ARAB REPUBLIC OF EGYPT: COST OF ENVIRONMENTAL DEGRADATION Air and Water Pollution ARAB REPUBLIC OF EGYPT: COST OF ENVIRONMENTAL DEGRADATION AIR AND WATER POLLUTION © 2019, The World Bank 818 H Street N.W, Washington DC 20433 Telephone: (202)473 1000 Internet: www.worldbank.org Some rights reserved This work is a product of the staff of the World Bank with external contributions. Note that the World Bank does not necessarily own each component of the content included in the work. The World Bank therefore does not warrant that the use of the content contained in the work will not infringe on the rights of third parties. The risk of claims resulting from such infringement rests solely with you. This report is a product of The World Bank. It reflects the findings of the World Bank study team, and does not nec- essarily represent the views of the Ministry of Environment of Egypt and its Egyptian Environmental Affairs Agency (EEAA). 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TABLE OF CONTENTS Acronyms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vi CHAPTER ONE: Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 CHAPTER TWO: Ambient Air Pollution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2.1 Population . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2.2  Ambient PM Air Quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2.3  Population Exposure to Ambient PM2.5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2.4  Health Risks of Ambient PM2.5 Exposure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2.5  Estimated Health Effects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2.6  Cost of Health Effects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 2.7  Sources of PM2.5 in Greater Cairo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 2.8  Comparison with Previous World Bank Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 CHAPTER THREE: Drinking Water, Sanitation, and Hygiene . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 3.1  Water Pollution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 3.2  Household Drinking Water Supply and Sanitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 3.3  Health Effects of Inadequate Drinking Water, Sanitation, and Hygiene . . . . . . . . . . . 17 3.4  Cost of Health Effects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 CHAPTER FOUR: Summary and Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Annex 1: Health Effects of Particulate Matter Pollution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 A1.1  Ambient Particulate Matter Air Pollution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 A1.2  An Integrated Exposure-Response Function . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 A1.3  Baseline Health Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 A1.4.  Estimating Health Effects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Annex 2: Health Effects from Water, Sanitation, and Hygiene . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Direct Health Effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Indirect Health Effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Annex 3: Valuation of Health Effects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 A3.1 Illness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 A3.2 Mortality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Air and Water Pollution iii FIGURES Figure 2.1: Population of Egypt in 2017 (million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Figure 2.2: Annual Average PM2.5 in Greater Cairo 1999–2016 (μg/m3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Figure 2.3: Monthly Average PM10 and PM2.5 in Greater Cairo in 2016 (μg/m3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Figure 2.4: Relative Risks of Major Health Outcomes Associated with PM2.5 Exposure, GBD 2017 . . . . . . . . . . . . . . . . . . 6 Figure 2.5: Sources of Ambient PM2.5 at Six Sites in Greater Cairo, 1999 and 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 TABLES Table 2.1: Air Quality Monitoring Stations in Egypt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Table 2.2: Annual Average Ambient PM10 and PM2.5 in Egypt (μg/m3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Table 2.3: Estimated Annual Deaths from Ambient PM2.5 Air Pollution in Greater Cairo, 2017 . . . . . . . . . . . . . . . . . . . . . 6 Table 2.4: Step-by-Step Estimation of Annual Deaths from Ambient PM2.5 in Greater Cairo, Central Estimate 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Table 2.5: Days Lived with Disease from Ambient PM2.5 in Greater Cairo, 2017 (million) . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Table 2.6: YLDs and Days Lived with Disease from Ambient PM2.5 in Greater Cairo, Central Estimate, 2017 . . . . . . . . 8 Table 2.7: Estimated Annual Cost of Health Effects of Ambient PM2.5 in Greater Cairo, 2016/17 (LE billion) . . . . . . . . . 9 Table 2.8: Contribution to Ambient PM2.5 at Six Sites in Greater Cairo, 1999 and 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Table 2.9: Contribution to Ambient PM2.5 during Three Seasons in Greater Cairo, 1999 and 2002 . . . . . . . . . . . . . . . . 11 Table 2.10: Ambient PM2.5 Contributions at Five Sites in Greater Cairo in 1999/2002 and 2010, μg/m3 . . . . . . . . . . . . . . . . 12 Table 2.11: Ambient Concentrations of PM10 and PM2.5 Geological Material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Table 2.12: Non-Comparable Health Effects and Costs of Ambient Air Pollution in Egypt, 1999–2017 . . . . . . . . . . . . . 13 Table 2.13: Comparable Annual Mortality from Ambient PM2.5 in Greater Cairo (GC) in 1999, 2009, and 2017 . . . . . 14 Table 3.1: Population Access to Drinking Water in Egypt, Estimate 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Table 3.2: Population Access to Sanitation in Egypt, Estimate 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Table 3.3: Estimated Days Lived with Disease from Inadequate Water, Sanitation, and Hygiene (WASH) in Egypt, 2017 (million days) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Table 3.4: Estimated Deaths from Inadequate Water, Sanitation, and Hygiene (WASH) in Egypt, 2017 . . . . . . . . . . . . 17 Table 3.5: Attributable Fractions of Disease Due to Inadequate Water, Sanitation, and Hygiene in Egypt, 2017 . . . . 18 Table 3.6: Estimated Annual Cost of Health Effects of Inadequate Water, Sanitation, and Hygiene in Egypt, 2016/17 (LE billion) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Table A1.1: Population and Mortality in Egypt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Table A1.2: Age Distribution in Egypt According to the Population Census 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Table A1.3: Age Distribution in Greater Cairo According to the Population Census 2017 . . . . . . . . . . . . . . . . . . . . . . . . . 28 Table A1.4: Estimates of Cause-Specific Annual Deaths in Egypt in 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Table A1.5: Adjustment Factors for Annual Deaths in Greater Cairo, 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Table A1.6: Estimates of Cause-Specific Annual Deaths in Greater Cairo in 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Table A1.7: Estimated Annual Deaths from Ambient PM2.5 Air Pollution in Greater Cairo, 2017 . . . . . . . . . . . . . . . . . . 30 Table A2.1: Relative Risk of Diarrheal Disease from Drinking Water in Egypt, 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Table A2.2: Relative Rrisk of Diarrheal Disease from Sanitation in Egypt, 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Table A2.3: Relative Risk of Diarrheal Disease from Lack of Handwashing Facility in Egypt, 2017 . . . . . . . . . . . . . . . 32 Table A2.4: Attributable Fractions of Diarrheal Disease Due to Inadequate WASH in Egypt . . . . . . . . . . . . . . . . . . . . . 33 Table A2.5: Relative Risk of Mortality from Severe, Moderate, and Mild Underweight in Children under Five . . . . . . 34 Table A3.1: Disability Weights for Egypt Associated with Ambient PM2.5 in Egypt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Table A3.2: Disability Weights for Egypt Associated with Inadequate Water, Sanitation, and Hygiene . . . . . . . . . . . 36 iv Arab Republic of Egypt: Cost of Environmental Degradation ACRONYMS AAP Ambient air pollution AF Attributable fraction ALRI Acute lower respiratory infection CAIP Cairo Air Improvement Project CAPMAS Central Agency for Public Mobilization and Statistics CBV Cerebrovascular disease CDR Crude death rate per 1,000 population COI Cost-of-illness COPD Chronic obstructive pulmonary disease CP Cardiopulmonary disease DHS Demographic and Health Survey EEAA Egyptian Environmental Affairs Agency EIMP Egyptian Information and Monitoring Program EU European Union GBD Global Burden of Disease GDP Gross domestic product HFO Heavy fuel oil IER Integrated exposure-response IHD Ischemic heart disease JMP Joint Monitoring Programme KGGTF Korean Green Growth Trust Fund LC Lung cancer LE Egyptian pound (currency) µg/m3 microgram per cubic meter MOF Ministry of Finance OECD Organisation for Economic Co-operation and Development PM Particulate matter PMEH Pollution Management and Environmental Health PPP Purchasing power parity RR Relative risk SHS Second hand smoking UNICEF United Nations Children’s Fund VSL Value of statistical life WASH Water, sanitation, and hygiene WHO World Health Organization WTP Willingness-to-pay YLD Years lived with disability Air and Water Pollution v ACKNOWLEDGEMENTS This study was prepared by a team consisting of Bjorn Larsen (Senior Environmental Economist, Consultant) under the guidance of Katelijn Van den Berg (Senior Environment Specialist), Craig Meisner (Senior Environmental Economist), and Martin Heger (Environ- mental Economist). Valuable input was also provided by Alaa Sarhan (Senior Environmental Economist). The team would like to acknowledge the support and guidance received from Asad Alam, Country Director, Egypt, Yemen, and Djibouti; Lia Sieghart, Practice Manager, Environment, Natural Resources and Blue Economy Global Practice, and Benoît Blarel, Practice Manager, Environment, Natural Resources, and Blue Economy Global Practice. The team would like to acknowledge the financial support of this study through the Korean Green Growth Trust Fund (KGGTF), and the Pollution Management and Environmental Health (PMEH) Trust Fund. vi Arab Republic of Egypt: Cost of Environmental Degradation CHAPTER ONE INTRODUCTION Quantitative assessments of health impacts from environmental pollution are useful infor- mation for government and the general public. Such assessments can serve as an instrument to identify environmental priorities, mobilize support for their implementation, and, more broadly, to advance toward realizing environmental objectives. This report provides estimates of health effects of ambient air pollution (AAP) in Greater Cairo, and inadequate household drinking water, sanitation, and hygiene (WASH) nation- wide in Egypt. Monetized estimates are provided of the social and economic cost of these health effects in Egyptian pounds and as a percentage of Egypt’s Gross Domestic Product (GDP) in 2016/17, using standard economic valuation techniques. The report utilizes the latest health risk assessment methodologies from the Global Burden of Disease (GBD) 2017, published in The Lancet in November 2018 (Stanaway et al., 2018).1 The report finds that 19,200 people died prematurely and over 3 billion days were lived with illness in Egypt in 2017 as a result of ambient PM2.5 air pollution in Greater Cairo, and inadequate water, sanitation, and hygiene in all of Egypt. The estimated cost of these health effects was equivalent to 2.5% of Egypt’s GDP in 2016/17. The cost of ambient PM2.5 air pollution in Greater Cairo was highest, with a central estimate of LE 47 billion, equivalent to 1.35% of GDP. The cost of inadequate drinking water, sanitation, and hygiene nation- wide was LE 39 billion, equivalent to 1.15% of GDP. However, water related costs are likely higher than suggested by this figure because of undetermined exposure to lead, other heavy metals, and chemicals through drinking water. On a per capita basis, the cost of ambient air pollution in Greater Cairo was LE 2.7 billion per one million people. This is nearly seven times higher than the nationwide cost per million people of inadequate water, sanitation, and hygiene. While the report finds that air quality, in terms of PM2.5 concentrations, improved in Greater Cairo over the period from 1999 to 2016, it was outpaced by population growth, resulting in an increase in annual deaths from ambient PM2.5. Annual deaths from ambient PM2.5 per 100,000 people did, however, decline by 8% from 79 to 73 from 1999 to 2017. 