Philippine Environmental Degradation

Environmental Degradation due to
Selected Economic Activities
Republic of the Philippines
NATIONAL STATISTICAL COORDINATION BOARD

(PAMBANSANG LUPON SA UGNAYANG PANG-ESTADISTIKA)
UNITED NATIONS DEVELOPMENT PROGRAMME

June 2000
Foreword
FOREWORD
The National Statistical Coordination Board (NSCB) takes great pride in
presenting this publication, Environmental Degradation Due To Selected Economic
Activities, an output of the Environment and Natural Resources Accounting (ENRA)
Subprogramme of the Integrated Environmental Management for Sustainable
Development (IEMSD) Programme and the ENRA II Project, both funded by the
United Nations Development Programme (UNDP).
This publication is a compilation of environmental accounts estimating the
degradation of the environment brought about by selected economic activities from
1988 to 1994. It covers five (5) major economic sectors: Agriculture, Fishery and
Forestry, Manufacturing, Mining, Electricity Generation and Transport Services. All
estimates are given in both physical and monetary terms, except for the estimates on
Electricity Generation, which are expressed only in physical terms.
The estimates for Agriculture, Fishery and Forestry cover four (4) economic
activities: Upland Palay Farming, Intensive Shrimp Aquaculture, Hog Raising and
Logging of Dipterocarp and Pine Forests. The estimates for Manufacturing, on the
other hand, cover seven (7) economic activities. These are the Tuna Canning
Industry, Textile Industry, Leather Tanning, Paint Manufacturing, Sugar Milling,
Cement Manufacturing and Petroleum Refining. Other activities covered are Smallscale Gold Mining for the Mining Sector; Diesel, Bunker and Coal-fired power plants
for Electricity Generation; and Land-based Transportation for the Transport Services
sector.
This compilation paves the way towards the incorporation of environmental
accounts into the existing Philippine System of National Accounts (PSNA), which at
present, does not account for the depletion of natural resources and the degradation
of the environment due to economic activities. With this compilation, the NSCB and
member agencies of the Philippine Economic-Environment and Natural Resources
Accounting (PEENRA) System hope to address the need for integrating
environmental concerns in socio-economic planning and decision making towards the
sustainable development aspirations highlighted in both the global and Philippine
Agenda 21. Through this publication, we hope to present a more reliable assessment
of our countrys natural resources and the state of the environment.
Finally, we would like to thank all those who made this publication possible,
particularly the UNDP for providing the necessary financial assistance, the initial
efforts of ENRAP in estimating environmental degradation, the United Nations
Statistics Division (UNSD) for their technical assistance, and all the government
agencies who aided us in compiling these environmental accounts.
Environmental Degradation Due to Selected Economic Activities
Foreword
FOREWORD
More often than not, mans economic activities place undue stress to the
environment either as a sink for unwanted by-products and wastes or as a resource
of raw materials needed to support the increasing demands of the population.
Unregulated economic activities while stimulating the growth of cities also turn them
into environmental hot spots as they also contribute to atmospheric pollution brought
about by traffic and the concentration of vehicles emitting dangerous fumes. Cities
generate tons of garbage that put small communities at risk where such are usually
dumped.
However, there is currently very limited data which could indicate the costs of
the flow of natural resources to economic activities. In fact, the indicators from the
conventional System of National Accounts (SNA), as a measure of social and
economic performance, do not reflect the negative effects of pollution, mineral
exploration, forest denudation, depletion of marine resources among other things that
are brought about by development activities deemed necessary to propel economic
growth. And to a great extent, the environmental costs of economic activities were
evaluated on ad hoc basis, if not totally ignored.
It is difficult to account for the loss of such vital natural assets as forests,
fishery resources, clean air and water, nor reconcile positive growth indicators with
the negative effects brought by such growth. This UNDP-assisted publication on
Environmental Degradation Due To Selected Economic Activities hopefully would be
an initial step at looking seriously into a system of national accounts that finally puts
on track tools and methodologies that would aid in the pricing of natural resources
and environment and in the accounting of both the positive and negative effects of
development. Through the incorporation of environmental accounts in the SNA, more
comprehensive and reliable indicators could be generated that would enhance
development planning towards sustainable development.
Congratulations to the NSCB and to those who have contributed to this
publication.
ii
List of Tables
MANUFACTURING INDUSTRY
Tuna Canning Industry
3.1.1
Volume of Tuna Fish Canned, BOD5 Effluents and PM Emissions, In

Metric Tons, 1988-1994 .................................................................................... 60
3.1.2
Total Environmental Cost: Control of BOD5 and PM, In Thousand

Pesos, 1988-1994 ............................................................................................. 61
3.1.3
Environmentally Adjusted Net Value Added (EVA) of Fish Canning

Industry, In Thousand Pesos (At Current Prices), 1988-1994 .......................... 62
Textile Industry
3.2.1
Volume of Production of Cotton Textile Industry, BOD5 and PM, In

Metric Tons, 1988-1994 .................................................................................... 68
3.2.2
Environmental Degradation Cost for BOD5 and PM, in Thousand

Pesos, 1988-1994 ............................................................................................. 69
3.2.3
Environmentally Adjusted Net Value Added (EVA) of Textile Industry,

In Thousand Pesos (At Current Prices), 1988-1994......................................... 69
Leather Tanning
3.3.1
Average Production of Leather, Wastewater Flow Ratio and BOD

Load, By Size of Tanneries, 1994..................................................................... 76
3.3.2
Average Cost of Treating Wastewater, In Pesos, 1994.................................... 77
3.3.3
Estimated BOD In Wastewater Discharges of Beamhouse and

Tanneries, By Size, In Metric Tons, 1988-1994................................................ 77
3.3.4
Total Cost of Treating Wastewater In Leather Tanning Industry, In

Thousand Pesos, 1988-1994............................................................................ 78
3.3.5
Environmentally Adjusted Net Value Added (EVA), In Thousand

Pesos (At Current Prices), 1988-1994 .............................................................. 78
Paint Manufacturing
3.4.1
Volume of Production, VOC and PM10 Emissions, In Metric Tons,

and PM Control Cost, In Thousand Pesos, 1988-1994 .................................... 88
3.4.2

iv
List of Tables
Sugar Milling
3.5.1
Raw Sugar Production, BOD5 Effluents and PM Emissions, In Metric

Tons, 1988-1994 ............................................................................................... 96
3.5.2
Environmental Cost: BOD5 and PM Control Cost, In Thousand

Pesos, 1988-1994 ............................................................................................. 96
3.5.3

Cement Manufacturing
3.6.1
Clinker PM Emission Factors In Kilograms Per Metric Ton of Clinker,

By Source of Emission and Type of Process.................................................. 103
3.6.2
Clinker Production and PM Emissions, By Process Type, In Metric

Tons, 1988-1994 ............................................................................................. 105
3.6.3

Pesos (At Current Prices), 1988-1994 ............................................................ 106
Petroleum Refining
3.7.1
Emission Factors Used to Estimate The Pollutants Generated By

Petroleum Refineries (Kg/Unit) ....................................................................... 113
3.7.2
Crude Run (In 000 Liters) and Total Process Emissions (In MT) of
Petroleum Industry, By Type of Air Pollutants, 1988-1994 ............................. 114
3.7.3
Environmentally Adjusted Net Value Added (EVA) Petroleum

Industry In Thousand Pesos (At Current Prices) , 1988-1994 ........................ 115
MINING INDUSTRY
Small Scale Gold Mining
4.1.1
Gold Ore Treated, Gold Production and Tailings Generated By

Small-Scale Gold Mining Industry, In Metric Tons, 1988-1994 ...................... 125
4.1.2
Environmentally Adjusted Net Value Added (EVA), In Million Pesos

(At Current Prices), 1988-1994 ....................................................................... 125
ELECTRICITY GENERATION
5.1.1
Fuel Characteristics ........................................................................................ 134
5.1.2
Emission Factors: NOx, PM, SOx .................................................................. 135
5.1.3
Load Correction Factors ................................................................................. 135
5.1.4
Emission Factors For Organic Compounds (In G/Gj Input) ........................... 136
List of Tables
5.1.5
Gross Electricity Generation of Power Plants, In Gigawatts, 19881995 ............................................................................................................... 137
5.1.6
Estimated Fuel Consumption (EFC) of Power Plants, In Million Metric

Tons, 1988-1995 ............................................................................................. 139
5.1.7
Total Emissions From Bunker Oil Fuel-Based Power Plants, In

Thousand Metric Tons, 1988-1995 ................................................................ 139
5.1.8
Total Emissions From Diesel Oil Fuel-Based Power, In Thousand

Metric Tons, 1988-1994 .................................................................................. 140
5.1.9
Total Emissions From Coal-Fired Power Plants, In Thousand Metric

Tons, 1988-1995 ............................................................................................. 141
5.1.10 Share of Gross Generation and Total Emissions By Type of Power

Plant (In Percent), 1998 and 1995 .................................................................. 142
LAND TRANSPORT SERVICES

6.1
Type of Emissions By Source ......................................................................... 168
6.2
Allocation of Motor Vehicles By Sector/Institution .......................................... 172
6.3
Total Motor Vehicle Emissions By Type of Fuel Used, In Metric Tons,

1988 and 1996 ................................................................................................ 173
6.4

vi
List
of Figures
Figures
List of
LIST OF FIGURES
FIGURE
PAGE
AGRICULTURE, FISHERY AND FORESTRY

Upland Palay Farming
2.1.1
Upland Palay Production Process ...................................................................... 5
2.1.2
Palay Farming: EVA, Depreciation and Environmental Cost, In

Million Pesos (At Current Prices), 1988-1994................................................... 15
Intensive Shrimp Aquacultue

2.2.1
Production Process of Intensive Shrimp Aquaculture....................................... 24
2.2.2
Intensive Shrimp Aquaculture: EVA, Depreciation and Environmental

Degradation Cost, In Million Pesos (At Current Prices), 1988-1994 ................ 29
Hog Raising
2.3.1
Hog Raising Production Process ..................................................................... 37
2.3.2
Hog Industry: EVA, Depreciation and Environmental Degradation

Cost (At Current Prices), 1988-1994................................................................. 43
Logging of Dipterocarp and Pine Forest

2.4.1
Logging Industry Process Flow......................................................................... 48
2.4.2
Logged Area, Dipterocarp and Pine Forests, In Thousand Hectares,

1988-1994 ......................................................................................................... 51
2.4.3
Logging Industry: EVA, Depreciation and Environmental

Degradation, In Million Pesos (At Current Prices), 1988-1994......................... 53
3.1.1
Tuna Canning Process Flow............................................................................. 58
3.1.2
Fish Canning Industry: EVA, Depreciation and Environmental Cost,

In Thousand Pesos (At Current Prices), 1988-1994 ........................................ 62
Textile Industry
3.2.1
Textile Industry Process Flow ........................................................................... 66
3.2.2
Textile Cotton Industry: EVA, Depreciation and Environmental Cost

(At Current Prices), 1988-1994 ......................................................................... 70
vii
List
of Figures
Figures
List of
Leather Tanning Industry

3.3.1
Leather Tanning Process Flow ......................................................................... 74
3.3.2
Leather Tanning Industry: EVA, Depreciation and Environmental

Cost, In Thousand Pesos (At Current Prices), 1988-1994 ............................... 79
Paint Manufacturing
3.4.1
Paint Manufacturing Process Flow ................................................................... 86
3.4.2
Paint Manufacturing Industry: EVA, Depreciation and Environmental

Cost, In Thousand Pesos (At Current Prices), 1988-1994 ............................... 89
Sugar Milling
3.5.1
Sugar Milling Process Flow............................................................................... 93
3.5.2
Sugar Milling Industry: EVA, Depreciation and Environmental Cost,

