to increase resilience to climate change. The report also highlights that other health adaptations are included in other sectoral estimates and not included in health, to avoid double counting. These include the additional cost of climate-proofing health sector infrastructure; the cost of reducing additional cases of malnutrition (agriculture); and the adaptation cost related to extreme weather (floods and droughts). Country Studies of the Costs of Adaptation for Health In contrast to the high-level, top-down global and regional studies reported above that primarily serve to scope out the scale of potential aggregate costs, a number of recent and on-going studies adopt the national level of analysis. These studies benefit from a greater degree of contextualisation and are designed to inform the design of adaptation strategies for national and sub-national authorities. A sample of these studies is outlined below. Nonetheless, the study judges that the adaptation costs it reports to be under-estimates because they do not include many other infectious diseases such as dengue, heat stress, population displacement, and increased pollution and aeroallergen levels. 8 1) Kenya – Economics of Climate Change and Adaptation to Malaria The additional economic burden of endemic malaria disease in the 2050s was estimated to be over $ 86 million annually (for population levels of 2009, with arrange of $48 to 99 million annually across the temperature projections) based on the clinical and economic malaria burden. These welfare cost estimates increased to a range of $144 to 185 million annually when disutility costs (e.g. discomfort pain and inconvenience measured by survey-based willingness to pay estimates) were taken into account. The Regional Economics of Climate Change Studies (RECCS) – commonly known as ‘miniSterns’ have assessed the economic costs of climate change and mitigation, as well as the economics of adaptation. The study for Kenya (SEI, 2009xiii) included analysis of the potential impacts and costs of adaptation for malaria3. The current burden of climate-sensitive disease – particularly malaria - is high in Kenya. It accounts for an estimated 30% of all out-patient consultations and 19% of all hospital admissions. Of the total population, around 23 million (70%) are reported to live in areas at risk of malaria, including 3.5 million children under 5: consequently the disease is a major contributor to under 5 child mortality. The estimation of the malaria’s economic burden resulting from climate change is sensitive to adult mortality resulting from epidemics. The economic value of life years lost resulting from epidemics is estimated at 89 million annually (population 2009, and minimum wage 870$ per year), when predicted mortality is annualized until 2055. Contrary to the declining “epidemic costs” when malaria shifts to less densely populated areas, the “endemic costs” are long lasting, and continue to rise. A gradually increasing endemic burden of malaria will result in a higher health budget required for malaria control. The study applied a malaria risk model based on altitude, to assess at the national scale the impact of future climate change. The model projected that by 2055, as a result of the central average climate warming (2.3ºC) across the projections, the population annually affected by malaria in rural areas over 1000 metres (which comprises 63.5% of the population of Kenya) would increase by up to 74% (in absence of adaptation). Malaria and poverty are intimately linked and in Kenya the lower socio-economic classes (household income < $ 50 per month) bear the brunt of the disease. Thus, an effective way to avoid the consequences of climate change is to improve living standards, thereby enhancing entitlement and affordability of adequate healthcare and prevention. However, the increasing economic and psychological burden resulting from aggravated malaria is likely to undermine the population’s capacity to cope with the disease. The report also presents results for increases in average temperature of 1.2 and 3°C – the range across the model projections (from ten models) – leading to increases from 36% to 89%. Based on current population levels and incidence rates (2009), an extra 5.8 million people were estimated to be affected in the 2050s (with 2.8 to 7.0 million people across the range of temperature projections), with excess mortality of 15,700 people per year, of which 11,400 are below the age of 15. Nevertheless, this study assessed only direct malaria control initiatives and costs based on: 1) Quick and effective treatment 2) The provision of prevention and treatment of pregnant women The economic burden resulting from projected climate change on endemic malaria in terms of direct and indirect costs was estimated. Where morbidity is concerned, treatment and costs can be viewed as remedial adaptation activities. 