1The methodologies are available in Supplementary Appendix 1 to Stanaway et al. (2018), and in Annexes 1 and 2 in this report. Air and Water Pollution 1 CHAPTER TWO AMBIENT AIR POLLUTION 2.1 POPULATION The population of Egypt reached 95 million in 2017 (CAPMAS, 2018). About 58% of the population or 55 million people lived in rural areas while 40 million lived in urban areas. The population of Greater Cairo was over 17 million.2 The population in Lower Egypt (LE) and Upper Egypt (UE) was over 45 million and 32 million respectively (figure 2.1). Lower and Upper Egypt is here defined as governorates south and north of Greater Cairo, respec- tively.3 GDP per capita in Egypt was LE 37,192 in 2016/17 (US$2,527) (MOF, 2018). FIGURE 2.1: POPULATION OF EGYPT IN 2017 (MILLION) 35 29.8 30 25 25 20 17.3 15.7 15 10 7.4 5 0 Greater Cairo LE urban LE rural UE urban UE rural Source: CAPMAS (2018). 2.2  AMBIENT PM AIR QUALITY Particulate matter (PM) and especially PM2.5 is the outdoor air pollutant that globally is asso- ciated with the largest health effects (Stanaway et al., 2018). The WHO reduced its guideline limits over a decade ago to an annual average ambient concentration of 10 micrograms per cubic meter (µg/m3) of PM2.5 and 20 µg/m3 of PM10 in response to increased evidence of health effects at very low concentrations of PM. 2Greater Cairo includes Cairo governorate, the urban population of Giza and Kalyoubia, and 10th of Ramadan City in Sharkia governorate. 3This includes the 1.7 million population of the Western and Eastern Deserts and North and South Sinai. 2 Arab Republic of Egypt: Cost of Environmental Degradation TABLE 2.1: AIR QUALITY MONITORING STATIONS IN EGYPT Sinai and Greater Upper Canal Cairo Alexandria Delta Egypt Cities Total EIMP (1999) 14 8 10 9 1 42 CAIP (1998) 34 34 Other 3 6 2 11 (2000+) Total 48 8 13 15 3 87 Source: Sivertsen et al. (2000); Saffar and Labib (2010); EEAA (2015). 2.2.1  AIR QUALITY MONITORING NETWORK Monitoring data of PM2.5 ambient air quality of the Egyptian Environmental Affairs Agency (EEAA) are utilized in this report to provide estimates of health effects of ambient air pol- lution in Greater Cairo. Nationwide health effects are not presented due to insufficient air quality monitoring outside of Greater Cairo. The national air quality monitoring network of EEAA consists of 87 stations (table 2.1). The monitoring sites are classified as 19 industrial, 21 urban, 11 residential, 11 traffic, 9 remote, and 16 mixed (EEAA, 2015). Forty-two of the stations were designed and developed during 1997–1999 under the Egyp- tian Information and Monitoring Program (EIMP) (Sivertsen et al., 2000). These sites mon- itor PM10 and other criteria pollutants, but not PM2.5. Thirty-four stations were established under the Cairo Air Improvement Project (CAIP). Formal operation of the CAIP monitor- ing network began on October 1, 1998. Twenty-four of the stations monitor PM2.5 while all monitor PM10 (Safar and Labib, 2010).4 Additionally, 11 stations were developed at a later stage in the Delta, Upper Egypt, and Sinai and Canal Cities. The air quality monitoring network in Greater Cairo consists of 48 sites. Thirty-four sites were established under CAIP in 1998 and 14 sites under EIMP in 1999. Twenty-four of the CAIP sites monitor PM2.5 and all CAIP and EIMP monitor PM10. The EIMP sites also monitor other criteria pollutants, but not PM2.5 (Saffar and Labib, 2010). The 24 sites that monitor PM2.5 in Cairo are classified as 1 traffic, 4 mixed, 9 residential, 7 industrial, and 1 “background” or rural/agricultural site (Kaha outside of Cairo), while 2 sites monitor source emissions in Shoubra El-Kheima and Tebbin (Saffar and Labib, 2010). 2.2.2  AMBIENT CONCENTRATIONS OF PM Annual average ambient PM2.5 in Greater Cairo is many times higher than WHO air quality guidelines. Annual PM2.5 in Greater Cairo from 1999 to 2016 are presented in figure 2.2. Average concentrations over the 18-year period was 84 µg/m3 with the lowest concentra- tion of 66 µg/m3 in 2016. Thus, ambient concentrations of PM2.5 seem to have declined in Greater Cairo in the most recent years. This is also the case at Kaha (Qaha), 15 km north of urban Greater Cairo, but concentrations are not much lower than in urban Greater Cairo. 4There were originally 37 sites. Two sites were cancelled and one site relocated in 2001–2002. Air and Water Pollution 3 FIGURE 2.2: ANNUAL AVERAGE PM2.5 IN GREATER CAIRO 1999–2016 (μG/M3) 120 109 111 110 100 93 93 94 90 90 85 85 83 86 82 80 74 72 74 70 69 70 66 60 50 40 30 20 10 0 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 19 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 Source: Calculated by the author based on data provided by EEAA. Ambient concentrations of PM10 also appear to be high at the monitoring locations in Lower and Upper Egypt. Concentrations in Lower Egypt (LE) are as high as in Greater Cairo (GC), with concentrations in Upper Egypt (UE) substantially higher. Concentrations of PM10 in Ras Mohammad at the southern tip of the Sinai Peninsula are less than half of concentra- tions in Kaha (Qaha) (see table 2.2). Measurement data of PM10 and PM2.5 from the same monitoring stations in Greater Cairo are available for the year 2016. The data demonstrates seasonal variations in both PM10 and PM2.5 with the lowest concentrations in July and August and the highest in December to February (figure 2.3). The annual average PM2.5/PM10 ratio is 0.40. Annual average PM10 and PM2.5 were 165 µg/m3 and 66 µg/m3 respectively. It should be mentioned that the monitoring data presented here may be influenced by the type of equipment, measurement procedures, equipment maintenance, and other factors. TABLE 2.2: ANNUAL AVERAGE AMBIENT PM10 AND PM2.5 IN EGYPT (μG/M3) PM10 PM2.5 Qaha Qaha Ras GC-1 (GC-1) GC-2 (GC-2) LE UE Mohammad GC 2017* 117 117 123 186 2016 125 131 165 131 120 201 54 66 2015 132 127 197 180 136 178 66 86 2014 153 137 205 251 148 186 111 2013 161 181 109 2012 179 178 2011 166 186 2010 177 248 Note: GC-1 = Greater Cairo (stations set 1), GC-2 = Greater Cairo (stations set 2), LE = Lower Egypt, UE = Upper Egypt. * January–October. Source: Calculated by the author based on EEAA ambient PM2.5 and PM10 monitoring data. 4 Arab Republic of Egypt: Cost of Environmental Degradation FIGURE 2.3: MONTHLY AVERAGE PM10 AND PM2.5 IN GREATER CAIRO IN 2016 (μG/M3) 250 200 150 PM10 100 PM2.5 50 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: Calculated by the author based on EEAA daily ambient PM2.5 and PM10 monitoring data. 2.3  POPULATION EXPOSURE TO AMBIENT PM2.5 Ground monitoring data from EEAA for the years 2015 and 2016 are applied in this report to estimate ambient PM2.5 exposure in Greater Cairo. The central estimate for Greater Cairo is 76 μg/m3. This is the annual average PM2.5 in 2015 and 2016. The lower bound estimate (66 μg/m3) is the annual PM2.5 in 2016, and the upper bound estimate (86 μg/m3) is the annual PM2.5 in 2015. PM2.5 measurements for the year 2017 have not been made available. 2.4  HEALTH RISKS OF AMBIENT PM2.5 EXPOSURE The main health risks of ambient PM2.5 exposure assessed by WHO and the GBD Project are cardiovascular disease, pulmonary disease, and lung cancer mortality and morbidity. The risk of disease is expressed as relative risk (RR), or risk of disease from ambient PM2.5 expo- sure relative to the risk if there is no PM2.5 exposure. The risks normally reflect long-term exposure to ambient PM2.5. The health effects of ambient PM2.5 exposure are estimated in this report using RR func- tions from the GBD 2017 (Stanaway et al., 2018). The health outcomes are ischemic heart disease (IHD), cerebrovascular disease (stroke) (CBV), chronic obstructive pulmonary disease (COPD), lung cancer, and diabetes Type II among adults (25+ years of age), and acute lower respiratory infections (ALRI) among children and adults (all ages) (figure 2.4). An advantage of the “integrated exposure-response” (IER) or health risk function of the GBD Project is that it is age-specific for the two largest health outcomes (i.e., IHD and stroke) with a unique risk curve in relation to exposure level for each five-year population cohort. This is important because risk of health effects from PM2.5 differs by age, and population age distribution and age-specific mortality rates differ from country to country. This develop- ment therefore provides increased confidence in applying the IER function across countries and regions. Air and Water Pollution 5 FIGURE 2.4: RELATIVE RISKS OF MAJOR HEALTH OUTCOMES ASSOCIATED WITH PM2.5 EXPOSURE, GBD 2017 1.9 1.8 ALRI 1.7 COPD 1.6 LC 1.5 Diabetes T2 1.4 1.3 IHD 1.2 Stroke 1.1 1.0 5 10 20 30 40 50 60 70 80 90 100 110 120 Annual average PM2.5 (µg/m3) Note: RRs of IHD and stroke are age-weighed. Source: Produced from Stanaway et al. (2018) Supplement. 2.5  ESTIMATED HEALTH EFFECTS Annual premature deaths from ambient PM2.5 exposure in Greater Cairo are estimated at about 12,100 to 13,000 in 2017, with a central estimate of nearly 12,600 (table 2.3). About 59% of the estimated deaths from ambient PM2.5 are due to ischemic heart disease (IHD), 14% due to acute lower respiratory infections (ALRI), 13% due to stroke, and 14% due to COPD, lung cancer and diabetes Type II. These estimates are based on annual ambient PM2.5 exposure in the range of 66–86 μg/m3 with a central estimate of 76 μg/m3. The step-by-step procedure to estimate annual deaths from ambient PM2.5 in Greater Cairo is presented in table 2.4 for the central estimate of PM2.5 exposure. This is summarized below with further details and data in annex 1. Baseline deaths Estimation of annual deaths from ambient PM2.5 requires an estimate of annual baseline deaths in Greater Cairo for each of the six health outcomes associated with PM2.5 exposure among the relevant age groups (i.e., among all age groups for ALRI, and among the popula- tion 25+ years of age for the other five health outcomes). TABLE 2.3: ESTIMATED ANNUAL DEATHS FROM AMBIENT PM2.5 AIR POLLUTION IN GREATER CAIRO, 2017 Low Central High IHD 7,176 7,437 7,666 Stroke 1,545 1,601 1,651 COPD 875 912 945 Lung cancer 244 262 278 ALRI 1,608 1,701 1,781 Diabetes Type II 654 655 655 Total 12,103 12,569 12,976 Source: Estimates by the author based on mortality data from CAPMAS (2018) and GBD 2017 (see www.healthdata.org), and RRs from GBD 2017. 