In Thousand Pesos, (At Current Prices), 1988-1994........................................ 97
3.6.1
Dry Process Flow ............................................................................................ 101
3.6.2
PM Emissions By Process Type, In Metric Tons, 1988-1994......................... 105
3.6.3
Cement Manufacturing: EVA, Depreciation, Environmental Cost, In

Thousand Pesos (At Current Prices), 1988-1994........................................... 107
Petroleum Refining
3.7.1
Petroleum Refining Process Flow................................................................... 111
3.7.2
Petroleum Refining Industry: EVA, Depreciation and Environmental

Cost, In Thousand Pesos (At Current Prices), 1988-1994 ............................. 116
MINING INDUSTRY
Small-Scale Gold Mining
4.1.1
Amalgamation Process ................................................................................... 120
4.1.2
Cyanidation Process ...................................................................................... 121
4.1.3
Amalgamation-Cyanidation Combined Process ............................................ 122
4.1.4
Small Scale Gold Mining: EVA, Depreciation and Environmental

Degradation Cost, In Million Pesos (At Current Prices), 1988-1994 .............. 126
viii
List
of Figures
Figures
List of
5.1.1
Gross Electricity Generation of Power Plants, in Gigawatt Hours,

1988-1995 ....................................................................................................... 138
5.1.2
Bunker Oil Fuel-based Power Plants: Emissions, 1988-1995 ....................... 139
5.1.3
Diesel Oil Fuel-based Power Plants: Emissions, 1988-1995 ........................ 140
5.1.4
Coal-fired Power Plants: Emissions, 1988-1995 ........................................... 142
5.1.5
Gross Generation and Emissions by Type of Power Plant, 1988 and

1995 ................................................................................................................ 143

6.1.1
Emission Process and the Corresponding Pollutants..................................... 166
6.1.2
Total Motor Vehicle Emissions, In Metric Tons, 1988-1996 .......................... 174
6.1.3
Percent Share of HC, VOC, CO, and Pb by Source ...................................... 175
6.1.4
Percent Share of PM, SOx, NOx and CO2 by Source ................................... 176
6.1.5
Land Transport Sector: EVA, Depreciation and Environmental

Degradation, in Million Pesos (At Current Prices) 1988-1996 ........................ 177
ix
List of Tables
LIST OF TABLES
TABLES
PAGE

2.1.1
Total Soil Erosion (TSE) due to Upland Palay Farming, By

Region, In Thousand Metric Tons, 1994............................................................. 9
2.1.2
Average N, P, K Equivalent Per Ton of Soil Loss by Erosion,

By Region, In Kilograms, 1988 ......................................................................... 11
2.1.3
Estimates of Environmental Degradation, In Thousand Metric

Tons, 1988-1994 ...................................................................................... 14
2.1.4
Environmentally Adjusted Net Value Added (EVA), In Million

Pesos (At Current Prices), 1988-1994 ........................................................ 15
Intensive Shrimp Aquaculture

2.2.1
Total Effluent Load, In Thousand Metric Tons, 1988-1994............................... 27
2.2.2
Total Environmental Cost Using Biofilters, In Thousand Pesos,

1988-1994 ......................................................................................................... 28
2.2.3

Hog Raising
2.3.1
Estimated Controlled and Uncontrolled BOD5 Discharges, By

Type of Farm, 1988-1994 ................................................................................. 41
2.3.2
Estimated Wastewater Pollution Loads, By Type of Farm, In

Metric Tons, 1988-1994 .................................................................................... 41
2.3.3
Environmental Protection Cost, In Million Pesos, 1988-1994........................... 42
2.3.4

Pesos (At Current Prices), 1988-1994 ............................................................. 42
Logging of Dipterocarp and Pine Forests

2.4.1
Total Logged Area, Log Production and Soil Erosion Due to

Logging, 1988-1994 .......................................................................................... 52
2.4.2

iii
List of Tables
3.1.1
Volume of Tuna Fish Canned, BOD5 Effluents and PM Emissions, In

Metric Tons, 1988-1994 .................................................................................... 60
3.1.2
Total Environmental Cost: Control of BOD5 and PM, In Thousand

Pesos, 1988-1994 ............................................................................................. 61
3.1.3
Environmentally Adjusted Net Value Added (EVA) of Fish Canning

Industry, In Thousand Pesos (At Current Prices), 1988-1994 .......................... 62
Textile Industry
3.2.1
Volume of Production of Cotton Textile Industry, BOD5 and PM, In

Metric Tons, 1988-1994 .................................................................................... 68
3.2.2
Environmental Degradation Cost for BOD5 and PM, in Thousand

Pesos, 1988-1994 ............................................................................................. 69
3.2.3
Environmentally Adjusted Net Value Added (EVA) of Textile Industry,

In Thousand Pesos (At Current Prices), 1988-1994......................................... 69
Leather Tanning
3.3.1
Average Production of Leather, Wastewater Flow Ratio and BOD

Load, By Size of Tanneries, 1994..................................................................... 76
3.3.2
Average Cost of Treating Wastewater, In Pesos, 1994.................................... 77
3.3.3
Estimated BOD In Wastewater Discharges of Beamhouse and

Tanneries, By Size, In Metric Tons, 1988-1994................................................ 77
3.3.4
Total Cost of Treating Wastewater In Leather Tanning Industry, In

Thousand Pesos, 1988-1994............................................................................ 78
3.3.5

Paint Manufacturing
3.4.1
Volume of Production, VOC and PM10 Emissions, In Metric Tons,

and PM Control Cost, In Thousand Pesos, 1988-1994 .................................... 88
3.4.2

iv
List of Tables
Sugar Milling
3.5.1
Raw Sugar Production, BOD5 Effluents and PM Emissions, In Metric

Tons, 1988-1994 ............................................................................................... 96
3.5.2
Environmental Cost: BOD5 and PM Control Cost, In Thousand

Pesos, 1988-1994 ............................................................................................. 96
3.5.3

3.6.1
Clinker PM Emission Factors In Kilograms Per Metric Ton of Clinker,

By Source of Emission and Type of Process.................................................. 103
3.6.2
Clinker Production and PM Emissions, By Process Type, In Metric

Tons, 1988-1994 ............................................................................................. 105
3.6.3

Pesos (At Current Prices), 1988-1994 ............................................................ 106
Petroleum Refining
3.7.1
Emission Factors Used to Estimate The Pollutants Generated By

Petroleum Refineries (Kg/Unit) ....................................................................... 113
3.7.2
Crude Run (In 000 Liters) and Total Process Emissions (In MT) of
Petroleum Industry, By Type of Air Pollutants, 1988-1994 ............................. 114
3.7.3
Environmentally Adjusted Net Value Added (EVA) Petroleum

Industry In Thousand Pesos (At Current Prices) , 1988-1994 ........................ 115
MINING INDUSTRY
4.1.1
Gold Ore Treated, Gold Production and Tailings Generated By

Small-Scale Gold Mining Industry, In Metric Tons, 1988-1994 ...................... 125
4.1.2

5.1.1
Fuel Characteristics ........................................................................................ 134
5.1.2
Emission Factors: NOx, PM, SOx .................................................................. 135
5.1.3
Load Correction Factors ................................................................................. 135
5.1.4
Emission Factors For Organic Compounds (In G/Gj Input) ........................... 136
List of Tables
5.1.5
Gross Electricity Generation of Power Plants, In Gigawatts, 19881995 ............................................................................................................... 137
5.1.6
Estimated Fuel Consumption (EFC) of Power Plants, In Million Metric

Tons, 1988-1995 ............................................................................................. 139
5.1.7
Total Emissions From Bunker Oil Fuel-Based Power Plants, In

Thousand Metric Tons, 1988-1995 ................................................................ 139
5.1.8
Total Emissions From Diesel Oil Fuel-Based Power, In Thousand

Metric Tons, 1988-1994 .................................................................................. 140
5.1.9
Total Emissions From Coal-Fired Power Plants, In Thousand Metric

Tons, 1988-1995 ............................................................................................. 141
5.1.10 Share of Gross Generation and Total Emissions By Type of Power

Plant (In Percent), 1998 and 1995 .................................................................. 142

6.1
Type of Emissions By Source ......................................................................... 168
6.2
Allocation of Motor Vehicles By Sector/Institution .......................................... 172
6.3
Total Motor Vehicle Emissions By Type of Fuel Used, In Metric Tons,

1988 and 1996 ................................................................................................ 173
6.4

vi
List of Appendices
LIST OF APPENDICES
APPENDIX
PAGE

2.1.1
Total Upland Area Subjected to Erosion (TSEA) By Region, In

Hectares, 1988-1994......................................................................................... 17
2.1.2
Distribution of Total Eroded Area and Soil Erosion Rates By

Type of Erosion, By Region, 1990 .................................................................... 18
2.1.3
Estimates of Off-Site Soil Erosion Due to Upland Palay

Farming, In Metric Tons, 1988-1994........................................................... 19
2.1.4
Estimated Nutrient Loss From On-Site Erosion (ONSE) Due to

Upland Palay Farming, In Metric Tons, 1988-1994 ...................................... 20
2.1.5
Estimated Cost of Various Soil and Water Management

Conservation Measures (SWCM), By Type of Erosion, in
Pesos per Hectare, 1988-1994.............................................................. 21

2.2.1
Types of Shrimp Aquaculture Practices............................................................ 30
2.2.2
Cost of Biofilters per Waste Treatment Pond ................................................... 31
2.2.3
Frequency of Water Change and Volume of Water Discharged,

In Cubic Meters per Hectare ............................................................................. 32
2.2.4
Water Pollutants in An Intensive Shrimp Pond ................................................. 33
2.2.5
Area of Intensive Prawn Fishponds and Water Reservoir, In

Hectares, 1988-1994......................................................................................... 34
2.2.6
Estimation of the Required Number of Mussels ............................................... 34
Hog Raising
2.3.1
Water Treatment Process (WTP), Capital, Operations and

Maintenance Cost, In Thousand Pesos, 1992.................................................. 45
2.3.2
Pollution Load Factors, In Kg/Head/Year, 1993 ............................................... 45
List of Appendices

2.4.1
Total Logged Area By Region, In Thousand Hectares, 19881991 .................................................................................................................. 54
2.4.2
Log Production By Region, In Thousand Cubic Meters, 19881991 .................................................................................................................. 54
2.4.3
Erosion Rates in the Philippines By Region, In Metric Tons per

Hectare.............................................................................................................. 55
2.4.4
Estimated Maintenance Cost of Logged Forest, In Peso per

Hectare, 1988-1992 .......................................................................................... 55
3.1.1
Cost of Pollution Control Devices (Pesos/MT), 1988-1994 .............................. 63
3.1.2
Volume of Tuna Fish Used for Canning, In Metric Tons, 19881994 .................................................................................................................. 63
Textile Industry
3.2.1
Cost of Pollution Control Devices, Pesos per Metric Tons, 19881994 .................................................................................................................. 71
3.2.2
Volume of Production in Cotton Textile Industry, In Metric Tons,

and GVA Growth Rate (At Constant Prices), 1988-1994.................................. 71
Leather Tanning
3.3.1
Beamhouse and Tanyard Production, Wastewater Flow and

BOD Load of Sample Tanneries, by Size of Tannery, 1994............................. 80
3.3.2
Cost of Wastewater Treatment (Pesos/Kg), 1988-1994 ................................... 80
3.3.3
Beamhouse Production, Wastewater Flow and BOD Load

(Blown Up Data), by Size of Tannery, 1994 ..................................................... 81
3.3.4
Tanyard Production, Wastewater Flow and BOD Load (Blown Up

Data), By Size of Tannery,1994........................................................................ 81
3.3.5
Estimation of Production Trends, 1988-1994 ................................................... 82
3.3.6
Estimated Hide Production of Leather Tanneries, In Thousand

