DEREL – Development of Environmental and Resources Engineering Learning
Assessment of Negative Externalities
in Environment
Case of Albania
(Environmental Externalities)
Aida GJIKA
Faculty of Economy, University of Tirana, Albania
TEMPUS DEREL seminar in Novi Sad, 03-04 April, 2014
Outline of the presentation:
• Theoretical aspects regarding externalities in
environment
• Legal Framework
• Assessment of the environmental externalities
in Albania
• Evaluation
• Conclusion
Externality
• The costs and benefits which arise when the social or
economic activities of one group of people have an
impact an another, and when the first group fail to fully
account for their impact (Mas-Colell et al. 1995; ExterneE, 1995)
• Welfare economists aim to maximize individual and
social welfare through optimal resource allocation
• A problem of Market failure (not efficient way of
organization)
• Internalize costs
Legal Framework (1/3)
• No clear and well defined legal framework ( the
right to be informed about environment)
• Implementation, but only the legal framework
regarding taxes and fees has been improved
• the differences that there are may lead to difficult
choices with respect to the allocation of scarce
resources.
• The legal and institutional gaps at the national
and local level
• However, a number of agreements:
Legal Framework (2/3)
– Signed 7 International Conventions for different
environmental issues
– Created 7 Developmental Strategies for different
aspects of the environment
– 20 laws approving different International
Protocols, Agreements and Amendments
– Over 20 amendments of existing laws
– Over 80 Council of Ministers decisions related
directly to environment
– Over 20 Directives and over 5 Regulations
Legal Framework (1/2)
• Now the Ministry of Environment, Forests and Water
Administration (MoEFWA)
• Unfortunately, information about impacts of environmental
and its degradation is limited
• No regular data and not updated (2011)
• Only 2 international reports on Environment Performance
Review (2002; 2012) and 1 national reports
• Monitoring progress, evaluation of data and assessment of
policy efficiency need to be strengthen.
• This challenge necessitates an improved institutional
background and the improved operation of responsible
institutions.
Main problems:
• linked to its historic legacy of a centrally
planned economy.
– Water Pollution
– Air pollution
– Land degradation
– Biodiversity losses
– Disaster risks
– Climate variability and change
Assessment:
•
•
•
•
Quality of Air
Emission of CO2 in Albania
Deforestation
Purity of sea (Quality of beaches)
Quality of Air measured by PM10 and LNP
• PM10 – particulate matter concentrations,
fine suspended particulates less than 10
microns in diameter
• Mixture of solid and liquid particles
• Capable of penetrating deep into the
respiratory tract and causing significant health
damage
• Gas released by automobiles
Quality of Air measured by PM10 and LNP
PM10 (μg/m3)
180
160
140
120
100
80
60
40
20
0
2002
Tirane
2003
Shkoder
Durres
2004
Elbasan
Source: Environmental, Forest and Water
Administration Ministry (2011)
2005
Fier
2006
Vlorë
2007
Korçë
2008
EU standard
PM10
• Allowed level of these gases are 60
μg/m3/year or about 50% higher than the
level allowed by the European Union which
has an average of 40 μg/m3.
• 2-7 times higher
• Dangerous Area from WHO
Quality of Air-Presence measured by PM10 and LNP
• LNP- floating solid particles
• The presence of dust particles in air
• Source from construction and poor quality of
roads
Quality of Air-Presence measured by PM10 and LNP
LNP (μg/m3)
400
350
300
250
200
150
100
50
0
2002
Tirane
2003
Shkoder
2005
Durres
Elbasan
Source: Environmental, Forest and Water
Administration Ministry (2011)
2006
Fier
2007
Vlorë
Korçë
2008
EU standard
Air Pollution
• Nitrogen dioxide (NO2) and Sulfur Dioxide
(SO2) are components of smog and causes of
acid rains.
• Very easily human organism and can cause
lung diseases, increase the chance of receiving
viruses, eye irritation or skin diseases.
• Acid rain
Air Pollution measured by sulfur dioxide
SO2
70
60
Tirane
50
Shkoder
Durres
40
Elbasan
Fier
Vlorë
30
Korçë
Mesatarja
20
Norma Shqiptare
Normat EU
10
0
2002
2003
2004
2005
Source: Environmental, Forest and Water
Administration Ministry (2011)
2006
2007
2008
2009
Air Pollution measured by nitrogen dioxide
NO2
70
60
Tirane
50
Shkoder
Durres
40
Elbasan
Fier
Vlorë
30
Korçë
Mesatarja
20
Norma Shqiptare
Normat EU
10
0
2002
2003
2004
2005
Source: Environmental, Forest and Water
Administration Ministry (2011)
2006
2007
2008
2009
Interpretation and possible reasons
• The current situation does not appear
problematic.
• Nevertheless, Albania is still at relatively high
levels despite not being an industrialized country
• Te data are average of all urban areas, including
the rural which lower the average
• The goal should not be an overall average below
the limits of the European Union, but rather a
level below 40 μg/m3 for every area
• Focus also in the cities where are located
factories in their vicinity such as Kruja
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Air Pollution measured by carbon
dioxide
CO2 Emission in Albania (metric tons per capita)
3.0
2.5
2.0
1.5
1.0
0.5
0.0
Source: World Bank (2011)
Deforestation (illegal chopping)
Prerjet e paligjshme (ne m3)
60,000
50,000
40,000
30,000
20,000
10,000
0
2003
2004
2005
2006
Source: Environmental, Forest and Water
Administration Ministry (2011)
2007
2008
2009
2010
2011
2012
Quality of beaches
Kategorizimi i pastertise se plazheve
60%
50%
40%
30%
20%
10%
0%
A - Very good
B - Good
Public Health Institute (2012)
C - Not good
D - Bad
Taxes and Fees
• Environment policy in Albania underdeveloped,
consist of control and regulatory taxes
• Few market instruments
• Taxes on used vehicles (fuel tax. Cleaning tax,
environmental fines, forestry and fishery fines)
• Share of environmental taxes: 0.41% of GDP
• No other pollution emission sources
• Deficiency in monitoring infrastructure
Further research: Evaluation
EF = Emission Factor
HR = Heat Rate in Btus/kWh;1
VED = Value of Environmental Damage, in ¢/lb.
Conclusions
•
•
•
•
•
•
Implementation problem
Not available data, no research
Problem 1: Air pollution
Improvement in other aspects
Need to evaluate for internalizing
Need to address to policies, reforms SHR and
LR
Thank You!