The annual cost of environmental degradation in the country amounts to about Rs 3.75 lakh crore ($80 billion), equivalent to 5.7 per cent of the GDP. About 23 per cent of child mortality in the country could be attributed to environmental degradation, caused by poor water supply, sanitation and hygiene affecting children below the age of five.
The above observations have been made in a new World Bank report “Diagnostic Assessment of Select Environmental Challenges in India” released on Wednesday. This is the first-ever national level economic assessment of environmental degradation in India.
It analyses the physical and monetary losses of environmental health and natural resources. This will allow the country to maintain a high pace of economic growth without jeopardising future environmental sustainability.
The report, however, points out that green growth can become a reality by putting in place strategies to reduce environmental degradation at the minimal cost of 0.02 per cent to 0.04 per cent of average annual GDP growth rate.
The report has particularly focused on particle pollution (PM10) caused by the burning of fossil fuels. This according to the report has serious health consequences amounting to up to 3 per cent of India’s GDP. This is further compounded with losses due to lack of access to clean water supply, sanitation and hygiene and natural resources depletion.
Of this, the impacts of outdoor air pollution account for the highest share at 1.7 per cent followed by cost of indoor air pollution at 1.3 per cent. The higher costs for outdoor/ indoor air pollution are primarily driven by an elevated exposure of the young and productive urban population to particulate matter pollution that results in a substantial cardiopulmonary and Chronic Obstructive Pulmonary Disease mortality load among adults.
The study, however, suggests that a reduction of 10 per cent particulate emission by 2030 will lower GDP modestly. This represents a loss of merely 0.3 per cent to the GDP compared to business as usual. On the other hand, a 30 per cent particulate emission reduction lowers GDP about $97 billion, or 0.7 per cent with very little impact on the growth rates.
There are significant health benefits under both scenarios. The savings from reduced health damages range from $105 billion in the 30 per cent case to $24 billion with a 10 per cent reduction. This, to a large extent, compensates for the projected GDP loss.