6 Arab Republic of Egypt: Cost of Environmental Degradation TABLE 2.4: STEP-BY-STEP ESTIMATION OF ANNUAL DEATHS FROM AMBIENT PM2.5 IN GREATER CAIRO, CENTRAL ESTIMATE 2017 Lung Diabetes IHD Stroke COPD cancer II ALRI Other Total Baseline annual deaths (all ages) 34,655 10,966 2,692 927 2,160 4,370 49,283 105,053 Baseline annual deaths (25+ years) 34,480 10,805 2,623 914 2,146 4,370* PM2.5 (ug/m3) 76 76 76 76 76 76 76 76 Relative risk (RR) 1.275 1.174 1.534 1.402 1.439 1.637 1.000 Attributable fraction (AF) 0.2157 0.1482 0.3479 0.2868 0.3053 0.3893 0.0000 Annual deaths from PM2.5 7,437 1,601 912 262 655 1,701 0 12,569 Source: Estimates by the author based on mortality data from CAPMAS (2018) and GBD 2017, and RRs from GBD 2017. * All age-groups. The GBD 2017 presents estimates of annual deaths in Egypt in 2017 by each cause of death and by age group, based on Egyptian vital registration, household surveys (e.g., Egypt Demo- graphic and Health Survey), specialized surveys and reports, and the broader international evidence of the cause-specific structure of mortality by country income level, socioeconomic characteristics, and other determinants of cause-specific mortality rates.5 According to GBD 2017, 52% of total deaths in Egypt in 2017 were from the six causes of death associated with ambient PM2.5 exposure.6 These estimated deaths are first adjusted by the difference in the crude death rate (CDR) in GBD 2017 and the rate of 5.7 per 1,000 population reported by CAPMAS (2018). Secondly, the estimated deaths in GBD 2017 are adjusted for the difference in age distribution in Greater Cairo and in Egypt nationally reported by the Egypt Population Census 2017. The population in Greater Cairo is older than the rest of the Egyptian population. Death rates among older individuals are generally higher than among younger individuals. This results in a CDR of 6.05 in Greater Cairo. The estimated baseline annual deaths in Greater Cairo are presented in table 2.4. Deaths by age group are presented in annex 1. Relative risks The relative risk of death from ambient PM2.5 exposure for each of the six causes of death in table 2.4 is calculated based on the relative risk functions in the GBD 2017 presented in figure 2.4 and annual PM2.5 exposure in Greater Cairo. For the average PM2.5 concentration of Greater Cairo (76 ug/m3), the relative risks range from 1.17 for stroke to 1.64 for ALRI. The relative risk is 1.00 (meaning no health effects from ambient PM2.5) for health outcomes other than the six health outcomes associated with PM2.5 exposure. Attributable fractions The attributable fractions indicate how large of a share of baseline deaths are caused by ambient PM2.5 exposure. The attributable fractions are calculated from the relative risks 5See: http://ghdx.healthdata.org/gbd-2017/data-input-sources 6www.healthdata.org Air and Water Pollution 7 and the share of the population exposed to a particular PM2.5 concentration, as detailed in annex 1.7 Annual deaths from PM2.5 Annual deaths from ambient PM2.5 are then calculated by multiplying the attributable frac- tions with the baseline annual deaths. Annual deaths from PM2.5 are 12% of all deaths in Greater Cairo in 2017 (table 2.4). In addition to mortality, ambient PM2.5 in Greater Cairo is estimated to cause about 59,800– 61,800 “years lived with disability” (YLD), with a central estimate of nearly 61,000.8 This translates to 246–253 million days lived with disease in 2017, with a central estimate of 250 million (tables 2.5–2.6). About 60% of YLDs and days lived with disease are from diabetes TABLE 2.5: DAYS LIVED WITH DISEASE FROM AMBIENT PM2.5 IN GREATER CAIRO, 2017 (MILLION) Low Central High IHD   5.7   5.9   6.1 Stroke   8.3   8.6   8.8 COPD  74.7  77.8  80.6 Lung cancer   0.10   0.11   0.11 ALRI   5.9   6.2   6.5 Diabetes Type II 151.1 151.3 151.3 Total 245.7 249.9 253.4 Source: Estimates by the author based on YLDs per death and disability weights from GBD 2017 for Egypt. TABLE 2.6: YLDS AND DAYS LIVED WITH DISEASE FROM AMBIENT PM2.5 IN GREATER CAIRO, CENTRAL ESTIMATE, 2017 YLDs per Disability Days Lived with Death Deaths YLDs Weights Disease (million) IHD  0.08  7,437    558 0.035   5.9 Stroke  2.20  1,601  3,515 0.150   8.6 COPD 21.8    912 19,935 0.093  77.8 Lung cancer  0.25    262     65 0.226   0.1 ALRI  0.61  1,701  1,046 0.061   6.2 Diabetes Type II 54.6    655 35,762 0.086 151.3 Total from PM2.5 12,569 60,882 249.9 Source: Estimates by the author based on YLDs per death and disability weights from GBD 2017 for Egypt. 7The whole population of 17.3 million in Greater Cairo is assumed to be exposed to the central estimate of PM2.5. Therefore the attributable fraction formula is simply: AF = (RR – 1)/RR for each of the six health outcomes. The central estimate (76 μg/m3) is the population weighed average exposure level. In reality some of the population is exposed to higher and some to lower concentrations than the central estimate. Due to the concavity of the risk functions (i.e., declining marginal increase in health effects at higher PM2.5 exposure levels), the health effects are somewhat overestimated by applying the central estimate to the whole population. The overestimation is however very small. For instance, by assuming half of the population is exposed to PM2.5 of +25% and half to –25% of the central estimate, results in only a 0.7% lower estimate of annual deaths from ambient PM2.5. 8This is calculated as the number of deaths from PM 2.5 multiplied by YLDs per death. YLDs per death is from GBD 2017 for Egypt. YLD = M * d where M is number of days lived with disease and d is the disability weight ranging from 0 to 1 in severity. 8 Arab Republic of Egypt: Cost of Environmental Degradation Type II followed by 32% from COPD. Only about 8% of YLDs and days lived with disease are from IHD, stroke, lung cancer, and ALRI. The very large number of days lived with disease per year is due to the chronic nature of most of the health outcomes. A person that, for instance gets COPD or diabetes, lives with the disease all year. 2.6  COST OF HEALTH EFFECTS The annual cost of the health effects of ambient PM2.5 air pollution in Greater Cairo is estimated at LE 45-48 billion in 2016/17 with a central estimate of LE 47 billion. This is equivalent to 1.3% to 1.4% of GDP in 2016/17 with a central estimate of 1.35% (table 2.7). TABLE 2.7: ESTIMATED ANNUAL COST OF HEALTH EFFECTS OF AMBIENT PM2.5 IN GREATER CAIRO, 2016/17 (LE BILLION) Low Central High Cost of mortality 36.9 38.3 39.5 Cost of morbidity  8.5  8.7  8.8 Total cost of health effects 45.4 47.0 48.4 % equivalent of GDP, 2016/17  1.31%  1.35%  1.39% Source: Estimates by the author. The cost of mortality is calculated as the value of statistical life (VSL), i.e., LE 3.0 mil- lion, multiplied by the estimated number of deaths. The cost of mortality accounts for 82% of total cost.9 Cost of morbidity is calculated as a fraction of the average daily wages of LE 155 multiplied by the number of days lived with disease. The fraction of the wage rate is determined by the disability weight (severity) of the disease (see annex 3). 2.7  SOURCES OF PM2.5 IN GREATER CAIRO Gaining a perspective on what are the main sources of PM2.5 and their relative contribution to ambient PM2.5 is an important step toward assessing and identifying mitigation measures with lowest cost and highest benefit-cost ratios of improving air quality. There are three commonly applied methods available toward this aim: 1) Emission inventories; 2) Emission dispersion modeling; 3) Source apportionment studies. Emission inventories are useful in order to understand the magnitude of emissions from var- ious sources, such as traffic, industry, municipal waste burning, power plants, and residential fuel burning. However, emission inventories will have difficulties in portraying how much each of these sources contributes to ambient concentrations of a pollutant and do not cap- ture the significance of secondary particulates (sulfates and nitrates) and area-wide sources such as resuspended dust, windblown dust from the desert, and long distance agricultural burning. 9The value of statistical life (VSL) is a welfare measure derived from individuals’ willingness-to-pay (WTP) for a reduction in the risk of death. The VSL estimated for Egypt is LE 3.0 million based on a GDP per capita of LE 37,192 in 2016/17 according to MOF (2018) and the methodology for estimating the VSL in World Bank (2016) and World Bank and IHME (2016) (see annex 3). Air and Water Pollution 9 Emission dispersion modeling is very useful for estimating the contribution of large station- ary point sources to ambient air quality. The results can therefore be used to estimate health effects per ton of emissions, which can be compared to the cost of emission control. Disper- sion modeling is often applied to power plants and large industrial emission sources but can also be applied to emission from mobile sources. The results from dispersion modeling can also be used to estimate so-called emission intake fractions. The intake fraction tells us how much of a ton of emissions is eventually inhaled by the population and is therefore used for estimating health effects per ton of emissions. Source apportionment studies analyze the chemical characteristics of ambient particulate mat- ter such as PM2.5 or PM10. This analysis can therefore identify the likely sources of PM and apportion the PM to these sources, thus providing a perspective on the relative contribution of each source to ambient PM. Once a PM apportionment has been conducted, the results can be combined with an emission inventory to estimate the impact of a ton of emission on ambient concentrations from each source in the inventory. A cost-benefit analysis of mitigation options can then be undertaken. Apportionment studies in Egypt are discussed below. The most comprehensive apportionment study in Egypt seems to be an assessment of PM2.5 and PM10 in Greater Cairo in the winter (February 21 to March 3) and fall (October 27 to November 27) of 1999 and the summer (June 8 to June 26) of 2002 (Abu-Allaban et al., 2007). The study included five residential, industrial, and downtown monitoring sites, plus Kaha about 15 km north of urban Greater Cairo. These locations are a subset of EEAA’s 24 locations with PM2.5 monitoring stations. The results of the study are summarized in figure 2.5. Open burning (including burning of agricultural waste in the Nile Delta), secondary particulates (sulfates, nitrates, chlorides), and motor vehicles were found to be the three most dominant sources of PM2.5. Geological material (wind-blown natural dust) only contributed 9% of ambient PM2.5 at the sites. FIGURE 2.5: SOURCES OF AMBIENT PM2.5 AT SIX SITES IN GREATER CAIRO, 1999 AND 2002 40% 35% 30% 23% 20% 20% 14% 9% 10% 0% Open burning Secondary Motor vehicles Industry and HFO Geological material particulates Note: HFO = heavy fuel oil. Source: Produced from data in Abu-Allaban et al. (2007). The values are arithmetic averages of the six sites and three monitoring seasons. There were large variations in importance of these sources to ambient PM2.5 across sites over the monitoring periods (table 2.8): »» In Kaha, the highest contribution to ambient PM2.5 was from open burning and sec- ondary particulates, while geological material only contributed 4%. This is due to its agricultural location with relatively few motor vehicles and little industry. »» In El-Qualaly (downtown Cairo, close to road), El-Zamalak (residential with limited nearby point-sources of PM2.5), Helwan (residential near industrial sources), and El-Maassara (near cement plants), the highest contribution was from open burning, motor vehicles, and secondary particulates, albeit with some variation across the sites. 