Kilograms, 1988-1994 ....................................................................................... 82
3.3.7
Estimation of Leather Production and Process Rate, 1994.............................. 83
3.3.8
Extrapolation of Hide Production ...................................................................... 83
xi
List of Appendices
Paint Manufacturing
3.4.1
Value and Volume of Production, 1988-1994 ................................................... 90
3.4.2
Cost of Pollution Control Devices (Pesos/MT), 1988-1994 .............................. 90
Sugar Milling
3.5.1
Average Cost of Pollution Control Devices, 1988-1994.................................... 98
3.6.1
Clinker Production, By Process Type, In Metric Tons, 1988-1994 ................. 108
3.6.2
Cost of Pollution Control Devices, Pesos per Metric Tons, 1988-1994.......... 108
Petroleum Refining
3.7.1
Cost of Pollution Control Device, Pesos/MT, 1988-1994................................ 117
MINING INDUSTRY
4.1.1
Gold Ore Treated and Gold Production by Type, In Metric Tons,

1988-1994 ....................................................................................................... 127
4.1.2
Estimation of Maintenance Cost of Impounding Tailings Based

on 1982 Data................................................................................................... 128
5.1.1
Emission Factors (EF) Used ........................................................................... 145
5.1.2
Sample Computation of Emissions ................................................................ 146
5.1.3
NOx Emissions of Bunker Oil Fuel-Based Power Plants, 19881995 ................................................................................................................ 148
5.1.4
SOx, PM, CO and CO2 Emissions of Bunker Oil Fuel-Based

Power Plants, 1988-1995................................................................................ 149
5.1.5
NOx Emissions of Diesel Fuel-Based Power Plants, 1988-1995 ................... 150
5.1.6
SOx, PM, CO and CO2 Emissions of Diesel Fuel-Based Power

Plants, 1988-1995 ........................................................................................... 151
5.1.7
NOx, SOx, PM, CO and CO2 Emissions of Coal-Fired Power

Plants, 1988-1995 ........................................................................................... 152
5.1.8
VOC of Bunker Oil Fuel-Based and Coal-Fired Power Plants,

1988-1995 ....................................................................................................... 153
xii
List of Appendices
5.1.9
Types of Power Plants .................................................................................... 154
5.1.10 Treatment Process.......................................................................................... 160

6.1.1
Running Exhaust Emissions in Grams per Trip, By Vehicle Type and

by Type of Fuel Used ...................................................................................... 179
6.1.2
Volatile Organic Compounds (VOC) Emissions, by Vehicle Type and

by Type of Fuel Used ...................................................................................... 179
6.1.3
Total Motor Vehicle Emissions, Philippines, In Metric Tons, 19881996 ................................................................................................................ 180
6.1.4
Total Motor Vehicle Emissions, National Capital Region, In Metric

Tons, 1988-1996 ............................................................................................. 180
6.1.5
Number of Registered Motor Vehicles by Type and Type of Fuel

Used, 1988...................................................................................................... 181
6.1.6
Number of Registered Motor Vehicles by Type and Type of Fuel

Used, 1996...................................................................................................... 182
6.1.7
Fuel Consumption in Thousand Liters, by Type of Vehicle, by Type

of Fuel, 1988-1996 .......................................................................................... 183
6.1.8
Land Area, Population and Vehicle Density by Region, 1994 ........................ 184
6.1.9
Total Motor Vehicle Emissions in Metric Tons, By Region, 1994 ................... 184
6.1.10 Total Cost of Degradation, In Thousand Pesos, by Source, 19881996 ................................................................................................................ 185
6.1.11 Total Cost of Degradation, In Thousand Pesos, by Type of Pollution
Control, 1988-1996 ......................................................................................... 185
xiii
Introduction
INTRODUCTION
Mans economic activities, more often than not, put undue stress to the environment,
either as a sink for unwanted by-products and wastes or as a source of raw materials needed
to support the increasing demands of the population.
Throughout the years, the economic significance of these activities is measured
through the System of National Accounts or the SNA. Specifically, the SNA provides a
measure of the economic performance of a given country the amount (in monetary terms) of
goods and services produced by a country, expressed either as Gross National Product
(GNP) or as Gross Domestic Product (GDP). However, such measure of economic
performance is quite limiting when viewed from an environmental and sustainable
development perspective. In this respect, the SNA fails to measure or clearly segregate the
economic cost of resource depletion and the cost of environmental degradation due to
anthropogenic activities.
To address such limitations in the SNA, a satellite environmental account, termed the
United Nations System of integrated Environmental and Economic Accounting (UN SEEA),
was developed. This satellite accounting system would account for the cost of resource
depletion and the cost of environmental degradation due to economic activities not otherwise
accounted for in the SNA. Being a satellite account, the environmental accounts would not in
any way disrupt the various existing accounts of the SNA.
This publication is a compilation of environmental accounts which show the
degradation of the environment due to selected economic activities. The accounts provide
estimates of pollutants to land, air and water generated by selected economic activities:
Agriculture, Fishery and Forestry, Manufacturing Industry, Mining Industry, Electricity
Generation and Transportation Services. Except for electricity generation, which is only
measured in physical terms, all of the economic activities covered were measured in both
physical and monetary terms.
The estimates cover a six-year period, from 1988 to 1994, except for electricity
generation, which covers 1988 to 1995, and land transportation services, which covers the
period 1988 to 1996. Due to data limitations, coverage of the agriculture, fishery and forestry
was further limited to upland palay farming, intensive shrimp aquaculture, hog industry, and
logging in dipterocarp and pine forests. For manufacturing, the following industries were
prioritized: tuna canning industry, textile industry, leather tanning industry, paint industry,
sugar milling industry, cement industry and petroleum industry. The mining industry covered
small-scale gold mining activity while electricity generation focused on bunker-fuel based,
diesel based and coal-fired power plants. Under the transportation industry, only land
transportation services were considered.
A review of the production processes and the corresponding pollutants and waste
generated was done for all industries. In the estimation of pollutants generated in physical
terms, the pollutants or wastes emitted were limited to those that are quantifiable. This
implies that not all known pollutants for the sub-sectors presented were estimated.
In valuing the environmental degradation caused by economic activities, this
compilation adopted three broad types of maintenance cost valuation. The first type are those
that are preventive in nature, e.g., upland farming, wherein the cost of implementing
vegetative and engineering measures to prevent soil erosion and water pollution was used.
The same is true for dipterocarp and pine tree logging wherein an average reforestation cost
per hectare was used. The second type of maintenance valuation are those that treat
wastewater generated by industries such as the hog industry, leather tanning and intensive
shrimp aquaculture. Lastly, those that use the annualized capital cost (AnCC) and annual
maintenance and operating cost (AOMC) of pollution control devices, such as those used by
the manufacturing sector e.g., anaerobic facultative ponds/lagoons, sludge collector, sludge
drying bed, electrostatic precipitator, etc.
Environmental Degradation due to Selected Economic Activities
Introduction
The value of environmental degradation caused by the industries was assumed to be

an additional cost to the economic activity and was deducted from the corresponding
industrys Net Value Added (NVA) to arrive at the environmentally adjusted net value added
(EVA). With these adjustments applied to the NVA for each economic sector, the value
added is said to be more environmentally realistic and thus, more attuned towards the
environmental and sustainable development aspirations of the government. Moreover, the
heightened awareness on the current state of the environment, both locally and throughout
the rest of the world, underscores the need for more useful tools and indicators that would
facilitate the creation of environmentally sound policies and programs. It is in this light that
this compilation is published with the hope of providing for the present and future needs of
policy makers.
Environmental Degradation due to Selected Economic Activities
Upland Palay
Farming
2.1.1
INTRODUCTION
2.1.1.1
Industry Description
The Philippines has about 9.97 million hectares of agricultural land. An estimated
4.01 million hectares of these lands or about 40 percent are planted to palay. Of the total
palay areas, almost half are situated in lowland areas while the other half are in upland areas
(NSO, 1991). Lowland palay areas are mostly flat and plain and irrigated while upland palay
areas are on rolling and hilly terrain and are usually rainfed or non-irrigated. The latter is the
subject of this study.
Palay industry continues to play an important role in the Philippine economy. It
serves as the main source of the country's staple food, rice. It also employs a significant
proportion of the country's rural population, either as farm operator or as wage earners. In
terms of its contribution to the GVA in 1995, the palay industry accounted for more than 16
percent of the total output of the agriculture sector and almost 4 percent of the country's GDP
(NSCB, 1996).
Due to the importance of the industry, the government's efforts of continued
expansion of palay farms and intensive cultivation by increased cropping intensity and
intercropping practices have been pursued vigorously. The use of modern inputs in
production, adoption of high yielding varieties and the availability of irrigation water, were
some of the measures adopted to increase palay production.
In the past, growth of palay industry was primarily the result of continued expansion
of land planted to palay. Other factors like changes in cropping intensity, technology and
productivity have only minimally contributed to the increase in palay production during the
period. In the early eighties, however, a shift to increasing land productivity at a very high
margin has started (PCSD, 1990). For the period 1988 to 1994, palay production grew at an
average of 2.6 percent annually from 5.4 million MT in 1988 to 6.4 million MT in 1994. Palay
productivity likewise improved marginally from 2.26 MT in 1988 to 2.37 MT in 1994.
The growing demand for higher production because of growing population has
threatened the sustainability of the countrys natural resources and the viability of the state of
the environment. Intensive farm cultivation practices and excessive application of chemical
fertilizers and pesticides are some of the factors found to contribute to the degradation of the
environmental media (Francisco, 1996). Moreover, other production processes although at a
minimal rate, also affect the environment.
2.1.1.2
Scope and Limitations of the Study
The study measures the degradation caused by upland palay farming to

environmental media such as land, water and air. It also illustrates how environmental
degradation of upland palay farming was accounted for and valued using the maintenance
cost method - a method that represents the expenditures to be incurred to avoid
environmental degradation or to eliminate the effects of such degradation after the activity has
taken place.
The study focuses only on palay farming activities located in upland areas,
considering that environmental degradation is more pronounced in upland areas than in
lowland areas. Areas devoted to upland palay farming are approximately 20 percent of total
areas devoted to palay farming. Environmental degradation accounted for in the study was
limited to land and water degradation.
For degradation to land, only the resulting nutrient loss from soil erosion is
accounted for, covering only three macro nutrients - nitrogen (N), phosphorus (P) and
potassium (K). Nutrient loss as a result of plant uptake and leaching was not considered. For
degradation to water, only five-day biochemical oxygen demand (BOD5) and suspended
solids (SS) are included.
To account for the differences in upland palay farming practices in the country,
estimation of the physical accounts was done by region.
2.1.1.3
Production Process and Pollutants Generated
The cultivation of palay involves several production processes namely: seed

treatment, cultivation and land preparation, transplanting, insect and pest control, weed
control, fertilization, rouging and harvesting. These production processes are shown in Figure
2.1.1.
The corresponding inputs and waste materials that are generated and the
environmental degradation that resulted from the process are indicated.
2.1.1.4
Effects to Environmental Media

