2002 World Congress of Environmental and Resource Economists

Acid rain falls on 30 percent of the People's Republic of China (PRC), according to official estimates. The resulting environmental damage is acute in parts of the Yangtze River Valley, such as Anhui Province in central PRC. In 2001, the Asian Development Bank (ADB) approved a loan to finance a project in Anhui Province that would promote cleaner production, improve energy efficiency, and reduce waste. The project is expected to reduce the frequency of acid rain by half, and reduce carbon dioxide emissions by 476,800 tons per year. The estimated economic internal rate of return on the components of the project ranges from 14 to 28 percent and they are based strictly on improving the efficiency of manufacturing process. Surprisingly, the economic analysis did not include quantified or monetized externality based environmental benefits. This paper will use the acid rain control project to illustrate the role of ADB in environmental protection in Asia and the Pacific, and in green house gas reduction. The paper will also use the project to illustrate the role of environmental economics in the economic analysis of projects at ADB, and to suggest ways to better integrate environmental economics into both development planning and the analytical process.



	Paper Title:	The Role Of Environmental Economics At The ADB
	Presenting Author:	David Dole (Asian Development Bank)
	Coauthor 1:	Piya Abeygunawardena
	Coauthor 2:
	Coauthor 3:
	Abstract:	Acid rain falls on 30 percent of the People's Republic of China (PRC), according to official estimates. The resulting environmental damage is acute in parts of the Yangtze River Valley, such as Anhui Province in central PRC. In 2001, the Asian Development Bank (ADB) approved a loan to finance a project in Anhui Province that would promote cleaner production, improve energy efficiency, and reduce waste. The project is expected to reduce the frequency of acid rain by half, and reduce carbon dioxide emissions by 476,800 tons per year. The estimated economic internal rate of return on the components of the project ranges from 14 to 28 percent and they are based strictly on improving the efficiency of manufacturing process. Surprisingly, the economic analysis did not include quantified or monetized externality based environmental benefits. This paper will use the acid rain control project to illustrate the role of ADB in environmental protection in Asia and the Pacific, and in green house gas reduction. The paper will also use the project to illustrate the role of environmental economics in the economic analysis of projects at ADB, and to suggest ways to better integrate environmental economics into both development planning and the analytical process.
	Link to paper:	http://weber.ucsd.edu/~carsonvs/papers/5097.pdf

	Session / Day / Time	2G / Monday / 10:15 - 11:45 am

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