10 Arab Republic of Egypt: Cost of Environmental Degradation TABLE 2.8: CONTRIBUTION TO AMBIENT PM2.5 AT SIX SITES IN GREATER CAIRO, 1999 AND 2002 Mean PM2.5 Open Motor Industry Secondary Geological (µg/m3) Burning Vehicles and HFO Particulates Material Kaha 65 53% 11% 3% 28% 4% El-Qualaly 93 29% 35% 9% 24% 3% El-Zamalek 78 34% 22% 9% 31% 4% Helwan 59 40% 20% 6% 24% 11% Shoubra El-Kheima 150 25% 15% 29% 17% 14% El-Maassara 72 38% 16% 12% 22% 12% Source: Produced from data in Abu-Allaban et al. (2007). The values are arithmetic averages of three monitoring seasons. »» In Shoubra El-Kheima (industrial site) the highest contribution was from industry followed by open burning. »» The highest contribution from geological material was at the sites with the most indus- try, that is Shoubra El-Kheima, Helwan, and El-Massara, perhaps suggesting that the main source of PM2.5 geological material is not area-wide dust from desert winds, as dust from desert winds are mostly of coarse particle size (see below). Source contribution to ambient PM2.5 in Greater Cairo also varied substantially across sea- sons in 1999 and 2002 (table 2.9). Open burning and motor vehicles were the largest contrib- utors in the summer season. Open burning was by far the largest contributor in the fall, with widespread burning of agricultural waste in the Nile Delta region. Industry and heavy fuel oil (HFO) and secondary particulates were the largest contributors in the winter. Geological material was the smallest source in all seasons, ranging from about 5 µg/m3 (10%) in the summer to about 8–10 µg/m3 in the fall and winter. The PM apportionment study from 1999 and 2002 was repeated at five of the locations in the summer and fall of 2010, providing an opportunity for comparisons. The new study showed that open burning and motor vehicles continued to be the largest contributors to ambient PM2.5 in Greater Cairo in the fall and summer, respectively, and that geological material continued to be a relatively minor source (table 2.10). However, the ambient levels of PM2.5 reported by the study for the fall (52 µg/m3) and summer (38 µg/m3) of 2010 are substantially lower than EEAA reports for Greater Cairo. This makes it difficult to compare absolute changes in source specific and total ambient PM2.5 across years. TABLE 2.9: CONTRIBUTION TO AMBIENT PM2.5 DURING THREE SEASONS IN GREATER CAIRO, 1999 AND 2002 Mean PM2.5 Open Motor Industry Secondary Geological (µg/m3) Burning Vehicles and HFO Particulates Material Summer 49 30% 32% 10% 19% 10% Fall 127 45% 16% 9% 23% 6% Winter 84 18% 18% 26% 26% 12% Source: Produced from data in Abu-Allaban et al. (2007). The values are arithmetic averages of the six monitoring sites. Air and Water Pollution 11 TABLE 2.10: AMBIENT PM2.5 CONTRIBUTIONS AT FIVE SITES IN GREATER CAIRO IN 1999/2002 AND 2010, % OF TOTAL PM2.5 Geological Open Motor Secondary Material Burning Vehicles Particulates Other Total Winter 1999 5.7% 22.0% 19.0% 33.1% 20.2% 100% Fall 1999 5.1% 47.0% 17.0% 23.5% 7.4% 100% Summer 2002 7.4% 28.0% 33.0% 18.8% 12.8% 100% Summer 2010 17.0% 14.0% 36.0% 21.5% 11.5% 100% Fall 2010 6.3% 39.0% 29.0% 13.1% 12.6% 100% Source: Produced from Lowenthal, Gertler, and Labib (2014). TABLE 2.11: AMBIENT CONCENTRATIONS OF PM10 AND PM2.5 GEOLOGICAL MATERIAL µg/m3 Summer 2010 Fall 2010 PM10 PM2.5 PM10 PM2.5 El-Qualaly 52 5.1 29 3.0 Helwan 46 7.2 38 2.3 Kaha 54 8.6 39 3.9 Shobra 86 8.1 53 5.4 El-Zamalek 36 6.4 33 3.4 Average 55 7.1 38 3.6 Source: Produced from Lowenthal, Gertler, and Labib (2014). An issue of interest is the non-anthropogenic contribution of natural dust from deserts (and marine particles) to ambient PM in Egypt in general and in Greater Cairo in particular. From the studies above, it seems that geological material (e.g., natural dust) only contributes a minor share. This is because geological material is largely of coarse particles of size 2.5–10 microm- eters in diameter. In 2010 ambient geological material was in the range of 29–86 µg/m3 of PM10 and 2.3–8.6 µg/m3 of PM2.5 at five sites in Greater Cairo (table 2.11). This dispropor- tionate contribution of coarse particles from desert winds is also confirmed by assessment of satellite data over Cairo and the Nile Delta region (Marey et al., 2011). The apportionment studies discussed above found that open burning and secondary particu- lates were the main sources of ambient PM2.5 during all three seasons (fall, winter, summer), albeit of lower absolute magnitudes during summer and winter than the fall season. A more recent study may suggest that natural sources may contribute more to ambient PM2.5 in Greater Cairo than discussed above (Boman et al., 2013). The study monitored PM2.5 from September 2010 to May 2011 at the National Research Center about 3 km east to southeast of the center of Cairo. Mean PM2.5 was 51 µg/m3. Mineral dust constituted 56% or 28.5 µg/m3. However, monitoring took place only once a week for a period of 24 hours, and only at one site. 2.8  COMPARISON WITH PREVIOUS WORLD BANK ASSESSMENT To allow for an assessment of the longer term trend in air quality and health effects in Greater Cairo, an analysis of 1999 (World Bank, 2002) and 2017 (this current study) is 12 Arab Republic of Egypt: Cost of Environmental Degradation TABLE 2.12: NON-COMPARABLE HEALTH EFFECTS AND COSTS OF AMBIENT AIR POLLUTION IN EGYPT, 1999–2017 World Bank World Bank Report (this report) (2002) Year of assessment 2017 1999 Location coverage Greater Cairo Greater Cairo Exposed population (million) 17.3 11.9 Annual ambient PM10 (µg/m3) 270 Annual ambient PM2.5 (µg/m3) 76 110 Annual deaths from PM 12,569 18,924 Cost of ambient PM 1.35% 2.1%* (% equivalent of GDP) Methodology for estimating GBD, 2017 Ostro, 1994 annual deaths from PM * Cost of health effects only, and with valuation of mortality using VSL for consistency with this report for 2017. presented in this section (table 2.12).10 The cost of AAP in Greater Cairo ranged from an equivalent of 2.1% of GDP in 1999 to 1.35% of GDP in 2017.11 The two studies can, how- ever, not be directly compared for reasons discussed below: 1) Ambient PM concentrations: The study by World Bank (2002) applied higher ambient PM concentrations than subsequently available monitoring data indicates, contrib- uting to a higher cost of ambient PM in 1999. 2) Methodology for estimating health effects: World Bank (2002) applied the methodology in Ostro (1994) for estimation of health effects with the assumption that health effects increase linearly or proportionately with increases in ambient PM. Recent research suggests, however, that the marginal increase in mortality from PM declines with increasing concentrations of PM2.5 (Pope et al., 2009, 2011). This exposure-response relationship is featured in the GBD health risk assessment methodology used in the current study for 2017 for each of six health outcomes. Health effects of ambient PM2.5 in Greater Cairo in 1999 can be reassessed, and compared to 2017, using available PM2.5 monitoring data from that time and the health risk assessment methodology from GBD 2017 applied in this report. Published measurements of ambient PM10 and PM2.5 in Greater Cairo in 1999 indicate lower concentrations of PM than applied in World Bank (2002) (i.e., lower than PM10 = 270 µg/m3 or PM2.5 = 110 µg/m3 using a PM2.5/PM10 ratio of 0.4). EEAA reports PM10 concentrations of 234 µg/m3 in Greater Cairo in 1999 (EEAA, 2015).12 World Bank (2013) also reports PM10 of 234 µg/m3 in 1999, as well as PM2.5 of 90 µg/m3 referring to data from EEAA. A PM2.5 concentration of 90 μg/m3 in 1999 is therefore applied in the reassessment. Reassessment: In order to allow for a comparison of health impacts of air pollution over time, the current methodology (GBD 2017) is adopted to data from previous vintages (of the 10Thethird study undertook an assessment for the year 2009 (World Bank, 2013). 11Thesecosts reflect the use of a value of statistical life (VSL) for valuation of the cost of mortality in both studies. 12EEAA (2015) reports PM 3 2.5 of 78 µg/m in 1999. It seems, however, that this figure is from monitoring stations in all of Egypt. Air and Water Pollution 13 TABLE 2.13: COMPARABLE ANNUAL MORTALITY FROM AMBIENT PM2.5 IN GREATER CAIRO (GC) IN 1999 AND 2017 1999 2017 Change Reassessment 1999–2017 Exposed population (million) 11.9 17.3 +45% Annual ambient PM2.5 (μg/m3) 90 76 –16% Annual deaths from PM2.5 9,400 12,569 +34% Deaths from PM2.5 per 100,000 population 79 73 –8% Source: Annual ambient PM2.5 is from EEAA (2015), World Bank (2013) and data presented in this current study. Annual deaths from PM2.5 are estimates by the author using the GBD 2017 health risk functions. reports from 1999) in order to guarantee the comparability across time. The reassessment of health effects in terms of annual mortality from ambient PM in 1999 with comparison to 2017 is presented in table 2.13. The reassessed estimate of mortality from PM in 1999 differs from the estimates in table 2.12. This is expected because of the difference in methodologies. The population of Greater Cairo (GC) increased by about 45% from 1999 to 2017 while ambient PM2.5 declined by 16%. As a result, annual deaths from ambient PM2.5 increased by 34% from 1999 to 2017. Deaths from ambient PM2.5 per 100,000 population declined, however, by 8% from 1999 to 2017. In order to achieve a reduction in the number of deaths from ambient PM2.5 in Greater Cairo, the percent reductions in annual ambient PM2.5 concentrations must be larger than the percent increase in the population. To speed up reductions in ambient PM2.5, it would be very advantageous to undertake an updated PM2.5 source apportionment study. This would contribute toward identification of cost-effective interventions for minimization of cost to achieve ambient PM2.5 reduction targets. 