Budget Constraint and the Valuation of Environmental Impacts in Thailand

electronic supplementary material

Promoting sustainability in emerging economies via life cycle thinking

Budget Constraint and the Valuation of Environmental Impacts in Thailand

Piyanon Kaenchan1,2 • Shabbir H. Gheewala1,2

Received: 19 February 2016 / Accepted: 26 September 2016

Responsible editor: ThapatSilalertruksa

1The Joint Graduate School of Energy and Environment, King Mongkut’s University of Technology Thonburi, Thailand

2Centre of Excellence on Energy Technology and Environment, PERDO, Bangkok, Thailand

Shabbir H. Gheewala

Table A Endpoint environmental effects of liquid fuels

Production
Impact category / Unit / Light fuel oil
1000 L / Kerosene
1000 L / Molasses ethanol
1000 L / Petrol, unleaded
1000 L
Climate change (Human Health) / QALY / 8.7E-04 / 9.6E-04 / 8.2E-04 / 1.5E-03
Ozone depletion / QALY / 2.0E-06 / 2.3E-06 / 1.3E-07 / 2.5E-06
Human toxicity / QALY / 5.9E-05 / 6.6E-05 / 4.9E-05 / 9.5E-05
Photochemical oxidant formation / QALY / 1.5E-07 / 1.7E-07 / 8.7E-08 / 2.1E-07
Particulate matter formation / QALY / 4.2E-04 / 4.6E-04 / 3.8E-04 / 6.3E-04
Ionising radiation / QALY / 4.7E-06 / 5.2E-06 / 2.0E-06 / 5.8E-06
Climate change (Ecosystems) / BAHY / 3.3E-02 / 3.7E-02 / 3.1E-02 / 5.6E-02
Terrestrial acidification / BAHY / 2.2E-04 / 2.4E-04 / 2.3E-04 / 3.3E-04
Freshwater eutrophication / BAHY / 1.6E-05 / 1.7E-05 / 4.5E-05 / 2.5E-05
Terrestrial ecotoxicity / BAHY / 6.4E-05 / 7.1E-05 / 1.1E-04 / 9.3E-05
Freshwater ecotoxicity / BAHY / 2.1E-05 / 2.3E-05 / 2.7E-05 / 3.1E-05
Marine ecotoxicity / BAHY / 3.4E-06 / 3.7E-06 / 5.1E-06 / 5.3E-06
Agricultural land occupation / BAHY / 5.9E-04 / 6.4E-04 / 1.4E-01 / 8.7E-04
Urban land occupation / BAHY / 6.7E-04 / 7.4E-04 / 6.8E-04 / 8.8E-04
Natural land transformation / BAHY / 1.7E-02 / 1.9E-02 / 7.5E-04 / 2.1E-02
Metal depletion / USD / 1.1E+00 / 1.3E+00 / 2.1E+00 / 1.9E+00
Fossil depletion / USD / 2.4E+02 / 2.7E+02 / 2.0E+01 / 3.0E+02
Use
Impact category / Unit / Light fuel oil
1000 L / Kerosene
1000 L / Molasses ethanol
1000 L / Petrol, unleaded
1000 L
Climate change (Human Health) / QALY / 3.8E-03 / 3.8E-03 / 2.1E-03 / 3.3E-03
Climate change (Ecosystems) / BAHY / 1.5E-01 / 1.4E-01 / 8.1E-02 / 1.2E-01

Notes: Endpoint impacts of the liquid fuels production are calculated based onEcoinvent 3.1 database (Weidemaet al. 2014)and ReCiPe Endpoint (Hierarchist) V.1.11 (Goedkoopet al. 2014) by using SimaPro software V.8.0.4; Density of fuel oil, kerosene, ethanol, and unleaded petrol are 0.89, 0.80, 0.79, and 0.75 kg/L respectively; QALY is identical to DALY in ReCiPe; BAHY is equal to 10,000 PDF m2.yr where PDF m2.yr is the number of species loss during 1 year (species.yr) in ReCiPe divided by the number of species in a m2 [i.e. 1.48E-08 species/m2, coming from 1,604,000 global species/1.08E+14 m2 surface area (Goedkoopet al. 2013)]; Environmental impacts of the liquid fuels consumption are calculated using the factors from EPA (2014); Environmental impacts of the liquid fuels consumption cover only climate change