2.1.1.4.1
Land
Although intensive cultivation and increased cropping intensity in palay farms

increased palay production, it also resulted in the degradation of land due to soil erosion or
the loss of nutrients from the soil. Soil erosion tends to lower the quality of soil which may
cause irreparable loss of nutrients in the soil thereby affecting the growth and yield of crops.
Nutrients identified to be essential for plant growth are nitrogen (N), phosphorous (P),
potassium (K), iron (Fe), molybdenum (Mo), manganese (Mn), copper (Cu), calcium (Ca),
magnesium (Mg), sulfur (S), zinc (Zn), boron (Bo) and chlorine (Cl). Among the identified
nutrients, N, P and K are the most important nutrients necessary for plants to sustain their
growth (Espino, 1995). This damaging effect to land is the main concern of this study.
Other damaging effects of soil erosion are sedimentation of water bodies, ozone
layer depletion, soil salinization, etc.
2.1.1.4.2
Water
Several discharges to water from palay farming include agrochemical residues,

nitrates and ammonium which stemmed from excessive applications of inorganic chemicals
and fertilizers that are carried by runoff erosion to water bodies like lakes and rivers. High
concentration of nitrates and ammonium often lead to the contamination of ground water. It
also carries, through runoff erosion, soil nutrients, soil sediments, biochemical oxygen
demand (BOD5) and suspended solids (SS). BOD5 and SS were identified as major
pollutants to water that can lead to eutrophication which is characterized by ecological
imbalance in water and soil due to excessive supply of plant nutrients in the form of
phosphates and nitrogen compounds (Geron, 1994). Eutrophication creates damage to living
organisms in water bodies as it leads to algal blooms which cause massive fish kills and may
eventually result to the disruption of aquatic life due to oxygen depletion in the water. The
physical account presented in this study covers BOD5 and SS as pollutants to water.
INPUT
PROCESS STAGE
SEED
TREATMENT
Water
Water (flooding),
fertilizers
Seedlings
CULTIVATION & LAND

PREPARATION
TRANSPLANTING
WASTE
Soil erosion, loss of

nutrients,soluble N
leaching into the
ground water, toxic
compounds released
into the soil (e.g.
Ammonia, salts),
compaction of soil
(destruction of soil
structure)
Insecticides,
fungicides,
pesticides
INSECT & PEST

CONTROL
Chemical residues
Herbicides,
weedicides
WEED
CONTROL
Chemical residues
Nitrogen fertilizers
FERTILIZATION
Soluble N leaching into

the ground water, salts
ROUGHING
HARVESTING
Plant residues
Source:
Selected Technical Information on Agricultural
Crops, Fishery and Forestry, NEDA
FIGURE 2.1.1
UPLAND PALAY PRODUCTION PROCESS
2.1.1.4.3
Air
Palay farms when submerged in water during its growing stage emit air
concentrations of methane gas, aside from the release of carbon monoxide and carbon
dioxide (Francisco, 1994). Methane gas emissions trap part of the thermal radiation from the
earth's surface that contribute to global warming. Other discharges to air include chemical
and fertilizer residues from the excessive application of pesticides and chemical fertilizers as
well as soil particulates from continuous soil erosion.
Solid wastes generated from palay production such as rice straws, rice husk, and
other plant residues are normally discharged in palay fields wherein its beneficial effects,
aside from reducing the effects of erosion, include the supply of organic matter to form part of
the available nutrients in the soil. These wastes when burned pollute the air with emissions of
particulate matter, volatile organic compounds, carbon monoxide and carbon dioxide. Palay
residues also create odor when these rot in the field.
Due to unavailability of data, damaging effects of upland palay farming to air was
not estimated in this study.
2.1.1.5
Measures to Prevent Degradation to Environmental Media
The most apparent degradation from palay farming causing serious damage to the
environment relates to the degradation of land due to soil erosion that usually occurs in
upland palay farming.
The University of the Philippines at Los Baos, Laguna (UPLB)
Agroforestry Program in 1994 showed that the effects of soil erosion can be prevented or
reduced when appropriate measures are adopted. These include the use of vegetative
measures like cover cropping, contour/buffer strip cropping, multiple/relay cropping/crop
rotation, mulching, hedgerows, fascines and wattlings as well as the use of engineering
measures, both mechanical and structural, like conservation tillage, terracing, diversion
ditches/drainage canals, rockwalls, checkdams/drop weirs, farmponds/water impounding dam
and riprap.
2.1.1.6
Assumptions
In coming up with the physical and monetary estimates, several assumptions were
employed. These are:
1.
All areas devoted to upland palay farming, at varying degrees (slight, moderate, and
severe), are subject to soil erosion.
2.
The same parameters such as erosion rates obtained from the 1990 study were used
for 1988-1994.
3.
Some of the ratios used in the study were based on the study that was conducted in
four areas of Mindanao. No adjustments were made to account for regional
differences in the ratios.
4.
The equivalent nutrient loss due to on-site erosion is the proxy estimate of the
degradation to land of upland palay farming while the estimated degradation to water
was based on the nitrogen loading of off-site soil erosion.
5.
In the monetary estimation of degradation, it was assumed that all upland palay farm
areas are already degraded.
6.
The valuation of degradation was limited to maintenance cost referring to the

avoidance of soil erosion.
2.1.2
SOURCES AND METHODS
2.1.2.1
Data Sources
The main sources of data for the study were culled from agricultural surveys,
administrative reports and special studies from different research institutions.
The National Statistics Office (NSO) from the 1980 and 1991 Census of Agriculture
(CA) generated data on total physical area devoted to palay farming. Data on area by type of
farm (irrigated and rainfed) came from the Bureau of Agricultural Statistics (BAS).
The Bureau of Soils and Water Management (BSWM), through its Agricultural Land
Management and Ecological Division (ALMED), provided data on average soil loss, total
eroded areas and erosion factors by region and by type of erosion such as slight, moderate
and severe erosion. Provincial data on land use disaggregated by type of crop and by pedoecological zones (lowland, upland, hillyland, highlands, etc.) were obtained from the BSWM.
A special study on Agricultural Production and the Environment for Mindanao
Regions in the Philippines, conducted by the ENRA Component of the Statistical
Development Analysis Project under the Philippine Statistical Association (PSA), was the
source of some parameters and indicators used to estimate BOD and SS for water pollution
and estimates of soil sediment discharge to catchment areas. The same study also provided
indicators on the estimated pollution control cost per hectare of degraded palay farms.
A study on Valuation of Direct Environmental Waste Disposal Services conducted
by ENRAP III provided the regional estimates of nutrient equivalent (NPK) for every ton of soil
loss, a parameter used for the estimates of total nutrient loss due to palay farming.
A report on Selected Technical Information on Agricultural Crops, Fishery and
Forestry, published by the National Economic Development Authority (NEDA) in 1975, was
the source of information on different production processes in palay farming. Information on
appropriate measures on soil and water conservation was obtained from UPLB Agroforestry
Program.
Other indicators like agricultural wage rates (national) in farm households,
particularly for palay workers, and the corresponding wage rate index were obtained from the
BAS.
2.1.2.2
Estimation Methodology
2.1.2.2.1
Physical Estimation
Soil Erosion
The estimates on environmental degradation to land were expressed in terms of the

equivalent nutrient loss from the estimates of soil loss due to palay farming. Soil loss
estimation is based on soil erosion which is categorized either as slight (SE1), moderate
(SE2) and severe (SE3). These varied erosion levels are calculated for each region in the
country after identifying the total area subject to erosion (TSEA), which in this study, is limited
to areas devoted to upland palay farming (Appendix Table 2.1.1). Benchmark data on land
area devoted to palay farming are from the 1980 and 1991 CA. For other years, estimates
were arrived at using the trends of average growth rates computed for 1980 and 1991 using
the geometric formula. To estimate total soil erosion (TSE), the following equations were
used:
Total Area Subjected to Erosion (TSEA) = AHA x UPR
Eq. 1
where:
AHA = adjusted area harvested planted to palay (Reported area is adjusted by 5
percent for under coverage)
UPR = ratio of upland palay farming to total area for palay farming
Total Soil Erosion (TSE) = SE1 + SE2 + SE3
Eq. 2
where:
SE1 = slight erosion
SE2 = moderate erosion
SE3 = severe erosion.
TSEA for each region was subdivided into three areas depending on level of
erosion rate. Each SE was calculated as:
Soil Erosion for each type (SEJ) = TSEA x SEJr x SERJ
Eq. 3
where:
SEJ r
SERJ
j
=
=
=
ratio of total area subject to (j) type of erosion

soil erosion rate for (j) type of erosion
1,2,3
In computing for the total soil erosion, equations 2 and 3 are combined to form the
equation:
TSE = (TSEA x SEJr x SERJ)
Eq. 4
For example, total erosion for the Cordillera Administrative Region (CAR) is
calculated as:
TSECAR94 = [(49,562 x .3097 x 6.5) + (49,562 x 0.4425 x 17.7) + (49,562 x 0.2478 x
59.4)]
= 99,771 + 388,182 + 729,519
= 1,217,472 MT
Table 2.1.1 gives a summary of the TSE due to upland palay farming for each
region in 1994. The variables for SEJR and SERJ, are shown in Appendix 2.1.2.
TABLE 2.1.1
TOTAL SOIL EROSION (TSE) DUE TO UPLAND PALAY FARMING BY

REGION, IN THOUSAND METRIC TONS, 1994
Total
Palay
Area
(AHA)
in ha.
Region
CAR
Upland
Palay
Area
(TSEA)
in ha.
Upland
Ratio
(UPR)
Soil Erosion (SE)

Total
Soil
Erosion
(TSE)
Slight
Erosion
(SE1)
Moderate
Erosion
(SE2)
Severe
Erosion
(SE3)
71,642
0.6918
49,562
1,217.4
99.8
388.2
729.5
Ilocos Region
333,796
0.0462
15,421
607.5
130.2
190.9
266.4
II
Cagayan Valley
398,518
0.0443
17,654
675.6
90.8
380.9
203.8
III
Central Luzon
560,144
0.0186
10,419
191.9
31.3
68.8
91.9
IV
Southern Tagalog
442,408
0.3153
139,491
3,057.4
176.4
1,609.8
1,271.2
Bicol Region
311,683
0.1356
42,264
1,426.2
553.8
603.0
269.5
VI
Western Visayas
532,566
0.3643
194,050
5,779.3
375.9
1,704.1
3,699.3
VII Central Visayas
113,947
0.7572
86,281
881.0
27.0
265.6
588.4
VIII Eastern Visayas
207,722
0.1724
35,811
936.0
93.3
217.3
625.4
IX
Western Mindanao
121,674
0.3279
39,897
500.4
39.3
152.0
309.2
Northern Mindanao
180,895
0.0455
8,231
190.7
14.7
53.3
122.7
XI
Southern Mindanao
193,075
0.0608
11,739
355.9
60.3
48.0
247.4
208,520
0.0459
9,571
259.8
37.9
73.5
148.4
157,427
0.1869
29,423
597.0
77.2
172.9
346.9
689,815
16,675.9
1,807.8
5,928.2
8,940.0
XII Central Mindanao

ARMM
PHILIPPINES
3,834,117
To divide total soil erosion (TSE), by those that are delivered into the water bodies
(off-site erosion - OFSE) and those that are transferred into other land areas (on-site erosion ONSE), a soil delivery ratio (SDR) was used. In this study, SDR was assumed to be 20
percent. Hence:
TSE = OFSE + ONSE
where:
Off-site soil erosion (OFSE)
TSE x SDR or,
Off-site soil erosion (OFSE)
0.2 TSE
Eq. 4
On-site soil erosion (ONSE)
(1 - 0.2) TSE
Eq. 5
The 20 percent SDR was used to estimate the amount of sediment delivered into
the catchment areas. This parameter was obtained from the ENRAP III Study on Upland Soil
Resources of the Philippines (Francisco, 1993). The same ratio was applied for the years
1988 to 1994. Consequently, the estimated volume of soil erosion transferred to other lands is
80 percent of the total soil erosion (Appendix Table 2.1.3).
Nutrient Equivalent
The NPK equivalent representing the nutrient loss due to soil erosion was
computed by multiplying the estimated soil erosion by the nutrient content of eroded soil.
Nutrient content was measured in terms of kilograms per ton of soil loss (Appendix Table
2.1.4).
Nutrient Loss (NL) = TSE x N-C
Eq. 7
where:
N-C = Nutrient content per unit of erosion
For example, to estimate the nutrient equivalent of Nitrogen loss:
NLN = TSE x NNC
where:
NLN = Nitrogen equivalent of the nutrient loss in kg
NNC = Nitrogen content per unit of erosion
The same formula was used for the estimation of P (Phosphorus) and K
(Potassium) nutrient equivalent of soil erosion. The ENRAP Study on Valuation of Direct
Environmental Waste Disposal Services provided a parameter on equivalent nutrient loss in
terms of NPK by region (Table 2.1.2). This parameter was derived by taking into account
several variables namely: average fertilizer applied per hectare, cropping intensity, area
planted and percentage of farmers applying fertilizers.
Degradation to land
The estimated NPK equivalent (Appendix 2.1.4) representing the nutrient loss on
on-site erosion served as an indicator for the estimation of environmental degradation to land
in physical terms. This was achieved by replacing TSE with ONSE in Eq. 7. Hence the
formula is:
Nutrient Loss to Land (NLONSE)
= ONSE * N-C
Eq. 8
Degradation to water
The estimates of environmental degradation to water in physical terms were

expressed in terms of BOD and SS. The available parameters for estimating BOD and SS
were based on nitrogen loading. Nitrogen loading was assumed to be the Nitrogen (N)
nutrient loss due to OFSE. The nitrogen loading from off-site soil erosion was then multiplied
by the corresponding effluent factors as shown in the following equations:
NLOFSE = OFSE x NNC
Eq. 9
where:
NLOFSE = Nitrogen loss equivalent of off-site soil erosion
BOD = NLOFSE x EFBOD or,
10
BOD = NLOFSE x 1.3 kg/kg of nutrient loss
Eq. 10
where:
EFBOD = Effluent factor for BOD5 which was assumed to be 1.3 kg per kg of
nutrient loss equivalent
SS = NLOFSE x EFSS or,