14 Arab Republic of Egypt: Cost of Environmental Degradation CHAPTER THREE DRINKING WATER, SANITATION, AND HYGIENE 3.1  WATER POLLUTION Egypt receives over 55 billion m3 of Nile water per year. This water is used and reused before a minimal amount of water needed for navigation enters the Mediterranean Sea. Nile water quality is considered of better quality in Upper Egypt than in the Nile Delta south of Greater Cairo. Numerous studies have assessed Nile water quality in terms of parameters, such as dissolved oxygen (DO), total dissolved solids (TDS), chemical oxygen demand (COD), biological oxy- gen demand (BOD), turbidity, ammonia (NH3), pH, chloride (Cl−), phosphates (PO43−), and nitrate (NO3–). Many studies have also assessed ground water quality in terms of parameters such as TDS, pH, nitrate (NO3–), sodium ion (Na+), chloride ion (Cl–), ferrous ion (Fe2+), manganese ion (Mn2+), zinc ion (Zn2+), copper ion (Cu2+), and nickel ion (Ni2+). A report by COWI in collaboration with Chemonics Egypt prepared for the World Bank summarizes many of the studies of Nile and groundwater in the Delta, as well as the pollu- tion status of the Northern Lakes (COWI, 2016). While the studies and parameters mentioned above are of importance in their own right, they are not first priority in terms of potential impacts on health. Parameters of first priority in terms of health effects include fecal coliforms (FC) and heavy metals such as lead (Pb), cadmium (Cd), mercury (Hg) and arsenic (As). High concentrations of FC have, for instance, been detected in various sections and locations of the Damietta and Rosetta branches in the Nile Delta (COWI, 2016). 3.2  HOUSEHOLD DRINKING WATER SUPPLY AND SANITATION The Egypt Demographic and Health Survey 2014 (DHS 2014) reports that an estimated 98% of the Egyptian population had access to an improved drinking water source in 2014 (table 3.1). A method commonly used to protect against bacteriological contamination of drinking water is household point-of-use (POU) treatment. According to the Egypt DHS 2014 only 10% of the population lived in households practicing appropriate treatment of drinking water. The main method used was filtering of water. Air and Water Pollution 15 TABLE 3.1: POPULATION ACCESS TO DRINKING WATER IN EGYPT, ESTIMATE 2014 Urban Rural Total Total improved sources Piped onto premises 96.0% 87.8% 90.9% Other, improved source 2.7% 9.3% 6.8% Total unimproved sources Unimproved 1.1% 2.3% 1.9% Other 0.2% 0.6% 0.4% Source: Egypt Demographic and Health Survey 2014. TABLE 3.2: POPULATION ACCESS TO SANITATION IN EGYPT, ESTIMATE 2014 Urban Rural Total Improved, non-shared facility 98.8% 84.9% 90.2% Flush/pour flush to sewage system 90.9% 34.3% 55.4% Flush/pour flush to vault (bayara) 5.4% 22.5% 16.2% Flush/pour flush to septic tank 2.5% 28.1% 18.6% Unimproved, shared or no facility 1.1% 15.1% 9.8% Shared facility (otherwise improved) 0.9% 2.8% 2.1% Flush/pour flush to other 0.2% 12.1% 7.6% Unimproved pit latrine 0.0% 0.0% 0.0% No facility 0.0% 0.2% 0.1% Source: Egypt Demographic and Health Survey 2014. The Egypt DHS 2014 reports that an estimated 90% of the Egyptian population had access to an improved, non-shared sanitation facility in 2014 (table 3.2). Over 55% of the popula- tion was connected to a sewage system, while about 35% were connected to vault (bayara) or septic tank. The main sanitation facility classified as unimproved was flush/pour flush toilet draining to another place than a sewage network, vault, or septic tank. As of more recent, UNICEF/WHO (2019) reports that 67% of the population had sewer connection in 2017, and that 6% had unimproved, shared, or no sanitation facility. In addition to good quality drinking water and sanitation, good hygiene practices are essen- tial for infectious disease prevention, and especially hand washing with soap at critical times which have globally been found to substantially reduce diarrheal illness (Curtis and Cairn- cross, 2003; Fewtrell et al., 2005; Ejemot et al., 2009; Waddington et al., 2009; Cairncross et al., 2010; Freeman et al., 2014). UNICEF/WHO (2019) reports that 90% of the popu- lation in Egypt had a handwashing facility with soap and water in 2017. However, limited information is available on actial household and community hygiene practices and conditions. 16 Arab Republic of Egypt: Cost of Environmental Degradation 3.3  HEALTH EFFECTS OF INADEQUATE DRINKING WATER, SANITATION, AND HYGIENE Inadequate water supply, sanitation, and hygiene (WASH) causes diarrhea and other infec- tious diseases (Wolf et al., 2014; Pruss-Ustun et al., 2014). Poor sanitation and hygiene increases the risk of parasite infestation. And schistosomiasis is endemic in many parts of Egypt. Poor hand washing practices is a major contributor to diarrhea and respiratory infec- tions in children in many countries (Rabie and Curtis, 2006). Repeated diarrheal infections in early childhood contribute to poor nutritional status (e.g., underweight), as evidenced by research studies in communities with a wide range of diarrheal infection rates in a diverse group of countries (World Bank, 2008). Estimates of some of the health effects of inadequate WASH in Egypt can be provided. This includes diarrheal infections, typhoid/paratyphoid, schistosomiasis, acute lower respiratory infections (ALRI),13 intestinal nematode infections, and trachoma, and child mortality from poor nutritional status caused by inadequate WASH. Inadequate WASH caused an estimated 2.2 billion to 3.7 billion days lived with disease and 4,400 to 9,200 deaths in Egypt in 2017 (tables 3.3–3.4). The vast majority of the days lived with disease are from the high year-round prevalence of intestinal nematode infections and schistosomiasis among millions of people (see below). TABLE 3.3: ESTIMATED DAYS LIVED WITH DISEASE FROM INADEQUATE WATER, SANITATION, AND HYGIENE (WASH) IN EGYPT, 2017 (MILLION DAYS) Low Central High Diarrheal diseases 318 352 387 Typhoid/paratyphoid 0.29 0.34 0.41 Schistosomiasis 417 476 544 Intestinal nematode infections 1,400 1,950 2,725 Trachoma 12 20 31 ALRI 1.39 1.58 1.78 Total days of disease from WASH 2,147 2,799 3,688 Source: Estimates by the author. TABLE 3.4: ESTIMATED DEATHS FROM INADEQUATE WATER, SANITATION, AND HYGIENE (WASH) IN EGYPT, 2017 Low Central High Diarrheal diseases 3,083 4,890 6,934 Typhoid/paratyphoid 98 193 335 Schistosomiasis 233 308 394 ALRI 366 433 509 Indirect from WASH 595 799 1,060 Total deaths from WASH 4,374 6,624 9,231 Source: Estimates by the author. 13ALRI from inadequate handwashing practices (Rabie and Curtis, 2006). Air and Water Pollution 17 The health effects (D) from inadequate WASH are estimated as follows: D = Σ Di = Σ (Bi * AFi) (3.1) where B is the baseline number of deaths or days of disease, AF is the fraction of deaths or days of disease attributable to inadequate WASH, and i is type of disease. Baseline num- ber of deaths, days of disease, and duration of disease are from the GBD 2017 for Egypt. Attributable fractions (AFs) are presented in table 3.5. The AF of 66.5% for diarrheal disease and typhoid/paratyphoid is estimated based on the status of household drinking water and sanitation (see annex 2). The same AF is also applied to the estimate of indirect deaths from diarrhea in young children associated with poor nutritional status (see annex 2). TABLE 3.5: ATTRIBUTABLE FRACTIONS OF DISEASE DUE TO INADEQUATE WATER, SANITATION, AND HYGIENE IN EGYPT, 2017 Diarrheal disease 66.5% Using GBD 2017 methodology Typhoid/paratyphoid 66.5% Using same as for diarrheal diseases Shistosomiasis 100% Fewtrell et al. (2007) Intestinal nematode infections 100% Fewtrell et al. (2007) Trachoma 100% Fewtrell et al. (2007) ALRI 1.87% Using GBD 2017 methodology Days of diarrheal disease from inadequate WASH are based on a baseline diarrheal inci- dence rate of 0.9–1.2 cases per person per year and an average case duration of 5.5 days from GBD 2017 in Egypt, and an AF of 66.5%. Days of typhoid/paratyphoid disease from inadequate WASH are based on a baseline inci- dence of 21,000 to 28,00 cases per year, an average case duration of 21 to 22 days, and an AF of 66.5%. Days of disease from schistosomiasis due to inadequate WASH are estimates based on prev- alence of 1.1 million to 1.5 million people with schistosomiasis at any time during the year, as reported by the GBD 2017 for Egypt. Annual days of disease from inadequate WASH are the prevalence multiplied by 365 days and an AF of 100%. Days of disease from intestinal nematode infections due to inadequate WASH are estimates based on prevalence of 3.8 million to 7.5 million people with intestinal nematode infections at any time during the year, as reported by the GBD 2017 for Egypt. Annual days of disease from inadequate WASH are the prevalence multiplied by 365 days and an AF of 100%. Days of ALRI disease from inadequate WASH are based on a baseline incidence rate of 0.1–0.13 cases per person per year as reported by GBD 2017, an average case duration of about 8.3 days, and an AF of 1.87%. Days of trachoma disease from inadequate WASH are based on a baseline prevalence of 33,000 to 86,000 people with trachoma at any time during the year, as reported by GBD 2017 for Egypt. Annual days of disease from inadequate WASH are the prevalence multi- plied by 365 days and an AF of 100%. 18 Arab Republic of Egypt: Cost of Environmental Degradation Deaths from inadequate WASH are estimated from the baseline deaths reported by the GBD 2017 for Egypt multiplied by the attributable fractions (AF) in table 3.5. The estimated deaths and disease from inadequate WASH in this report are somewhat higher than reported by GBD 2017. The main reasons are: 1) The GBD 2017 is limited to attributing a share of diarrheal disease and ALRI to inadequate WASH, while this report also attributes typhoid/paratyphoid, schistoso- miasis, intestinal nematode infections, and trachoma (see Fewtrell et al., 2007). 2) This report includes an estimate of the indirect effect of inadequate WASH through diarrheal infections on child nutritional status and consequent increase in risk of child mortality (see annex 2). 3.4  COST OF HEALTH EFFECTS The annual cost of the health effects associated with inadequate drinking water, sanitation, and hygiene is estimated at LE 26 billion to 56 billion in 2016/17, with a central estimate of LE 39 billion (table 3.6). The cost is equivalent to about 0.75% to 1.61% of Egypt’s GDP that year, with a central estimate of 1.14%. Cost of mortality is calculated as VSL (LE 3.0 million) multiplied by the estimated number of deaths. Deaths from diarrheal disease account for 74% of deaths and cost of mortality. Cost of morbidity is calculated as a fraction of the average daily wages of LE 155 multiplied by the number of days lived with disease. The fraction of the wage rate is determined by the disability weight (severity) of the disease (see annex 3). Cost of diarrheal disease accounts for 81% and schistosomiasis for 14% of the total cost of morbidity. TABLE 3.6: ESTIMATED ANNUAL COST OF HEALTH EFFECTS OF INADEQUATE WATER, SANITATION, AND HYGIENE IN EGYPT, 2016/17 (LE BILLION) Low Central High Cost of mortality 13.3 20.2 28.1 Cost of morbidity 12.8 19.2 27.9 Total cost of health effects 26.1 39.4 56.0 % equivalent of GDP, 2016/17 0.75% 1.14% 1.61% Source: Estimates by the author. Air and Water Pollution 19 CHAPTER FOUR SUMMARY AND CONCLUSIONS The report finds that 19,200 people died and over 3 billion days were lived with disease in Egypt in 2017 from ambient PM2.5 air pollution in Greater Cairo and inadequate water, sanitation, and hygiene nationwide. The estimated cost of these health effects was equivalent to 2.5% of Egypt’s GDP in 2016/17. The cost of ambient PM2.5 air pollution in Greater Cairo was highest with a central estimate of LE 47 billion, equivalent to 1.35% of GDP. The cost of inadequate drinking water, sanitation, and hygiene was LE 39 billion, equivalent to 1.15% of GDP. However, water-related costs are likely higher than suggested by this fig- ure because of undetermined exposure to lead, other heavy metals, and chemicals through drinking water. On a per capita basis, the cost of ambient air pollution in Greater Cairo was LE 2.7 billion per million people. This is nearly seven times higher than the nationwide cost per million people of inadequate water, sanitation, and hygiene. While the report finds that air quality, in terms of PM2.5 concentrations, improved in Greater Cairo over the period from 1999 to 2016, it was outpaced by population growth, resulting in an increase in annual deaths from ambient PM2.5. Annual deaths from ambient PM2.5 did, however, decline by 8% from 79 to 73 per 100,000 people from 1999 to 2017. The conclusions and recommendations that emerge in this report are: »» Environmental health risk exposure levels in Egypt are a concern, and aggregate health effects and their costs are substantial. »» Controlling and preventing outdoor PM pollution should continue to be a priority. 