Table B Environmental cost of liquid fuels

Production
Impact category / Unit / Light fuel oil
1000 L / Kerosene
1000 L / Molasses ethanol
1000 L / Petrol, unleaded
1000 L
Climate change (Human Health) / THB / 445.57 / 493.42 / 419.62 / 749.94
Ozone depletion / THB / 1.04 / 1.16 / 0.07 / 1.27
Human toxicity / THB / 30.35 / 33.60 / 24.87 / 48.81
Photochemical oxidant formation / THB / 0.08 / 0.09 / 0.04 / 0.11
Particulate matter formation / THB / 212.66 / 235.61 / 193.75 / 322.15
Ionising radiation / THB / 2.40 / 2.66 / 1.00 / 2.97
Climate change (Ecosystems) / THB / 293.12 / 324.60 / 275.98 / 493.36
Terrestrial acidification / THB / 1.92 / 2.13 / 2.05 / 2.91
Freshwater eutrophication / THB / 0.14 / 0.15 / 0.39 / 0.22
Terrestrial ecotoxicity / THB / 0.56 / 0.62 / 0.95 / 0.82
Freshwater ecotoxicity / THB / 0.18 / 0.20 / 0.24 / 0.27
Marine ecotoxicity / THB / 0.03 / 0.03 / 0.04 / 0.05
Agricultural land occupation / THB / 5.15 / 5.63 / 1259.42 / 7.68
Urban land occupation / THB / 5.88 / 6.52 / 5.96 / 7.77
Natural land transformation / THB / 151.39 / 168.56 / 6.59 / 184.28
Metal depletion / THB / 36.19 / 40.44 / 66.34 / 62.26
Fossil depletion / THB / 7638.33 / 8501.45 / 630.39 / 9524.98
Use
Impact category / Unit / Light fuel oil
1000 L / Kerosene
1000 L / Molasses ethanol
1000 L / Petrol, unleaded
1000 L
Climate change (Human Health) / THB / 1940.12 / 1928.86 / 1089.57 / 1668.10
Climate change (Ecosystems) / THB / 1276.67 / 1269.26 / 716.98 / 1097.67
Total environmental cost / THB / 12,042 / 13,015 / 4,694 / 14,176

Notes: Values in Table B are the values in Table A multiplied by 512,000 THB/QALY, 8,800 THB/QALY, and 32 THB/USD for the units of QALY, BAHY, and USD respectively

Table C Percentage of environmental cost in the retail price of liquid fuels

Light fuel oil / Kerosene / Ethanol (molasses) / Petrol, unleaded
Retail price (of petroleum products in Bangkok in 2011) (THB/L) / 28.59 / 38.21 / 21.14 / 44.64
Environmental cost per L petroleum product (THB/L) / 12.04 / 13.01 / 4.69 / 14.18
Environmental cost compared to retail price (%) / 42% / 34% / 22% / 32%
Total cost per liter (retail price plus environmental cost) (THB/L) / 40.63 / 51.22 / 25.83 / 58.82

Notes: Retail prices of ethanol and petroleum products in Bangkok are from DEDE (2012)

References

DEDE (Thailand Department of Alternative Energy Development and Efficiency) (2012) Thailand Energy Statistics 2012 (Preliminary)

EPA (Environmental Protection Agency) (2014) Emission factors of greenhouse gas inventories. Accessed

Goedkoop M, Heijungs R, Huijbregts M, De Schryver A, Struijs J, Van Zelm R (2013) ReCiPe 2008 Version 1.08. Accessed

Goedkoop M, Heijungs R, Huijbregts M, De Schryver A, Struijs J, Van Zelm R (2014) ReCiPe 2008 Version 1.11. Accessed

Weidema BP, Bauer C, Hischier R, Mutel C, Nemecek T, Reinhard J, Vadenbo CO, Wernet G(2014) The ecoinvent database: Overview and methodology, Data quality guideline for the ecoinvent database version 3.1. Accessed