Eq. 11
SS = NLss x 257.99 kg/kg of nutrient loss

where:
EFSS
TABLE 2.1.2
= Effluent factor for SS which was assumed to be 257.99 kg per kg of

nutrient loss equivalent
AVERAGE N, P, K EQUIVALENT PER TON OF SOIL LOSS BY REGION,

IN KILOGRAMS, 1988
NUTRIENT
Region
N
CAR
2.20
0.07
0.04
Ilocos Region
1.68
0.04
0.12
II
Cagayan Valley
2.00
0.04
0.17
III
Central Luzon
2.41
0.05
0.18
IV
Southern Tagalog
2.21
0.06
0.68
Bicol Region
3.38
0.04
0.22
VI
Western Visayas
3.25
0.11
0.80
VII Central Visayas
3.79
0.05
1.11
3.79
0.05
1.11
IX
Western Mindanao
2.29
0.07
0.16
Northern Mindanao
2.64
0.03
0.18
XI
Southern Mindanao
1.81
0.04
0.48
4.80
0.04
0.25
3.31
0.04
0.37

ARMM
Source: Valuation of Direct Environmental Waste Disposal Services, ENRAP

III, December 1995
11
2.1.2.2.2
Monetary Estimation
The monetary estimates of environmental degradation were valued based on the

maintenance cost method. While the estimates of environmental degradation in physical
terms were estimated by region, the estimates in monetary terms can only be done for the
national level since current available data are very limited.
In the valuation of environmental degradation, only those that are beyond the
absorptive capacity of the environment were taken into account. In this study, the assumption
that environmental degradation had already taken place was based on the results of the PSA
Study on Agricultural Production and the Environment for Mindanao Regions conducted in
1990. The study showed that palay farms in four regions in Mindanao are already degraded.
An estimate of costs was also computed for degraded upland palay farms in Mindanao which
adopted both vegetative and engineering measures at varying capacity rates of reducing soil
erosion and water pollution.
The study arrived at an estimate of annual maintenance costs (MC90) which was
used as benchmark estimates of costs. Maintenance costs (MC90) included the expenditures
for preventing the effects of soil and water pollution using various technologies. Separate
cost estimates was made for each level of erosion.
1)
(MC1) P115/ha - include cost of an agronomic cover for slightly eroded farm
2)
(MC2) P745/ha - include cost of a sloping agriculture land technology (SALT) for a
moderately eroded farm.
3)
(MC3) P1,100/ha - include cost of maintaining the vegetative and engineering

measures (SWCM) for severely eroded farms.
The total cost of controlling soil erosion (TMCSE) was derived by multiplying the
total eroded area with the estimated cost per hectare for each type of soil erosion, i.e., slight,
moderate and severe erosion. This is illustrated in the following equations:
TMCSE
MCSE1 + MCSE2 + MCSE3
Eq. 12
MCSE was calculated as:

MCSEJ
SEJ x MCJ
Eq. 13
where:
MCJ =
J
=
maintenance cost for each (j) type of erosion

1,2,3
Estimates of annual costs for the succeeding years were obtained by extrapolating
the 1990 annualized cost using the computed index of legislated wage rates for palay farmers
obtained from the BAS (Appendix Table 2.1.4). Wage rates were used as an indicator since
cost of labor accounted for a significant proportion of the total costs.
12
2.1.2.2.3
Environmentally Adjusted Net Value Added (EVA)
The estimates of the EVA were derived by subtracting from the net value added
(NVA) the cost of environmental degradation taking into account the degradation caused by
palay farming to land, water and air. In this study, only the cost of degradation to land and
water were considered in terms of its equivalent nutrient loss from soil erosion as well as in
terms of BOD5 and SS discharges.
NVA represents the GVA less the cost of depreciation of fixed assets. The sector's
GVA represents the factor payments to production, namely: compensation, indirect taxes less
subsidies, depreciation and net operating surplus. The GVA is estimated by deducting from
the gross output, the value of the total intermediate inputs used during the process of
production.
This methodology of estimating the EVA applies to all economic activities covered
in this publication.
2.1.3
RESULTS
2.1.3.1
Physical Estimates
2.1.3.1.1
Degradation to land
In physical terms, degradation to land as estimated in this study was evaluated by

the amount of nutrient loss due to soil erosion of three (3) major nutrients: nitrogen (N),
phosphorous (P) and potassium (K). During the period, the equivalent nitrogen content of
eroded soil ranged from 33,000 MT in 1990 to 39,000 MT in 1994. The results are reflective
of the trends in the estimated areas devoted to upland palay farming. In 1994, nitrogen, which
made up a significant proportion of the total nutrient in the soil, accounted for 87 percent of
the total nutrient loss in the soil. The remaining nutrient losses are accounted for by
phosphorous and potassium at 11 percent and 2 percent, respectively.
Nutrient losses,
when expressed in thousand MT, correspond to 197 MT of nitrogen, 26 MT of potassium and
4 MT of phosphates (Table 2.1.3).
2.1.3.1.2
Degradation to water
Water pollutants covered in the study were BOD and SS which were the results of
off-site soil erosion. In 1994, SS, which contributed the bulk of discharges in water,
generated a total of 2.49 million MT while BOD discharges reached 13,000 MT during the
year.
The results of the study should be interpreted in relation to other economic activities
as well as natural processes that cause soil erosion. These include logging operations, road
building, and more importantly, natural processes such as erosion accelerated by wind and
rain. The relative magnitude of soil erosion from these sources would provide a better
assessment of the environmental consequences of palay farming.
Nonetheless, the
succeeding section on monetary valuation of soil erosion will provide an indication of the
absolute importance or non-importance of the environmental consequences of palay farming.
13
TABLE 2.1.3
ESTIMATES OF ENVIRONMENTAL DEGRADATION, IN THOUSAND

METRIC TONS, 1988-1994
POLLUTANT
1988
1989
1990
1991
1992
1993
1994
To Water
BOD
12
12
11
12
11
12
13
2,330
2,362
2,138
2,337
2,217
2,283
2,491
36
37
33
36
34
35
39
0.9
0.9
0.8
0.9
0.9
0.9
1.0
SS
To Land
2.1.3.2
Monetary Estimates
The preliminary estimates of the value of environmental degradation from upland

palay farming cover only an approximation of the total costs incurred to prevent the
degradation to land and to water. At current prices, the estimated value of the degradation as
measured in terms of the control cost of soil and water pollution due to soil erosion, reached a
high of P1,466 million in 1994 from P128 million in 1988, growing at an annual average rate of
16.9 percent. From the period 1988 to 1990, the estimated value of environmental
degradation grew by more than 70 percent during the period. From 1991 to 1992, however, a
decelerating trend was noted but started to peak up from 1992 continuing until 1994.
Average annual costs of degradation from upland palay farming are P 45 million,
P310 million and P 231 million, for slightly, moderately and severely eroded palay areas,
respectively. This ranking was determined by the distribution of palay farms subject to
erosion as well as the cost of soil and water conservation measures to control erosion
(Appendix Table 2.1.5). For instance, in 1994, moderately eroded palay farms covered 44
percent of total area; slightly eroded areas, 33 percent; and severely eroded areas, 23
percent. The unit maintenance cost, however, was highest for areas subject to severe
erosion.
2.1.3.3
The value of environmental degradation, when deducted from the estimated net
value added, yields the EVA. From 1988 to 1994, the EVA of palay industry at current prices
increased from P 23.2 billion in 1988 to P 48.1 billion in 1994, registering an annual growth of
2.4 percent (Table 2.1 4). On the average, the total cost of degradation accounted for 2
percent of the estimated net value added for the seven-year period. Ideally however, the
maintenance cost should be compared to the NVA of upland palay farming.
Results of the study showed that significant areas of palay farms were found to be
continuously degraded primarily due to soil erosion resulting from improper and intensive
cultivation practices. Although this practice is geared towards increased palay production, its
corresponding effects to the environment should be given due attention owing to the adverse
effects of soil erosion. In this study, as total costs of environmental degradation increased
during the reference period, proper attention should be directed to this potential problem.
Recent programs of the government have focused on the environmental impacts of palay
farming. The Grains Enhancement Program (GEP) of the government includes, among
others, an awareness campaign at sustaining the environment.
14
TABLE 2.1.4
YEAR
ENVIRONMENTALLY ADJUSTED NET VALUE ADDED

MILLION PESOS (AT CURRENT PRICES), 1988-1994
GVA
Depreciation
NVA
[1]
[2]
[3] = [1] -[2]
Environmental
Cost
[4]
(EVA),
IN
EVA
[5] = [3] [4]
1988
25,147
1,801
23,346
128
23,218
1989
31,565
2,087
29,478
228
29,250
1990
36,416
2,468
33,948
378
33,570
1991
36,373
2,415
33,968
468
33,490
1992
35,761
2,422
33,339
565
32,774
1993
42,167
1,199
40,968
848
40,120
1994
51,079
1,452
49,627
1,466
48,161
50,000
45,000
Environmental
Degradation Cost
40,000
35,000
Depreciation
30,000
25,000
20,000
EVA
15,000
10,000
5,000
0
1988
FIGURE 2.1.2
1989
1990
1991
1992
1993
1994
PALAY FARMING: EVA, DEPRECIATION AND ENVIRONMENTAL

COST, IN MILLION PESOS (AT CURRENT PRICES), 1988-1994
15
2.1.4
RECOMMENDATIONS
The following are some of the recommendations to further improve the preliminary
physical and monetary estimates of environmental degradation caused by upland palay
farming:
1.
Expenditures of upland palay farmers on measures to control the damaging effects of

palay farming activities to the environment should be included in the regular cost of
production surveys of the BAS. These expenditure items should include cost for
labor, materials, equipment, etc.
2.
Data on the status of erosion including parameters on soil erosion rates should be
updated by the BSWM. Further disaggregation by region and by type of crop should
likewise be provided.
3.
More comprehensive studies should be conducted on the effects of palay production

to the environment particularly degradation of air, water and land. These studies may
include, in particular, the effects of intensive cultivation practices and excessive
application of chemicals like fertilizers, insecticides, weedicides, etc. which damage
the environment. Different discharges to the environment like biochemical oxygen
demand, suspended solids and nitrates should also be covered to provide updated
parameters on effluents and effluent factors for air, water and land degradation.
16
APPENDIX TABLE 2.1.1