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Methodology for valuing the health impacts of air pollution: Discussion of challenges and proposed solutions. Prepared by Urvashi, N. and Sall, C. World Bank. Washington DC. World Bank and Institute for Health Metrics and Evaluation. 2016. The Cost of Air Pollu- tion: Strengthening the Economic Case for Action. Washington, DC: World Bank. 24 Arab Republic of Egypt: Cost of Environmental Degradation ANNEX 1 HEALTH EFFECTS OF PARTICULATE MATTER POLLUTION Particulate matter (PM) is the outdoor air pollutant that globally is associated with the largest health effects. Health effects of PM exposure include both premature mortality and morbid- ity. The most substantial health effects of PM2.5 are cardiovascular disease, chronic obstruc- tive pulmonary disease (COPD), lung cancer, diabetes Type II, and acute lower respiratory infections (ALRI) (Pope et al., 2009, 2011; Lim et al., 2012; Mehta et al., 2013; Stanaway et al., 2018). The methodologies to estimate these health effects have evolved as the body of research evidence has increased. A1.1  AMBIENT PARTICULATE MATTER AIR POLLUTION Over a decade ago, Pope et al. (2002) found elevated risk of cardiopulmonary (CP) and lung cancer (LC) mortality from long-term exposure to outdoor PM2.5 in a study of a large population of adults 30 or more years of age in the United States. CP mortality includes mortality from respiratory infections, cardiovascular disease, and chronic respiratory dis- ease. The World Health Organization used the study by Pope et al. when estimating global mortality from outdoor air pollution (WHO, 2004). Since then, recent research suggests that the marginal increase in relative risk of mortality from PM2.5 declines with increasing con- centrations of PM2.5 (Pope et al., 2009, 2011). Pope et al. (2009, 2011) derive a shape of the PM2.5 exposure-response curve based on studies of mortality from active cigarette smoking, second-hand cigarette smoking (SHS), and outdoor PM2.5 air pollution. A1.2  AN INTEGRATED EXPOSURE-RESPONSE FUNCTION The Global Burden of Disease Project takes Pope et al. (2009, 2011) some steps further by deriving an integrated exposure-response (IER) relative risk function (RR) for disease out- come, k, in age-group, l, associated with exposure to fine particulate matter pollution (PM2.5) both in the outdoor and household environments: RR (x )kl = 1 for x < xcf (A1.1a)  −βkl (x −xcf )  ρkl  RR (x )kl = 1 + α kl  1 − e   for x ≥ xcf (A1.1b)     Air and Water Pollution 25 where x is the ambient concentration of PM2.5 in µg/m3 and xcf is a counterfactual concen- tration below which it is assumed that no association exists. The function allows prediction of RR over a very large range of PM2.5 concentrations, with RR(xcf + 1) ~ 1 + αβ and RR(∞) = 1 + α being the maximum risk (Burnett et al., 2014; Shin et al., 2013). The parameter values of the risk function are derived based on studies of health outcomes associated with long-term exposure to ambient particulate matter pollution, second hand tobacco smoking, household air pollution from solid cooking fuels, and active tobacco smok- ing (Burnett et al., 2014). This provides a risk function that can be applied to a wide range of ambient PM2.5 concentrations around the world, as well as to high household air pollution levels of PM2.5 from combustion of solid fuels. The disease outcomes assessed in this report, as in GBD 2017, are ischemic heart disease (IHD), cerebrovascular disease (stroke), lung cancer, chronic obstructive pulmonary disease (COPD), diabetes Type II, and acute lower respiratory infections (ALRI). The risk func- tions for IHD and cerebrovascular disease are age specific with five-year age intervals from 25 years of age, while singular age-group risk functions are applied for lung cancer, COPD, and diabetes Type II from 25 years of age, and ALRI for all age groups (Stanaway et al., 2018). The attributable fraction of disease from PM2.5 exposure is calculated by the following expression:  x + x     x + x     RR  i −1   /  RR  i −1   + 1  ∑ i =1 i   ∑ i =1 i   n n AF = P  i   − 1  P  i   − 1  (A1.2)    2         2       where Pi is the share of the population exposed to PM2.5 concentrations in the range xi–1 to xi. This attributable fraction is calculated for each disease outcome, k, and age group, l. The disease burden (B) in terms of annual cases of disease outcomes due to PM2.5 exposure is then estimated by: ∑ ∑ t s B= k =1 l =i Dkl AFkl (A1.3) where Dkl is the total annual number of cases of disease, k, in age group, l, and AFkl is the attributable fraction of these cases of disease, k, in age group, l, due to PM2.5 exposure. A1.3  BASELINE HEALTH DATA Annual cases of premature deaths and disease (B) from ambient PM2.5 are estimated by applying attributable fractions (AFs) to baseline numbers of deaths or cases of disease (D), as described in the previous section. This section presents the estimation of baseline deaths in Greater Cairo for each of the six health outcomes associated with ambient PM2.5 exposure. This is undertaken in two main steps: 1) Cause-specific number of deaths from the GBD 2017 for Egypt in 2017 are adjusted to reflect the national crude death rate (CDR) reported by CAPMAS (2018); and 2) An additional adjustment is made to reflect that the population in Greater Cairo is older than the national average, and therefore has a higher death rate than the national average. 26 Arab Republic of Egypt: Cost of Environmental Degradation TABLE A1.1: POPULATION AND MORTALITY IN EGYPT Mid-Year CAPMAS Crude CAPMAS GBD 2017 Population Death Rate (per Total Deaths Total Deaths Year (million) 1,000 population) (000) (000)* 1999 62.6 6.4 401 386 2009 76.9 6.2 477 449 2017 95.2 5.7 546 500 Source: Egypt in Figures 2018 (CAPMAS, 2018). * http://www.healthdata.org/ Baseline crude death rates (CDR) per 1,000 population and total annual deaths in Egypt are reported in “Egypt in Figures 2018” by CAPMAS (2018).14 The CDR declined by around 10% from 1999 to 2017, while total annual deaths increased by 36% as a result of popula- tion growth. The Global Burden of Disease 2017 (GBD 2017) also reports annual deaths in Egypt for the same years (table A1.1). These estimates are 4–8% lower than the number of cases reported by CAPMAS (2018). Number of deaths reported by GBD 2017 are therefore adjusted to reflect the CDR reported by CAPMAS. CAPMAS (2018) reports CDRs for urban and rural areas nationwide and within each gov- ernorate in 2017. The CDRs vary substantially between urban (CDR = 7.9) and rural areas (CDR = 4.1) and across governorates (e.g., CDR = 9.0 in Cairo; CDR = 4.0 in Fayoum), compared to the national average of 5.7. According to Baseera/NPC/UNFPA (2016), a major reason for the high CDRs in urban areas (including Cairo) is the high demand for the higher quality of health services available in these areas. Many people in the rural areas therefore travel to the cities for treatment when they have serious health conditions. When deaths occur, they are registered in these cities, resulting in higher recorded CDRs. The CDRs for urban areas of each governorate are therefore not applied to estimate the baseline number of deaths in Greater Cairo. An approach to estimating baseline deaths in Greater Cairo is therefore applied here based on the difference in age distribution in urban and rural areas, because death rates are higher among older individuals than among younger individuals. The population in Egypt is older in urban than in rural areas in Egypt (table A1.2). The population in Greater Cairo is also older than the national average (table A1.3). The cause-specific death rates for each age- group in GBD 2017 for Egypt are therefore adjusted to Greater Cairo to reflect these differ- ences in age distribution. TABLE A1.2: AGE DISTRIBUTION IN EGYPT ACCORDING TO THE POPULATION CENSUS 2017 Age Group National Urban Rural 65+   3.86%   4.24%   3.58% 15–64  61.91%  64.99%  59.64% 0–14  34.23%  30.77%  36.78% Total 100.00% 100.00% 100.00% Source: Sayed (2018). 14Central Agency for Public Mobilization and Statistics (CAPMAS), Cairo, Egypt. Air and Water Pollution 27 TABLE A1.3: AGE DISTRIBUTION IN GREATER CAIRO ACCORDING TO THE POPULATION CENSUS 2017 Age Group Cairo Giza Urban Kalyoubia Urban Greater Cairo 65+   4.84%   3.39%   2.97%   4.14% 15–64  68.32%  64.65%  64.82%  66.71% 0–14  26.84%  31.96%  32.21%  29.16% Total 100.00% 100.00% 100.00% 100.00% Source: Age distribution in Cairo, Giza, and Kalyoubia is from Census 2017 data in Sayed (2018). Age distribution in Greater Cairo is the population weighed average distribution of the former three. Note: Age distribution in 10th of Ramadan city is not included here (not readily available). As its population is a very small fraction of the total population in Greater Cairo, this has minimal influence on the estimated age distribution in Greater Cairo. TABLE A1.4: ESTIMATES OF CAUSE-SPECIFIC ANNUAL DEATHS IN EGYPT IN 2017 Lung Diabetes Age Group IHD Stroke COPD Cancer Type II ALRI All Ages 158,822 50,841 12,449 4,208 9,724 23,097 25+ 158,017 50,094 12,130 4,150 9,659 25 to 29     860    323 30 to 34   1,626    510 35 to 39   2,971    919 40 to 44   4,965  1,419 45 to 49   8,305  2,181 50 to 54  12,931  3,318 55 to 59  17,055  4,529 60 to 64  22,239  6,024 65 to 69  25,060  7,575 70 to 74  20,994  7,273 75 to 79  16,973  6,493 80+  24,035  9,530 Source: GBD 2017 (http://www.healthdata.org/) In order to estimate the health effects of ambient PM2.5 air pollution annual deaths are required for each of the six causes for which the GBD 2017 provides exposure-risk functions. The GBD 2017 provides such estimates of cause-specific annual deaths based on Egyp- tian vital registration, household surveys (e.g., Egypt Demographic and Health Survey), spe- cialized surveys and reports, and the broader international evidence of the cause-specific structure of mortality by country income level, socioeconomic characteristics, and other determinants of cause-specific mortality rates.15 The GBD 2017 baseline deaths in Egypt for the six relevant causes of deaths are presented in table A1.4. Deaths are presented by age group (ages 25+ years) for ischemic heart disease (IHD) and stroke, for aggregate age group 25+ years of age for COPD, lung cancer, and 15See: http://ghdx.healthdata.org/gbd-2017/data-input-sources 28 Arab Republic of Egypt: Cost of Environmental Degradation TABLE A1.5: ADJUSTMENT FACTORS FOR ANNUAL DEATHS IN GREATER CAIRO, 2017 IHD Stroke COPD LC Diabetes II ALRI (1) Adjustment to GBD 2017 to reflect the 1.094 1.106 1.100 1.066 1.070 1.108 national CDR (2) Adjustment to Greater Cairo to reflect 1.094 1.070 1.078 1.132 1.138 0.936 differences in age distribution (3) Adjustment factors for Greater Cairo 1.197 1.183 1.186 1.208 1.218 1.038 Source: Estimates by the author based on CAPMAS (2018), GBD 2017 for Egypt, and the Egypt Population Census 2018 age distributions. diabetes Type II, and for all age groups for acute lower respiratory infections, as required by the GBD 2017 exposure-risk functions. The annual deaths in table A1.4 are in Egypt nationwide. They therefore need to be adjusted to Greater Cairo. This is undertaken in five steps: 1) Apply the age-specific death rates in Egypt in GBD 2017 to the age distribution in the Egypt Population Census 2017 (instead of using the age distribution in GBD 2017). This raises total annual baseline deaths from 500,000 in GBD 2017 to 520,000. 