Benefits and Costs of the Informal Sector: The Case of Brick Kilns in Bangladesh

In developing countries, the informal sector—brick kilns, leather tanning, food processing factories—is often highly polluting, causing countless deaths and illnesses. This paper presents the case of brick kilns in Dhaka, one of the most polluted cities in Asia. Five months per year, brick kilns are the city’s main source of fine particulate pollution, accounting for 38 percent of total fine particulate mass. The paper values the impacts of existing and alternative brick kiln technologies in Dhaka city. Through a Cost-Benefit Analysis, it estimates the net returns for the entrepreneur, and the social costs, such as health impacts from air pollution and damages due to carbon emissions from kilns. It shows that cleaner technologies are more attractive than traditional technologies both from the private and social perspective, and provides concrete recommendations for a cleaner brick sector in Bangladesh.

Estimating the Health Cost of Air Pollution: The Case of Morocco

Globally, ambient fine particulate matter (PM2.5) is the fifth leading cause of death. Household air pollution from use of solid fuels is the tenth ranked cause of death. Together, ambient and household air pollution caused 6.4 million deaths worldwide. In the Middle East and North Africa region, an estimated 125,000 lives are lost annually to diseases associated with ambient and household air pollution. This paper estimates the economic cost of air pollution in Morocco, a country marked by rapid economic development and urbanization. Using the most updated causal relationships between long-term exposure to PM2.5 and premature mortality, the paper estimates that air pollution costs society about US$1.14 billion annually, or 1.05 percent of the country’s GDP in 2014. Ambient air pollution is responsible for nearly three quarters of this cost, as a result of large exposure to high PM2.5 levels in cities like Casablanca, Tangier, and Marrakesh. Household air pollution is a problem particularly for rural households using solid fuels for cooking and heating. Based on these results, the paper identifies the most affected areas and the most vulnerable groups in the country.

How Much Does Environmental Degradation Cost? The Case of Morocco

Environmental degradation is costly—to individuals, to societies and to the environment. This paper makes these costs clear in the context of Morocco, a country marked by rapid economic development and urbanization. Although Morocco has made impressive efforts to strengthen its policies and strategies to protect its environment and natural resources, environmental degradation is still an issue. Using the most updated methodology and data sources, the paper estimates that environmental degradation imposed costs on Moroccan society of about US$3.9 billion, or 3.5 percent of the country’s GDP in 2014. Water-related problems and air pollution are the most pressing challenges, followed by agricultural land degradation. Based on these findings, the paper provides guidance for an improved management of the country’s environmental priority areas.