TOTAL UPLAND AREA SUBJECTED TO EROSION (TSEA) BY REGION, IN HECTARES,
1988-1994
Region / Year
PHILIPPINES
1988
1989
1990
1991
1992
1993
1994
648,217 674,911 615,121 661,312 614,973 637,910 689,815
CAR
53,608
46,925
46,903
43,097
43,576
43,279
49,562
Ilocos Region
15,148
14,482
15,006
15,147
14,803
15,054
15,421
II
Cagayan Valley
15,865
16,694
16,171
15,131
15,174
13,717
17,654
III
Central Luzon
9,082
10,105
10,182
9,762
9,210
9,316
10,419
IV
Southern Tagalog
Bicol Region
VI
Western Visayas
VII
Central Visayas
130,063 133,214 126,262 136,359 136,161 132,502 139,491

47,179
44,603
39,250
42,078
40,568
38,121
42,264
171,004 167,301 142,827 174,488 170,346 179,365 194,050

76,978 111,190
90,216
98,890
76,096
86,781
86,281
37,249
37,390
36,224
40,134
38,921
35,460
35,811
IX
Western Mindanao
45,939
45,506
44,493
45,437
36,006
39,177
39,897
Northern Mindanao
5,819
7,185
6,979
8,127
6,383
7,257
8,231
XI
Southern Mindanao
12,986
13,387
13,200
13,127
10,136
11,596
11,739
XII
Central Mindanao
8,233
8,238
7,212
7,111
6,150
7,498
9,571
19,065
18,691
20,194
12,422
11,443
18,787
29,423
ARMM
Note: Area of palay subject to soil erosion (TSEA) = total harvested area (AHA) x ratio of upland palay
areas to total areas planted to palay (UPR)
Source: BAS
BSWM
17

DISTRIBUTION OF TOTAL ERODED AREA AND SOIL EROSION RATES BY TYPE OF
EROSION, BY REGION, 1990
Percent Distribution to Total
(SEjr)
Region
Erosion Rates in MT/Hectare

(SERj)
Slight
Erosion
Moderate
Erosion
Severe
Erosion
Slight
Erosion
Moderate
Erosion
Severe
Erosion
SE1
SE2
SE3
SER1
SER2
SER3
CAR
30.97
44.25
24.78
6.50
17.70
59.40
Ilocos Region
31.51
34.09
34.40
26.80
36.30
54.00
II
Cagayan Valley
19.19
59.44
21.37
26.80
36.30
54.03
III
Central Luzon
46.19
37.30
16.51
6.50
17.70
53.40
IV
Southern Tagalog
19.46
65.20
15.34
6.50
17.70
59.40
Bicol Region
48.89
39.30
11.81
26.80
36.30
54.00
VI
Western Visayas
37.83
34.79
27.37
5.12
25.24
69.64
VII Central Visayas
29.82
44.17
26.02
1.05
6.97
26.21
50.88
24.04
25.08
5.12
25.24
69.64
IX
Western Mindanao
38.82
47.02
14.16
2.54
8.10
54.72
Northern Mindanao
38.77
36.99
24.25
4.60
17.50
61.50
XI
Southern Mindanao
41.44
21.85
36.71
12.40
18.70
57.40
31.91
41.07
27.02
12.40
18.70
57.40
ARMM
35.13
43.84
21.03
7.47
13.40
56.06
PHILIPPINES
36.01
39.89
24.09
Source: BSWM
18

1
ESTIMATES OF OFF-SITE SOIL EROSION DUE TO UPLAND PALAY FARMING, IN

Region / Year
1988
1989
1990
1991
1992
1993
1994
CAR
263,365
230,534
230,427
211,727
214,082
212,619
243,488
Ilocos Region
119,353
114,102
117,144
119,346
116,632
118,608
121,505
II
Cagayan Valley
121,416
127,760
123,759
115,799
116,126
104,980
135,111
III
Central Luzon
33,462
37,228
37,515
35,968
33,933
34,323
38,386
IV
Southern Tagalog
570,152
583,968
553,491
597,755
596,884
580,848
611,484
Bicol Region
318,417
301,034
264,903
283,987
273,801
257,282
285,246
VI
Western Visayas
1,018,580
996,524
850,749 1,039,336 1,014,661 1,068,386 1,155,856
VII Central Visayas
157,201
227,067
184,235
201,949
155,399
177,221
176,198
194,709
195,447
189,353
209,792
203,453
185,360
187,196
IX
Western Mindanao
115,250
114,162
111,622
113,989
90,331
98,286
100,091
Northern Mindanao
26,962
33,294
32,337
37,657
29,577
33,623
38,137
XI
Southern Mindanao
78,688
81,121
79,988
79,547
61,419
70,266
71,133
44,700
44,728
39,155
38,608
33,388
40,707
51,963
77,364
75,843
81,943
50,408
46,434
76,233
119,395

ARMM
PHILIPPINES
1
3,139,620 3,162,811 2,896,620 3,135,867 2,986,120 3,058,743 3,335,188
Total Soil Erosion x Sediment Delivery Ratio (SDR) at 20 percent
19

ESTIMATED NUTRIENT LOSS FROM ON-SITE EROSION (ONSE) DUE TO UPLAND
PALAY FARMING, IN METRIC TONS, 1988-1994
1988
Region / Year
N
CAR
1989
1990
K
1991
K
2,318
74
42 2,029
65
37
2,028
65
37
1,863
59
34
Ilocos Region
802
19
57
767
18
55
787
19
56
802
19
57
II
Cagayan Valley
971
19
83 1,022
20
87
990
20
84
926
19
79
III
Central Luzon
323
24
27
362
27
347
26
IV
Southern Tagalog
5,040
137
1,551
Bicol Region
VI
Western Visayas
4,305
51
13,242
448
359
280
5,162 140 1,588
4,893 133 1,505
5,284 143 1,626
4,070
3,581
3,840
48
265
42
233
45
250
3,259 12,955 438 3,189 11,060 374 2,722 13,511 457 3,326
VII Central Visayas
2,383
31
698
3,442
45 1,008
2,793
37
818
3,062
40
897
2,952
39
865
2,963
39
868
2,871
38
841
3,180
42
931
IX
Western Mindanao
1,056
32
74 1,046
32
73
1,022
31
71
1,044
32
73
Northern Mindanao
285
19
352
24
341
23
398
27
XI
Southern Mindanao
570
13
151
587
13
156
579
13
154
576
13
153
858
45
859
45
752
39
741
39
113
1,003
12
111
1,083
13
120
666
74

ARMM
PHILIPPINES
1,023
12
36,126
893
1992
Region / Year
N
CAR
7,261 36,615 890 7,532 33,142 802 6,731 36,241 896 7,591
1993
1994
1,884
784
60
19
34
56
1,871
797
60
19
34
57
2,143
817
68
19
39
58
929
19
79
840
17
71
1,081
22
92
Ilocos Region
II
Cagayan Valley
III
Central Luzon
IV
Southern Tagalog
Bicol Region
3,702
44
VI
Western Visayas
13,191
446
VII
Central Visayas
2,356
31
690
2,687
35
787
3,084
41
903
2,810
37
823
327
24
331
25
370
28
5,276
143
1,624
5,135
139
1,580
5,406
147
1,663
241
3,478
41
226
3,857
46
251
3,247 13,889
470
3,419 15,026
509
3,699
2,671
35
782
2,838
37
831
IX
Western Mindanao
827
25
58
900
28
63
917
28
64
X
XI
Northern Mindanao
Southern Mindanao
312
445
4
10
21
118
355
509
4
11
24
135
403
515
5
11
27
137
XII
Central Mindanao
641
33
782
41
998
52
ARMM
614
68
1,008
12
111
1,578
19
174
34,372
861
7,197 35,391
887
7,396 38,618
962
7,898
PHILIPPINES
20

ESTIMATED COST OF VARIOUS SOIL AND WATER MANAGEMENT CONSERVATION
MEASURES (SWCM), BY TYPE OF EROSION, IN PESOS PER HECTARE, 1988-1994
SWCM
1988
1989
1990
1991
1992
1993
1994
Total Soil Erosion (TSEA)
648,216
674,909
614,980
661,310
614,971
637,908
689,812
SEA1
218,376
225,351
204,976
221,412
205,221
213,090
230,501
SEA2
285,833
298,647
273,436
291,958
272,792
281,504
304,564
SEA3
144,007
150,910
136,568
147,940
136,959
143,314
154,748
37
63
115
133
172
249
555
2. Sloping Agricultural Land

Technology (SALT) for
Moderate Erosion
241
410
745
860
1,115
1,612
2,510
3. Vegetative and
Engineering Measures
for Severe Erosion
355
606
1,100
1,270
1,646
2,381
3,705
128,018
228,311
377,507
468,345
564,885
8,108
14,278
23,572
29,395
35,316
53,034
127,992
Moderate Erosion
68,760
122,577
203,710
251,089
304,122
453,869
764,318
Severe Erosion
51,150
91,456
150,225
187,861
225,447
341,171
573,398
1. Agronomic Cover for

Slight Erosion
Total Cost
Slight Erosion
848,074 1,465,709
Note:
1
Cost of soil and water management conservation measures was obtained from the PSA Study (July
1996)
2
Estimates of cost for other years were derived using an index of legislated wage rate for palay
farmers were obtained from the BAS
21
REFERENCES
Bartelmus, P. 1996. Statistics Division. DESIPA. United Nations Development Programme

(UNDP). New York.
Bureau of Agricultural Statistics. 1988-1994.
Agriculture. Quezon City, Philippines.
Rice and Corn Survey. Department of
National Statistics Office. 1991. Census of Agriculture (CA).. Manila, Philippines.

Crop Development and Soil Conservation Framework for Mindanao Island. 1990.
Agricultural Land Management and Evaluation Division (ALMED). Quezon City.
Bureau of Soils and Water Management. Department of Agriculture. Quezon City,
Philippines.
Cruz, W. et. al. 1987. The On-Site and Downstream Costs of Soil Erosion in the Magat
and Pantabangan Watershed. Philippine Institute of Development Studies (PIDSIDRC). Makati City, Philippines.
Espino, R.R.C. 1995. Horticulture & Pollution. Paper Presented in Seminar-Workshop by the
TWG on Environmental Statistics. Philippine Statistical Association (PSA). Quezon
City, Philippines.
Francisco, H. A. 1993. Upland Soil Resources of the Philippines: Resource Assessment
and Accounting for Soil Depreciation. ENRAP-REECS. Quezon City, Philippines.
Francisco, H. A. et. al. 1996. Agricultural Production and the Environment: Focus on Grain
and Livestock Sub-Sectors in Mindanao. Philippine Statistical Association (PSA).
Quezon City, Philippines.
Geron, Maria Piedad. 1933. The Use of Market-Based Incentives in Agriculture Sector.
National Accounts of the Philippines. 1988-1995. Economic and Social Statistics Office.
National Statistical Coordination Board. Makati City, Philippines.
Orbeta, E.M., et. al. 1995. Valuation of Direct Environmental Waste Disposal Services.
ENRAP III. Quezon City, Philippines.
Philippine Council for Sustainable Development. 1990. A Conceptual Framework.
Department of Environment and Natural Resources. Quezon City, Philippines.
Selected Technical Information on Agricultural Crops, Fishery and Forestry. 1975.
Agriculture Staff. National Economic and Development Authority (NEDA). Pasig City,
Philippines.
UN Handbook on the System of Integrated Environmental and Economic Accounting
(SEEA). 1993. DESIPA. Statistics Division. United Nations. New York.
UPLB AgroForestry Program. 1994. Soil and Water Conservation and Management. A
Training Manual. University of the Philippines at Los Baos. Los Baos, Laguna,
Philippines.
22
Intensive Shrimp
Aquaculture
2.2.1
INTRODUCTION
2.2.1.1 Industry Description