2) Adjust the deaths from step 1 (520,000) to the total annual deaths reported by CAPMAS in table A1.1 (546,000) and perform the same adjustment to the six health outcomes associated with PM2.5 exposure. Steps 1 and 2 result in the adjustment factors in (1) in table A1.5. 3) Adjust the annual cause-specific deaths that result from Step 2 for the difference in age distribution between Greater Cairo and the national average. This results in the adjustment factors in (2) in table A1.5. 4) Multiply the adjustment factors in (1) and (2) in table A1.5 to get the total adjustment factors (3) for Greater Cairo. 5) Adjust by the population share of Greater Cairo, i.e., 17.36/95.2 = 0.182. The adjustment factors for Greater Cairo are fairly similar for five of the health outcomes. The factor is substantially lower for ALRI. This is because a large share of deaths from ALRI are among young children, and young children are fewer as a percentage of the pop- ulation in Greater Cairo than nationally. The adjustment factors (3) in table A1.5 and the Greater Cairo population share (0.182) are multiplied by the annual deaths in table A1.4 to arrive at estimated deaths in Greater Cairo (table A1.6). A1.4.  ESTIMATING HEALTH EFFECTS Estimating the health effects of ambient PM2.5 concentrations is undertaken in three steps: »» The first step is to estimate the relative risk (RR) of death from each of the six health outcomes in table A1.6 associated with ambient PM2.5 concentrations in Greater Cairo. This is performed by applying x = 76 (μg/m3) and xcf = 4.15 (μg/m3) to equa- tion A1.1b.16 16The parameter values of α, β, and ρ are estimated from the RR(x) reported by the GBD 2017 in Stanaway et al. (2018) Supplement 1 Appendix Table 6b. Air and Water Pollution 29 TABLE A1.6: ESTIMATES OF CAUSE-SPECIFIC ANNUAL DEATHS IN GREATER CAIRO IN 2017 Lung Diabetes Age Group IHD Stroke COPD Cancer Type II ALRI All Ages 34,655 10,966 2,692 927 2,160 4,370 25+ 34,480 10,805 2,623 914 2,145 25 to 29    188     70 30 to 34    355    110 35 to 39    648    198 40 to 44  1,083    306 45 to 49  1,812    470 50 to 54  2,822    716 55 to 59  3,722    977 60 to 64  4,853  1,299 65 to 69  5,468  1,634 70 to 74  4,581  1,569 75 to 79  3,704  1,400 80+  5,244  2,056 Source: Estimates by the author. TABLE A1.7: ESTIMATED ANNUAL DEATHS FROM AMBIENT PM2.5 AIR POLLUTION IN GREATER CAIRO, 2017 Lung Diabetes IHD Stroke COPD Cancer Type II ALRI Total PM2.5 (μg/m3) 76 76 76 76 76 76 76 Relative risk (RR) 1.275 1.174 1.534 1.402 1.439 1.637 Attributable fraction (AF) 0.2157 0.1482 0.3479 0.2868 0.3053 0.3893 Annual deaths from PM2.5 7,437 1,601 912 262 655 1,701 12,569 Source: Estimates by author. »» The next step is to calculate the attributable fraction (AF) of deaths in table A1.6 that is due to ambient PM2.5 concentrations. This is performed by equation A1.2, using P = 1 assuming that the whole population of Greater Cairo is exposed to the PM2.5 concentrations of 76 μg/m3. »» The final step is to multiply the AFs with the annual deaths in table A1.6. Relative risks (RR) and attributable fractions (AFs) for ambient PM2.5 air pollution in Greater Cairo are presented in table A1.7. The RR and AF for IHD and stroke are calculated by age group. The weighted average RR and AF are presented in the table. 30 Arab Republic of Egypt: Cost of Environmental Degradation ANNEX 2 HEALTH EFFECTS FROM WATER, SANITATION, AND HYGIENE Inadequate water, sanitation, and hygiene (WASH) is directly and indirectly affecting pop- ulation health. Directly, poor WASH causes diarrheal infections and other health effects which in turn lead to mortality especially in young children (Wolf et al., 2014; Pruss-Ustun et al., 2014; Fewtrell et al., 2007). Indirectly, poor WASH contributes to poor nutritional sta- tus in young children through the effect of diarrheal infections (World Bank, 2008; Fewtrell et al., 2007; Larsen, 2007).17 Poor nutritional status in turn increases the risk of child mor- tality from disease (Fishman et al., 2004; Black et al., 2008; Olofin et al., 2013). Child under- weight is the nutritional indicator most commonly used in assessing the risk of mortality from poor nutritional status (Fishman et al., 2004). DIRECT HEALTH EFFECT Estimating the direct health effect of inadequate WASH involves estimating the attributable fraction (AF) of diarrheal disease due to WASH. This is undertaken separately for drinking water, sanitation, and hygiene (handwashing) to estimate the joint attributable fraction. The relative risks of disease applied here are from the GBD 2017. DRINKING WATER The Joint Monitoring Programme for Water Supply and Sanitation (JMP) by WHO/ UNICEF estimates that 98% of the population in Egypt had a piped water supply and 2% had another improved or unimproved water source in 2017 (UNICEF/WHO, 2019). Additionally the Egypt DHS 2014 reports that a little over 10% of the population filter their water prior to drinking. The drinking water population distribution and associated relative risks (RR) of diarrheal disease are presented in table A2.1. The relative risks are from the GBD 2017. SANITATION The Joint Monitoring Programme for Water Supply and Sanitation (JMP) by WHO/ UNICEF estimates that 94% of the population in Egypt had improved, non-shared sani- tation and 6% had unimproved or shared sanitation in 2017 (UNICEF/WHO, 2019). The 17Repeated infections, and especially diarrheal infections, have been found to significantly impair weight gains in young children. Studies documenting and quantifying this effect have been conducted in communities with a wide range of infection loads in a diverse group of countries. World Bank (2008) provides a review of these studies. Air and Water Pollution 31 TABLE A2.1: RELATIVE RISK OF DIARRHEAL DISEASE FROM DRINKING WATER IN EGYPT, 2017 Treatment Population Type of Drinking Water Status RR RR-1 Distribution Unimproved water source Untreated 11.501 10.501  0.9% Filtered  4.789  3.789  0.1% Other improved Untreated  9.428  8.428  0.9% Filtered  3.926  2.926  0.1% Piped water supply Chlorinated  1.653  0.653 88% Filtered  1.000  0.000 10% Source: RRs are from GBD 2017 in Stanaway et al. (2018) Supplement. Population distribution is from UNICEF/WHO (2019). TABLE A2.2: RELATIVE RISK OF DIARRHEAL DISEASE FROM SANITATION IN EGYPT, 2017 Population Type of Sanitation RR RR-1 Distribution Unimproved sanitation 3.242 2.242  6% Basic improved 2.595 1.595 27% Sewage system 1.000 0.000 67% Source: RRs are from GBD 2017 in Stanaway et al. (2018) Supplement. Population distribution is from UNICEF/WHO (2019). same report states that 67% of the population had a sewer connection. The sanitation pop- ulation distribution and associated relative risks (RR) of diarrheal disease are presented in table A2.2. The relative risks are from the GBD 2017. HANDWASHING The Joint Monitoring Programme for Water Supply and Sanitation (JMP) by WHO/ UNICEF reports that 90% of the population in Egypt had a facility with soap and water for handwashing in 2017 (UNICEF/WHO, 2019). The population distribution with and without a facility and associated relative risks (RR) of diarrheal disease are presented in table A2.3. The relative risks are from the GBD 2017. TABLE A2.3: RELATIVE RISK OF DIARRHEAL DISEASE FROM LACK OF HANDWASHING FACILITY IN EGYPT, 2017 Population with or without Handwashing Population Facility with Soap and Water RR RR-1 Distribution With facility 1.000 0.000 90.0% Without facility 1.908 0.908 10% Source: RRs are from GBD 2017 in Stanaway et al. (2018) Supplement. Population distribution is from UNICEF/WHO (2019). 32 Arab Republic of Egypt: Cost of Environmental Degradation TABLE A2.4: ATTRIBUTABLE FRACTIONS OF DIARRHEAL DISEASE DUE TO INADEQUATE WASH IN EGYPT Attributable Fraction (AF) Unsafe drinking water 42.9% Unsafe sanitation 36.1% Inadequate handwashing  8.3% Joint AF due to inadequate WASH 66.5% Source: Estimates by the author. JOINT ATTRIBUTABLE FRACTION Applying the standard AF formula (see eq. A2.1 below) to the relative risks (RR) and pop- ulation distributions in tables A4.1–4.3 indicates that 43% of diarrheal disease in Egypt is due to unsafe drinking water, that 36% is due to inadequate sanitation, and that 8% is due to inadequate handwashing. Applying the joint attributable fraction formula in Gakidou et al. (2007) to these individual AFs indicates that 67% of diarrheal disease is due to inadequate WASH (table A2.4).18 This joint AF is also applied to typhoid/paratyphoid as well as to the indirect effect discussed below. INDIRECT HEALTH EFFECT Estimating the indirect mortality effects of diarrhea from WASH is undertaken here in two stages. First, the fraction of under-five child mortality attributable to child underweight is estimated. This follows the methodology in Olofin et al. (2013). Second, a fraction of under- five child mortality from underweight is attributed to diarrheal infections from WASH in early childhood using the approach in Fewtrell et al. (2007). An alternative approach to estimating the fraction of mortality attributable to diarrheal infections from WASH is the methodology developed in Larsen (2007) and World Bank (2008). This, however, requires estimation of counterfactual prevalence rates of child under- weight (prevalence of underweight in the absence of diarrheal infections) from the original survey data of child nutritional status. As the original survey data are often not readily avail- able, the approach in Fewtrell et al. is used here instead. The approach in Fewtrell et al. gives a somewhat lower estimate of indirect mortality from WASH than the Larsen and World Bank methodology. Estimates of increased risk of cause-specific mortality in children under five years of age with mild, moderate, and severe underweight is presented in table A2.5 based on Olofin et al. (2013). These relative risk ratios are applied to prevalence rates of child underweight to estimate attributable fractions (AFj) of mortality by cause, j, from child underweight as follows: n ∑ P (RR i ji − 1) AF j = n i =1 (A2.1) ∑ P (RR i =1 i ji − 1) + 1 18AF n j = 1 – II k =1 (1 – AFk) for k risk factors. Air and Water Pollution 33 TABLE A2.5: RELATIVE RISK OF MORTALITY FROM SEVERE, MODERATE, AND MILD UNDERWEIGHT IN CHILDREN UNDER FIVE Cause of Mortality (j)/ Underweight Category (i) Severe Moderate Mild None Diarrhea 11.56 2.86 1.73 1.00 Acute lower respiratory infections (ALRI) 10.10 3.11 1.85 1.00 Measles  7.73 3.12 1.00 1.00 Malaria  1.29 1.65 1.26 1.00 Other infectious diseases (meningitis,  8.28 1.58 1.54 1.00 hepatitis) Source: Olofin et al. (2013). ALRI is acute lower respiratory infections. Relative risks are in relation to underweight according to the WHO Child Growth Standards. where RRji is relative risk of mortality from cause, j, for children in each of the underweight categories, i, in table A2.5; and Pi is the underweight prevalence rate. Annual cases of mortality from child underweight (by cause, “j”, in table A2.5) are estimated as follows: M j = C ∗ U 5 MR ∗ AF j β j (A2.2) where C is annual live child births (thousands), U5MR is the under-five child mortality rate (per 1,000 live births), and βj is the fraction of under-five mortality by cause “j”. Annual under-five child mortality from water, sanitation, and hygiene (W) is then estimated as follows: j =m W = ∑γ j =1 j M j (A2.3) where γj is the fraction of child underweight mortality (Mj) attributed to water, sanitation, and hygiene through diarrheal infections in early childhood. WHO (Fewtrell et al., 2007) uses γj = 0.5 for ALRI, measles, malaria and “other infectious diseases.” This is adjusted here by the fraction of diarrheal disease attributed to water, sanitation, and hygiene, i.e., 0.665 in the case of Egypt (see table A2.4). Thus, the adjusted γj is 0.3325. 