3) The use of insecticide treated nets (ITNs) in high risk communities. In areas of existing malaria there would be no change required in policy, though it is recognized that additional infrastructure and staff would be 3 London School of Hygiene and Tropical Medicine: Menno Bouma and Sari Kovats, and Alistair Hunt, Metroeconomica. 9 required to address the increased health care demands. In contrast, in areas which become endemic with the malaria lapse rate shifting to higher altitudes, new facilities will have to be established and new staff trained and employed. However, the cost of additional health care facilities and staff is not assessed in this report. in reduced cost-benefits, particularly in view of the much more expensive ACTs which now have replaced cheaper chloroquine. As every episode requires confirmation or exclusion of malaria, rapid diagnostic tests are important. The study estimated the cost for IRS coverage in low endemic and potential epidemic areas (shifting to higher altitudes due to climate change). Distribution of bednets for the additional population at risk. Additional medical tests for the new population at risk. Preventive treatment of pregnant women. Treatment (direct) costs for additional malaria cases. There is more extensive scope to prevent the economic and societal impact of epidemic malaria. With increasing ambient temperatures large numbers of people, not previously exposed, can be protected from the worst consequences of epidemic malaria. In recent years Kenya has started to use Indoor Residual Spraying (IRS) in highland areas to control malaria in low endemic areas and to prevent epidemics. It should be borne in mind that this initiative for IRS followed the rise in malaria since the 1980 and associated epidemics. It should be seen as an adaptation when temperature as a driver is accepted. As the economic costs associated with epidemics are highest in the next 2 decades due to the altitudinal distribution of the population, and will decrease over time, adaptive initiatives to protect the population from epidemics appears a high priority. The total annual costs were estimated at around $23 million/year (central value, with a range across the projections). The main costs for diagnosis and prevention ($ 15 million) is associated with IRS. Annual cost for treatment of additional cases is estimated at$ 8 million. 2) Ghana – NEEDS project Kenya’s malaria control initiatives also include the Improvement of epidemic preparedness and response in epidemic-prone areas. MEWS. Malaria Early Warning Systems, monitoring environmental risk parameters and early detection. Pregnant Women. The existing policy for pregnant women in endemic areas is treatment (SP) 2 times (ITPt) during pregnancy to reduce the adverse effects of malaria. There is increasing support for all pregnant women in low endemic and epidemic areas to be targeted and the study considered this policy over the “endemic intercept”, covering the area of potential periodic epidemics, parallel to the proposed area of ITNs (see figure). However, during perceived high risk years (e.g. during warmer El Niño years), this policy can be adapted to take interannual variability into account. The National Economic, Environment and Development Study (NEEDS) for Climate Change Project4 was launched by the UNFCCC secretariat launched early in 2009. It is providing technical assistance from the secretariat to conduct financial needs assessments. A number of countries have joined the project, including Egypt, Ghana, Mali and Nigeria. Some results for the health sector are available from Ghana, which assessed how to reduce the burden of climate-sensitive health determinants and outcomes and how to reduce the risk of heat stress. Adaptation options considered include improved monitoring systems to detect the arrival or presence of infectious diseases, and warning systems to warn the population about heatwaves. Diagnostic Tests (RDT). In high endemic areas, most treatment is on presumptive basis. In low endemic and epidemic areas false positive clinical malaria diagnosis results 4 http://unfccc.int/2807.php. The project was launched in response to SBI 28 mandate for the secretariat, to provide, upon request, information to non-Annex I Parties on the assessment of financing needs to implement mitigation and adaptation measures 10 The study estimates the incremental cost of adaptation in the health sector to be USD 350 million by 2020 and USD 352 million by 2050. the future (albeit simply, without assumptions of changes in development, baseline rates, etc), linked to assumed changes in drought frequency and severity (again, without any socio-economic changes). In addition, the study in Ghana assessed public and private expenditures for malaria treatment, which forms about 50 per cent of outpatient care in public hospitals5. Whilst public expenditure is used to run health facilities that treat malaria, private expenditure covers the cost of treatment. The study estimated that by 2030, under the moderate climate change scenario, a 10 