The supply of fish from marine and municipal fisheries is unlikely to meet the
growing demand for aquatic products. The development of other sources of marine and
aquatic products is necessary to ensure the continuous supply for an ever-increasing market.
As such, aquaculture plays a vital role in the economy. In 1994, aquaculture production
increased its contribution to total fish production to 791,444 metric tons (MT) or 29 percent
from 599,554 MT or 26.2 percent in 1988. Production was valued at P15,213 million in 1988 to
P 35,280 million in 1994. Aquaculture grew at an annual average rate of 15.34 percent during
the six-year period compared with 12.9 percent for commercial fishery and 7.1 percent for
municipal fishery. Aquaculture production in the Philippines continues to be dominated by
milkfish (Bangus) culture. However, the culture of high-value species such as the prawn
(Sugpo) has developed in the 1980s. Prawn production contributes less, quantity-wise, than
milkfish production, but its high unit price results in a higher contribution in terms of value.
Sugpo production is predominant in Region III, Region VI and Region VII.
Although there are substantial economic benefits derived from aquaculture increased income, employment and foreign exchange earnings, it has a significant impact on
the environment. It utilizes resources usually meant for other economic activities and causes
changes in the environment. It can alter natural food chains and natural habitats devoted to it.
Therefore, it is essential that the effects of aquaculture, particularly prawn production on the
environment be assessed.
2.2.1.2 Scope and Limitations of the Study

This study focuses on the measurement of environmental degradation brought
about by the intensive culture of shrimps, expressed in physical and monetary terms. The
monetary estimates used the maintenance cost approach, which accounts for the expenditure
required to control or abate the environmental degradation caused by shrimp culture, where,
in this study, was limited to the use of biofilters.
Intensive culture of shrimps is marked by increased inputs resulting to a high level
of nutrient and organic loads per unit area. Intensive culture of shrimps, therefore, poses
greater threat to the environment, particularly, land and water resources than extensive or
semi-extensive types of culture. This study, however, only considered environmental
degradation to the water media due to data constraints. Water effluents covered include
phosphates, nitrite, nitrate, ammonia, BOD, total suspended solids (TSS), total solids and
settleable solids.
2.2.1.3 Production Process and Pollutants Generated

Three types of shrimp culture methods are commonly practiced in the Philippines:
extensive, semi-intensive and intensive shrimp culture. The differences between these types
are based on the type of feeds, water management, stocking density, culture period, pond size
and pond development costs, survival, and average production per year. Details and
comparison of the culture types are included in Appendix Table 2.2.1. This study however,
concentrated only on intensive shrimp culture.
The production process involved in shrimp culture is best illustrated in Figure 2.2.1.
It includes pond preparation and management, stocking, water management, feeding and
harvesting. Also shown in Figure 2.2.1 are the inputs to each production process and the
corresponding wastes generated from the processes.
23
INPUT
Pesticides, Lime,
Fertilizers
PROCESS STAGE
POND PREPARATION
AND MANAGEMENT
WASTE
BOD*, Toxic chemical

residues
STOCKING
Pumping in of
water
WATER
MANAGEMENT
Shrimp feeds
FEEDING
BOD*, Sludge
HARVESTING
BOD*, Sludge
Salt intrusion in
freshwater aquifer
Source:
BFAR
* Pollutant estimated in this study, physical and monetary
FIGURE 2.2.1
PRODUCTION PROCESS OF INTENSIVE SHRIMP AQUACULTURE
24
2.2.1.4

2.2.1.4.1
To Water
Use of Feeds and Fertilizers
Pollution from intensive shrimp aquaculture comes from the waste and organic
matter derived largely from the input of feeds and fertilizer. Nutrient and organic wastes
consist of solid matter (uneaten food, feces and phytoplankton) and dissolved metabolites
(ammonia, urea and CO2). The major impact of feeds and feeding techniques consist of
hypernutrification, the most important pollutant being the nutrients which normally limit primary
production - inorganic phosphate and nitrogen. The amount of feed wasted also has an
important role in total waste loading. Because feeds settle directly to the pond bottom, feed
wastage has a significant effect on sediment quality.
Water effluents from shrimp culture consist of BOD, phosphates, nitrogen in the
form of nitrites and nitrates, ammonia, total solids, suspended solids and total settleable
solids. These pollutants are included in this study.
Use of Chemicals and Chemotherapeutants
With the expansion of intensive shrimp aquaculture, chemical use has become an
increasing part of the management techniques. Chemicals are used in intensive fishponds as
medicaments for the treatment and prevention of diseases and, to some extent, improve
water quality. These are also used as feed additives and disinfectant. It has been reported that
extensive use of antibiotics in shrimps has resulted in resistant strains of pathogenic bacteria
in the pond. Larval shrimps that were given antibiotics were shown to be sensitive to external
stress and wild pathogens once they leave the hatcheries. This may result in mass mortality.
Shrimp brooders consuming antibiotics over a long period of time were found to have lower
egg quality. However, there is not enough information on the types and the exact amounts of
chemicals used in the country because some shrimp farmers are hesitant to disclose such
information. Water effluents and chemicals used in fishponds settle in the pond bottom and
may have several impacts in the receiving waters. Among these are:
1. Reduced dissolved oxygen because of the breakdown of organic matter and other
waste materials.
2. Eutrophication of receiving waters that may result in algal blooms.
3. Increased sedimentation due to organic matter, leading to changes in productivity
and benthic community structure (Phillips, 1993).
The impacts, however, depend on the capacity of the receiving waters to assimilate
the waste materials and chemicals. At present, the treatment of effluent discharges from
shrimp ponds are still in the early stages of development.
The expansion of intensive shrimp aquaculture also affect the mangrove areas.
These areas are often converted to fishponds for shrimp culture thus the significant decline in
mangrove areas over the years. Clearing of mangrove areas demolishes the breeding habitats
for fry and fingerlings of important species and the removal of coastal protection from erosion
by wind and water. However, in this study there is no estimate of degradation to land.
Aquaculture development may result in saltwater intrusion and salinization of
freshwater aquifers. Salinization results in the degradation of domestic and agricultural water
supply which makes it unfit for domestic and agricultural use (Aypa, 1997). Moreover,
overpumping of freshwater from underground for fishponds may cause sinking of the soil
surface and intrusion of saltwater to freshwater aquifers. Due to data constraints, however, no
estimation for these effects both to land and water were included in this study.
2.2.2
SOURCES AND METHODS
25
2.2.2.1 Data Sources

The data on volume of fish and prawn production as well as the area of intensive
shrimp fishponds were taken from the BAS. The Bureau of Fisheries and Aquatic Resources
(BFAR), on the other hand, provided data on the cost of using biofilters in shrimp fishponds.
A study by the Institute of Aquaculture of the University of the Philippines at Visayas
(UPV) provides the data on pollution load coefficients per effluent used in the estimation of the
volume of pollutants in physical terms. This study measured the extent of the contribution of
aquaculture effluents on the pollution of Imbang River, Silay, Negros Occidental. Pollution
loads from six aquaculture ponds discharging into the river were taken, for a period of two
years (May 1993 to February 1995).
In terms of the monetary estimates, the data on the GVA for aquaculture were
obtained from the National Accounts of the Philippines compiled by the NSCB.
2.2.2.2 Estimation Methodology

2.2.2.2.1
Physical Estimation
Water quality and quantity are critical values in shrimp culture. Water should be free
from pollution and should be within the required temperature and salinity. Hence, there is a
need for a regular water change and discharge throughout the culture period. Appendix Table
2.2.2 summarizes the frequency of water change required and the volume of water
discharged.
2.2.2.2.2
Monetary Estimation
At present, there is little information on pollution control devices or wastewater

treatments used in intensive shrimp culture. However, there is an ongoing project being
conducted by the Aquaculture Division of the BFAR on the use of Biofilters (mussels and
seaweeds) to treat the water discharged from the ponds during water exchanges.
Biofilters are living organisms that feed on suspended solid particles and impurities
in liquids. In this study, the water reservoir area, or 10 percent of the total area devoted to
shrimp aquaculture is used for waste treatment. Mussels and seaweeds are put in place
alternately using the line method (nylon ropes are placed in the water where the mussels and
seaweeds will cling). The water treated in this area came from the pond during water
exchange. The biofilters will feed on the excess nutrients and suspended particles in the
water, thereby eliminating and filtering effluent discharges. This study, however, is still
ongoing. There are no definite results yet regarding its efficiency and effectiveness. For lack
of information and parameters to estimate the cost of environmental degradation, the
parameters used in the study of the BFAR were applied in this estimation.
To compute for the volume of mussels (biofilter) per wastewater pond (ha.), it was
assumed that one mussel can filter 25 liters of water in 24 hours. The total volume of water
needed (in liters) was derived by multiplying the volume of water per flushing by the frequency
of water change. The number of mussels required for a pond was calculated as follows:
The derived figure is divided by 25 liters, then divided by the number of days every
flushing. Based on the above computation for the number of mussels required, the maximum
number of mussels is taken. Hence, the estimate of 16,800 mussels needed to treat the total
volume of water discharged per hectare is used. To convert this figure to kilograms, the
number is divided by the average number of mussels per kilo. Hence:
26
16,800 mussels / 20 mussels. (avg. no. of mussels/kilo) = 840 kg of mussels

To compute for the volume of seeweeds (biofilter) per wastewater pond, it was
assumed that 100 grams of seaweeds are placed one meter apart in the pond, therefore, 400
gm. or .40 kg of seaweed is needed per square meter, or a total of 400 kg. of seaweed is
needed, assuming that the area of wastewater pond is 1,000 square meter. To get the total
amount of seaweeds needed for the total wastewater pond area, it was assumed that 10
percent of the total area occupied by fishponds is reserved for wastewater treatment.
Finally, to get the value of the mussels and seaweeds needed, the number of kilos
of mussels and seaweeds required (840 kg. for mussels; 400 kg. for seaweeds) were
multiplied by their average price per kilo (see Appendix Table 2.2.6).
2.2.3
RESULTS
2.2.3.1 Physical Estimates

Table 2.2.1 shows the trend in the volume of pollutant loads over the period 1988 1994. The highest level of pollutant came from Total Solids (TS) which are mainly composed
of uneaten food, feces and phytoplankton. Total TS discharges reached 1.21 billion MT in
1988 to 1.64 billion MT in 1994. This was followed by TSS with 11.9 million MT in 1988 to
16.2 million MT in 1994.
TABLE 2.2.1
TOTAL EFFLUENT LOAD1, IN THOUSAND METRIC TONS, 1988-1994
YEAR
BOD
19881991
1,022.4
7.8
1992
874.8
1993
1994
1
PO4-P
NH3-N
NO2-N
NO3-N
TS
TSS
6.5
1.3
6.6
5.6
830.8
6.4
1,393.2
10.6
SS
2.9
1,206,269.4
11,878.1
7.8
1.1
2.5
1,032,045.2
10,162.5
6.7
5.3
1.1
1.2
980,176.9
9,651.8
6.3
8.9
0.9
2.0
1,643,824.6
16,186.7
10.6
Pollution Load (MT/Ha) x 10 percent of Total hectares x no. of cropping (2)
Among the nutrient discharges, phosphates (PO4-P) accounted for the bulk of
pollution. It amounted to 7,800 MT in 1988 and 10,600 MT in 1994. Nitrites (NO2-N)
generated the least pollution, with 1,300 MT in 1988 and further decreasing to 900 MT in
1994.
2.2.3.2 Monetary Estimates

The estimated environmental degradation cost of intensive shrimp aquaculture
increased from P15.3 million in 1988 to P 25.8 million in 1994. The highest expenditure of 29
million was incurred in 1991. This was due to the steep rise in the price of mussels for that
year. The degradation cost declined in 1992 and 1993 then increased to P 25.8 million in
1994. Table 2.2.2 summarizes the environmental cost of intensive shrimp aquaculture.
27
TABLE 2.2.2
Year
TOTAL ENVIRONMENTAL COST USING BIOFILTERS, IN THOUSAND