34 Arab Republic of Egypt: Cost of Environmental Degradation ANNEX 3 VALUATION OF HEALTH EFFECTS A3.1 ILLNESS Two valuation techniques are commonly used to estimate the cost of morbidity or illness. The cost-of-illness (COI) approach includes cost of medical treatment and value of income and time lost to illness. The second approach equates cost of illness to individuals’ WTP for avoiding an episode of illness. Studies in many countries have found that individuals’ WTP to avoid an episode of an acute illness is generally much higher than the cost of treatment and value of income and time losses (Alberini and Krupnick, 2000; Cropper and Oates, 1992; Dickie and Gerking, 2002; Wilson, 2003). In most studies of the health effects and cost of ambient air pollution it is estimated that cost of mortality represent 70% to 90% of total cost, and cost of morbidity or illness represents 10% to 30%. It is therefore more important to reach a consensus on valuation of mortality risk than on incidence of morbidity. For infectious diseases from inadequate drinking water, sanitation, and hygiene, cost of morbidity can, however, be quite a substantial share, espe- cially in countries with low fatality rates (but high non-fatal incidence rates) of these infec- tious diseases. Estimating morbidity often requires much more and less accessible baseline health data than estimating mortality. One option is therefore to use the estimates of “years lived with dis- ability” (YLD) from the relevant illnesses in Egypt from the GBD studies. YLD can then be converted to days lived with disease by applying the disability weights in the GBD studies. The cost of days lived with disease can then be estimated. The approach applied in this report involve the following steps: 1) Estimates of YLDs are converted to days lived with disease by applying the disability weights in the GBD 2017 for Egypt. 2) The cost of a day lived with disease is then approximated as a fraction of the average daily wage rate to reflect income losses from illness, health expenditure, time losses, and the welfare cost of pain and suffering. 3) The cost of a day of illness is also applied to individuals without income, because ill- ness prevents most of these individuals from undertaking household work and other activities with a social value, as well as involves all the non-income impacts of illness. Air and Water Pollution 35 The cost of morbidity is thus estimated as follows. First, days lived with disease (M) are cal- culated as: M = En n i = 1 Mi = E i = 1(YLDi * 365/di) (A3.1) where YLDi is years lived with disability from disease, i, and di is the disability weight for disease, i. The disability weight for each disease is calculated from the GBD 2017 for Egypt. The disability weight is a measure used in GBD to calculate YLDs from days of illness, dis- ease, or injury. The disability weights for the six diseases associated with exposure to ambient PM2.5 in Egypt range from 0.035 for ischemic heart disease (IHD) to 0.226 for lung cancer (table A3.1). Disability weights for diseases associated with inadequate water, sanitation, and hygiene in this report in Egypt range from 0.0006 for intestinal nematode infections to 0.167 for typhoid/paratyphoid (table A3.2). TABLE A3.1: DISABILITY WEIGHTS FOR EGYPT ASSOCIATED WITH AMBIENT PM2.5 IN EGYPT Disability Weights IHD 0.035 Stroke 0.150 COPD 0.093 Lung cancer 0.226 ALRI 0.061 Diabetes II 0.086 Source: Disability weights for Egypt are calculated from data at http://www.healthdata.org/ TABLE A3.2: DISABILITY WEIGHTS FOR EGYPT ASSOCIATED WITH INADEQUATE WATER, SANITATION, AND HYGIENE Disability Weights Diarrheal disease 0.1130 Typhoid/paratyphoid 0.1670 Schistosomiasis 0.0140 Intestinal nematode infections 0.0006 Trachoma 0.0700 ALRI 0.0610 Source: Disability weights for Egypt are calculated from data at http://www.healthdata.org/ The cost of a day lived with disease, i, is thus: ci = w di/D (A3.2) where w is average daily wage rate and di disability weight for disease, i, and D is a disability weight that corresponds to a severity of disease for which the cost of a disease day is assumed equal to the average wage rate. D is here set at 0.4. This is a disability weight associated with severely restricted work and leisure activity from disease and substantial medical cost, e.g., severe COPD ( d = 0.41), distance vision blindness (d = 0.19) and Stage V chronic kidney disease (d = 0.57) due to diabetes, and stroke with severity level 3 (d = 0.32) and 4 (d = 0.55). 36 Arab Republic of Egypt: Cost of Environmental Degradation Cost of morbidity (C) is calculated as follows: C = Σn i = 1 (ci Mi) (A3.3) Average daily wage rate is estimated as follows: w = GDP/L/250 * s (A3.4) where GDP is the country’s total GDP, L is total labor force, s is labor compensation share of GDP, and annual working days is averaging 250. S = 0.35 for Egypt from PENN World Table, Version 9. A3.2 MORTALITY The predominant measure of the social cost of premature death used by economists is the value of statistical life (VSL). VSL is based on valuation of mortality risk. Everyone in society is constantly facing a certain risk of dying. Examples of such risks are occupational fatality risk, risk of traffic accident fatality, and environmental mortality risks. It has been observed that individuals adjust their behavior and decisions in relation to such risks. For instance, individuals demand a higher wage (a wage premium) for a job that involves a higher occupa- tional risk of a fatal accident than in other jobs, individuals may purchase safety equipment to reduce the risk of death, and/or individuals and families may be willing to pay a premium or higher rent for properties (land and buildings) in a cleaner and less polluted neighborhood or city. Through the observation of individuals’ choices and willingness to pay for reducing mortal- ity risk (or minimum amounts that individuals require to accept a higher mortality risk), it is possible to estimate the value to society of reducing mortality risk, or, equivalently, measure the social cost of a particular mortality risk. For instance, it may be observed that a certain health hazard has a mortality risk of 2.5/10,000. This means that 2.5 individuals die from this hazard for every 10,000 individuals exposed. If each individual on average is willing to pay US$40 for eliminating this mortality risk, then every 10,000 individuals are collectively willing to pay US$400,000. Dividing this amount by the risk gives the VSL of US$160,000. Mathematically it can be expressed as follows: VSL = WTPAve * 1/R (A3.5) where WTPAve is the average willingness-to-pay per individual for a mortality risk reduction of magnitude R. In the illustration above, R = 2.5/10 000 (or R = 0.00025) and WTPAve = US$40. Thus, if 10 individuals die from the health risk illustrated above, the cost to society is 10 * VSL = 10 * US$0.16 million = US$1.6 million. The main approaches to estimating VSL are through revealed preferences and stated prefer- ences of people’s WTP for a reduction in mortality risk or their willingness-to-accept (WTA) an increase in mortality risk. Most of the studies of revealed preferences are hedonic wage studies, which estimate labor market wage differentials associated with differences in occu- pational mortality risk. Most of the stated preference studies rely on contingent valuation methods (CVM), which in various forms asks individuals about their WTP for mortality risk reduction. Air and Water Pollution 37 Studies of WTP for a reduction in risk of mortality have been carried out in numerous coun- tries. A commonly used approach to estimate VSL in a specific country is therefore to use a benefit transfer (BT) based on meta-analyses of WTP studies from other countries. Several meta-analyses have been conducted in the last two decades (e.g., Mrozek and Taylor, 2002; Viscusi and Aldy, 2002; Kochi et al., 2006; Navrud and Lindhjem, 2010). Meta-analyses assess characteristics that determine VSL, such as household income, size of risk reduction, other individual and household characteristics, and often characteristics of the methodolo- gies used in the original WTP studies. Most of the meta-analyses of VSL are entirely or predominantly based on hedonic wage studies. The meta-analysis prepared for the OECD is, however, exclusively based on stated preference studies, arguably of greater relevance for valuation of mortality risk from envi- ronmental factors than hedonic wage studies (Navrud and Lindhjem, 2010; Lindhjem et al., 2011; OECD, 2012). These stated preference studies are from a database of more than 1,000 VSL estimates from multiple studies in over 30 countries, including in developing countries (www.oecd.org/env/policies/VSL). The World Bank (2016) presents a benefit transfer methodology for valuing mortality from environmental health risks, drawing on the empirical literature of VSL, especially OECD (2012). The methodology is applied in the recent publication by the World Bank and IHME (2016) on the global cost of air pollution. The proposed benefit transfer function is: ∈  Y  c ,n  VSLc ,n = VSLOECD ∗      (A3.6)   OECD  Y  where VSLc,n is the estimated VSL for country c in year n, VSLOECD is the average base VSL in the sample of OECD countries with VSL studies (US$3.83 million), Yc,n is GDP per capita in country c in year n, and YOECD is the average GDP per capita for the sample of OECD countries (US$37,000), and  an income elasticity of 1.2 for low- and middle- income countries and 0.8 for high income countries. All values are in purchasing power par- ity (PPP) prices. VSLc,n must therefore be converted to local currency using PPP exchange rates, available in the World Development Indicators by the World Bank. This approach provides a VSL for Egypt in the amount of LE 3.0 million in 2016/17, based on a GDP per capita of LE 37,192 in 2016/17 according to MOF (2018). The VSL is 82 times GDP per capita. 38 Arab Republic of Egypt: Cost of Environmental Degradation 1818 H Street, NW Washington, D.C. 20433 USA Telephone: 202-473-1000 Internet: www.worldbank.org/environment