percent decrease in average rainfall was projected to cause a 60 percent increase in the proportion of the population under food stress, and significant increases in the number of cases of cholera and dysentery. Trachoma cases were estimated to potentially double in number. The high climate change scenario would worsen this impact. The additional investment in controlling malaria that will be required is estimated to be USD 7.6 million in 2020 and USD 7.54 million in 2050. These estimates do not include the costs of setting up new infrastructure (such as new hospitals). The study analyzed measures to protect against drought-related health risks cases. Measures were classified as prevention (such as cholera vaccinations) or treatment (such as oral rehydration therapy for cholera patients). The costs of each measure were estimated, including the costs of various components of the programme and the likely efficacy of the intervention. 3) Tanzania - ECA The Economics of Climate Adaptation Working Group (ECA, 2009xiv) undertook case studies on the costs of climate change risks and costs (and benefits) of adaptation. The level of application is small scale and single sector at the sub-national level and the have a useful focus on the shortterm adaptation costs and benefits. Costs of medication included purchase, shipping, storage and distribution of storage, as well as the overhead costs such as training and salaries. A case study based in Tanzania focused on two specific drought impacts that are of particular concern for the central region of Tanzania, one of which was human health, which is threatened by the spread of cholera and other infectious diseases caused by shortages of fresh water. The other case study was on power generation. The estimated disease burden that would be prevented with each measure was estimated, discounted by the penetration rate - the proportion of the population that could be reached - and the efficacy rate (%). Applying this information, the study ranked a number of potential strategies on the basis of cost per effective case, considering: The study identified drought-related health impacts as: malnutrition, trachoma (an infectious eye disease that causes blindness), dysentery, cholera, and diarrhoea. While recognizing that many factors drive disease prevalence and occurrence, the study focused on isolating a single driver. It correlated historical rainfall data with historical numbers of cases of key diseases and with crop supply and demand imbalances (as a proxy for malnutrition). This analysis allowed a prediction of the additional number of people affected by those diseases in 5 Health expenditure on malaria in Ghana comes from both the public and private sectors: 11 Educational programmes to encourage good hygiene and sanitation Educational program to encourage breastfeeding Administration of Oral Rehydration Therapy Targeted administration of antimicrobials To build basic covered wells with pipes Rainwater harvesting (1,000L and 2,500L and larger schemes 20,000-45,000L for schools and other buildings) To build ventilated pit latrines Administering of zinc supplements Building of 100 MM boreholes + pump + engine + 40,000L holding tank + distribution pipes Mechanical filtration of water Chemical filtration of water Cholera vaccination NEEDS project, and from the UNDP Investment and Financial Flow Studies in Africa. Conclusions and Research Priorities The study found the educational programmes and water quality improvements (rainwater harvesting) were highly cost effective measures, as shown in the figure below. This paper provides an overview of the literature currently available on the estimation of adaptation costs associated with climate change-induced health risks in Africa. Cost-effectiveness ranking of alternative measures to reduce climate change-related health impacts in Tanzania. Initial estimates have been reviewed at the scale of the African continent as a whole and are designed to inform international negotiations on mitigation and adaptation policy, and in particular, the possible scale of financial transfers to the continent. Because of the scale of the aggregation, these estimates are necessarily crude. Because of the scope of their coverage, they are also partial. These continent-scale studies have subsequently begun to be complemented by a growing series of national scale studies that better reflect local resource costs and specific national health priorities. However, even with these studies, the uncertainties surrounding the climate scenarios and impact estimation, as well as the effects of socio-economic change, ensure that the resulting adaptation cost estimates remain open to debate. Consequently, the following research priorities are identified: Source ECA, 2000. 4) Other studies Additional information will emerge later in 2010 from the World Bank country studies on the economics of adaptation, from the UNFCCC 12 Broadening the coverage of disease types considered, both in top-down or national scale studies; Developing the sophistication of the use of socio-economic baselines, mapping these against countries’ individual development strategies; Broadening the range of adaptation options considered to include more behaviouralbased measures (e.g. domestic and international migration) and measures that are cross-sectoral in nature but which have significant influence on health. The AdaptCost Project The AdaptCost Africa project, funded by United Nations Environment Programme (UNEP) under the Climate Change – Norway Partnership, is producing a range of estimates of the financial needs for climate adaptation in Africa using different evidence lines. The study aims: To help African policymakers and the international climate change community to establish a collective target for financing adaptation in Africa. To investigate estimates to adapt to climate change and improve understanding of adaptation processes. This will provide useful information for planning adaptation programmes and support decision-making by national governments and multi- and bilateral donors by allowing them to better compare projects and policies on their economic grounds. In the process, countries will also gain a better understanding of their adaptation investment requirements, and build a stronger basis for articulating their financing priorities and attracting capital. This briefing note was prepared by Paul Watkiss and Alistair Hunt. 13 Footnotes and References http://www.uneca.org/apf/documents.asp xiii SEI (2009). The Economics of Climate Change in East Africa. Downing, T., et al. Report for DFID and DANIDA. Available at http://kenya.cceconomics.org/. (Accessed January 2010). xiv ECA (2009). Shaping Climate-resilient Development a framework for decision-making. A report of the economics of climate Adaptation working group. Economics of Climate Adaptation. Available at: http://www.swissre.com/resources/387fd3804f928069929e92b 3151d9332ECA_Shaping_Climate_Resilent_Development.pdf (Accessed January 2010). i Boko, M., I. Niang, A. Nyong, C. Vogel, A. Githeko, M. Medany, B. Osman-Elasha, R. Tabo and P. Yanda, 2007: Africa. Climate Change 2007: Impacts, Adaptation and Vulnerability. Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change, M.L. Parry, O.F. Canziani, J.P. Palutikof, P.J. van der Linden and C.E. Hanson, Eds., Cambridge University Press, Cambridge UK, 433-467. ii J. C. Nkomo, Ph.D. University of Cape Town, South Africa, A. O. Nyong, Ph.D. University of Jos, Nigeria, K. Kulindwa, Ph.D. University of Dar es Salaam, Final Draft Submitted to The Stern Review on the Economics of Climate Change July, 2006. iii McMichael, A.J., et al. (2004). Climate change. In: Ezzzati, M., Lopez, A.D., Rodgers, A., and Murray, C.J., (eds) Comparative quantification of health risks: global and regional burden of disease due to selected major risk factors, Vol 2. World Health Organisation, Geneva, 1543–1649. iv This can also be considered as ‘damage’ or impact costs, rather than adaptation costs. v UNFCCC (2007). Investment and financial flows relevant to the development of an effective and appropriate international response to Climate Change (2007). United Nations Framework Convention on Climate Change vi World Bank, 2006: Disease Control Priorities in Developing Countries. The World Bank. vii Ebi, K.L. (2008) ‘Adaptation costs for climate change-related cases of diarrhoeal disease, malnutrition, and malaria in 2030’, Globalization and Health, vol. 4, no. 9. viii Markandya, A. and A. Chiabai, Valuing Climate Change Impacts on Human Health: Empirical Evidence from the Literature. Int. J. Environ. Res. Public Health, 2009. 6(2): p. 759-786. ix Van Rensburg, J.J.J.; Blignaut, J.N. The Economic Impact of an Increasing Health Risk due to Global Warming. In Proceedings of the Forum for Economics and Environment Conference, Cape Town, South Africa, 2002. x Martin Parry, Nigel Arnell, Pam Berry, David Dodman, Samuel Fankhauser, Chris Hope, Sari Kovats, Robert Nicholls, David Satterthwaite, Richard Tiffin, Tim Wheeler (2009) Assessing the Costs of Adaptation to Climate Change: A Review of the UNFCCC and Other Recent Estimates, International Institute for Environment and Development and Grantham Institute for Climate Change, London. xi World Bank (2009). The Costs to Developing Countries of Adapting to Climate Change: New Methods and Estimates. The Global Report of the Economics of Adaptation to Climate Change Study. Consultation Draft. September 2009. Available at: http://siteresources.worldbank.org/INTCC/Resources/EACCRe port0928Final.pdf (Accessed January 2010) xii African Partnership Forum and Conference of African Heads of State and Government on Climate Change (CAHOSCC), at the special session on climate change. September 3rd 2009, Addis Ababa. http://www.uneca.org/apf/index.asp Grantham Institute (2009). Possibilities for Africa in global action on climate change. Executive Summary. July 2009 Documents available at: 14