PESOS, 1988-1994
10 Percent of Total Area
of Intensive Shrimp
Fishponds (Ha)
Cost of Biofilters
(Per Ha/Year)
Environmental
Cost
1988
16.828
907
15,263
1989
17.538
907
15,907
1990
20.972
907
19,022
1991
31.914
907
28,946
1992
26.560
776
20,611
1993
19.790
737
14,585
1994
20.846
1,236
25,766
2.2.3.3 Environmentally Adjusted Net Value Added (EVA)

For the period 1988-1994, NVA increased from P 10.73 billion in 1988 to P 26.93
billion in 1994. This translates to an annual average increase of 16.8 percent over the
reference period (Table 2.2.3)
The EVA likewise increased from P 10.72 billion in 1988 to P 26.90 billion in 1994
(Figure 2.2.2).
Results show that the pollution generated by the intensive culture of shrimp
intensified over the accounting period, as the environmental cost increased each year. This
also shows that the environmental cost is considerable, in view of the rapid intensification and
expansion of the industry.
TABLE 2.2.3
YEAR
ENVIRONMENTALLY ADJUSTED NET VALUE ADDED (EVA), IN MILLION

PESOS (AT CURRENT PRICES), 1988-1994
GVA
DEPRECIATION
NVA
[1]
[2]
[3]=[1]-[2]
ENVIRONMENTAL
COST
[4]
EVA
[5]=[3]-[4]
1988
10,822
88
10,734
15
10,719
1989
11,335
133
11,202
16
11,186
1990
13,160
185
12,975
19
12,956
1991
16,215
215
16,000
29
15,971
1992
18,562
294
18,268
21
18,247
1993
21,512
601
20,911
15
20,896
1994
27,384
454
26,930
26
26,904
28
27,000
24,000
Environmental
Degradation Cost
21,000
18,000
Depreciation
15,000
12,000
9,000
6,000
EVA
3,000
0
1988
1989
FIGURE 2.2.2
2.2.4
1990
1991
1992
1993
1994
INTENSIVE SHRIMP AQUACULTURE: EVA, DEPRECIATION AND

ENVIRONMENTAL DEGRADATION COST, IN MILLION PESOS (AT
CURRENT PRICES), 1988-1994
RECOMMENDATIONS
The lack of information and adequate research regarding pollution from intensive
shrimp aquaculture prevented this study in coming up with definite conclusions. Regular
assessment and monitoring of environmental changes associated with aquaculture
development should be implemented by concerned agencies to properly account for the
pollution in the industry.
There is also a need to develop regulation standards for aquaculture regarding farm
design, siting and system management to promote the economic growth of the industry and at
the same time, ensure that the environment is conserved and protected.
Lastly, the conduct of regular activities such as cost of production survey (including
environmental expenditures) and aquaculture survey, in general, should be done by BFAR or
BAS. These data will provide vital inputs to the proper accounting of environmental damages
due to intensive shrimp aquaculture.
29
APPENDIX 2.2.1
TYPES OF SHRIMP AQUACULTURE PRACTICES
A.
Extensive - This type of culture is done in relatively bigger ponds with size ranging from
2 to 20 hectares. It relies mainly on natural food and tidal fluctuation for water
exchange. Fertilizers may also be added. Stocking density is from 1,000 to 10,000 per
hectare. Yearly production ranges from 100 to 500 kg/ha/year. Low input and low
yields characterize this type. Extensive culture of shrimp has no significant pollution
loading of organic matter to the ecosystem.
B.
Semi Intensive - The progression form extensive to semi-intensive culture is marked

by increased inputs. Supplementary feeding of pellets, trash fish, etc., are given only if
natural food is not sufficient. Water pumps are used along with tidal water for water
exchange. Stocking density is from 10,000 to 50,000 per hectare. Pond size ranges
from 1 to 5 hectares. Production is relatively higher than in an extensive culture, at 500
to 4,000 kg /ha/yr.
C.
Intensive - This type of culture is totally independent from nature. It relies completely on
formulated diets in pellet form. It has a high stocking rate of 50,000 to 300,000 per
hectare. Its production reaches 5 to 15,000 kg/ha/year. Water exchange is by means of
pumps and use of paddlewheels. Pond size is smallest at 1,000 sq. meters to 1
hectare. The degree of intensification is defined according to feeding practice,
accompanied by increased amount of labor, capital and mechanization.
30

COST OF BIOFILTERS PER WASTE TREATMENT POND
1988
1989
1990
1991
1992
1993
1994
MUSSEL
P/kilo
9.00
9.28
11.08
17.13
13.60
9.71
10.51
Amount / ha.
7,560.00 7,795.00 9,307.00 14,389.00 11,424.00 8,156.00 8,828.00
1. Amount / ha. x 15,120.00 15,590.00 18,614.00 28,778.00 22,848.00 16,313.00 17,657.00
No. of cropping
SEAWEEDS
P/kilo
Amount / ha.
2. Amount / ha. x
No. of cropping
3. Subtotal (1+2)
1.97
788.00
1,576.00
2.25
900.00
1,800.00
2.73
1,092.00
2,184.00
3.66
1,464.00
2,928.00
4.37
1,748.00
3,496.00
4.06
1,624.00
3,248.00
3.69
1,476.00
2,952.00
16,696.00 17,390.00 20,798.00 31,706.00 26,344.00 19,561.00 20,608.00
4. Labor Cost
132.00
148.00
174.00
208.00
5. TOTAL (3+4)
16,828 17,538.00 20,972.00 31,914.00 26,560.00 19,790.00 20,846.00
216.00
230.00
238.00
31

FREQUENCY OF WATER CHANGE AND VOLUME OF WATER DISCHARGED, IN CUBIC
METERS PER HECTARE
VOLUME OF WATER
DISCHARGED
PER HECTARE
(cm3)
DAYS OF
CULTURE
FREQUENCY OF
WATER EXCHANGE
PERCENT
OF WATER
CHANGE
1-30 days
Once (every 30 days)
45
3,150
31-60 days
2x (every 15 days)
45
6,300
61-90 days
4x (every 7.5 days)
45
12,600
91-harvest
2x (every 15 days)
45
6,300
TOTAL
28,350
To compute for the volume of water discharged (in cm 3.ha), the total volume of water
per hectare is derived:
One hectare of fishpond is equivalent to 10,000 m 2 with a pond depth of 0.7 meters.
Hence, the total volume is equivalent to 7000 m 3:
Volume of water/ha = 10,000 m 2 x 0.7 m
= 7,000 cm3
Hence, the volume of water discharged for day 1-30 is equal to the Total volume of
water per hectare x percent of water change
= 7,000 cm3 x 45 percent
= 3,150 cm3
32

WATER POLLUTANTS IN AN INTENSIVE SHRIMP POND
POLLUTANTS
AVERAGE
POLLUTION
LOAD
(Mg/liter)
BOD
POLLUTION LOAD (PL)

(kg/ha/cropping)
(MT/ha)
19.880
563,598
563.6
PO4-P
0.151
4,292
4.3
NH3-N
0.127
3.589
3.6
NO2-N
0.002
71
0.1
NO3-N
0.056
1.59
1.6
TS
23,456.000
664,977.60
664,977.6
SS
0.151
4,28
4.3
230.970
6,458,000
6,458.0
TSS
Source: Gonzales, G. A. et. al. River Pollution: An Investigation of the Influence of

Aquaculture and other Agri-industrial Effluents on a Commercial Waterway,
Institute of Aquaculture, College of Fisheries, UP Visayas.
To compute the pollution load by pollutant expressed in kg/ha, the volume of water
discharged per hectare (28.350 cm3) was multiplied by the respective average pollutant load
as shown in the equation below:
Pollution Load (PL) = Total volume of water discharged per hectare x average
pollution load
Example: pollution load of BOD = 28,350 x 19,880
= 563,598 kg
To express this in MT/ha, the derived figure is divided by 1000
Hence:
563, 598 kg 1000 is equal to 563.6 kg
In the estimation of total pollution load (TPL) (Table 2.2.1) each pollutant load
(expressed in MT/Ha) was multiplied by 10 percent the total area of intensive brackish shrimp
fishpond for the year multiplied by the number of croppings per year, as shown in the following
equation:
TPL = pollution load x area x no of cropping /year
where:
No. of cropping per year = 2
Example:
TPLBOD1988 = 563.6 x 907 x 2
= 1,022.4 MT
33

AREA OF INTENSIVE PRAWN FISHPONDS AND WATER RESEVOIR, IN HECTARES,
1988-1994
Area
Shrimp Fishponds
Water Reservoir area (10%)
1988
1989
1990
1991
1992
1993
1994
9,065
9,065
9,065
9,065
7,755
7,371
12,361
907
907
907
907
776
737
1,236
Source: BAS (benchmark data for 1992)

ESTIMATION OF THE REQUIRED NUMBER OF MUSSELS
WATER FLUSHING
REQUIRED
NUMBER OF
MUSSELS
NO. OF
DAYS OF
CULTURE
Frequency
1-30 days
Once (every 30 days)
3,150
4,200
31-60 days
2x (every 15 days)
6,300
8,400
61-90 days
4x (every 7.5 days)
12,600
16,800
91-harvest
2x (every 15 days)
6,300
8,400
TOTAL
Total Volume
(in Liters)
28,350
For culture day 1 30, the required number of mussels is computed as follows:
a) total volume in cm3 is converted into liters, thus,
no. of mussels = volume (in liters/25liters) 30 days
= 43,150 cm 3 x 1000 25 30
= 4,200 mussels
34
REFERENCES
Aypa, Simeona M. 1997. Milkfish and Shrimp Culture in the Philippines. pp 1-6. Bureau of
Fisheries and Aquatic Resources. Quezon City, Philippines.
Barg, U.C. 1992. Guidelines for the Promotion of Environmental Management of Coral
Aquaculture Development. Fisheries Technical Paper 328. Food and Agriculture
Organization. Rome.
Bureau of Agricultural Statistics. 1981-1990. Selected Fishery Statistics.
Philippines.
Bureau of Fisheries and Aquatic Resources. 1988-1994.
Quezon City,
Philippine Fisheries Profile.
Blanco, Billy P. Jr. and Jacqueline Pimentel. Prawn Farming. Bureau of Fisheries and
Aquatic Resources. Quezon City, Philippines.
Braaten, Bjorn and Halver Hektocn. January 1991. The Environmental Impact of
Aquaculture. A study report for the Regional Workshop on Fish Health Management
held in South Korea. October 1990. Report Series #1. Agriculture Department. Asian
Development Bank.
Bueno, Pedro (Ed). 1996. Aquaculture Asia. July to September 1996 Issue. Network of
Aquaculture in Asia Pacific. Bangkok, Thailand.
Edwards, Peter. 1990. Environmental Issues in Integrated Agriculture-Aquaculture and
Wastewater - Fed Fish Culture Systems. ICLARM Conference Proceedings. pp. 139170. West Germany.
Ferguson, Hugh. June 1991. Overview of Finfish Diseases in an Aquaculture Setting.
University of Guelph. Ontario, Canada.
Padilla, J. E., et. al. June 1997. Evaluation of Economy Environment Interaction in the
Lingayen Gulf Basin: A Partial Area Based Accounting Approach. ENRAP IV. Quezon
City, Philippines.
Philips, M. J., C. Kwei Lin and M.C.M. Beveridge. September 1990. Shrimp Culture and
the Environment: Lessons from the Worlds Most Rapidly Expanding Warmwater
Aquaculture Sector. Paper presented during the International Conference covered by
ICLARM and the Deutche Gessellschaft for Technische Zusammenarbeit (GTZ),
GmbH at the Bellagio Conference and Study Center of the Rockefeller Foundation. pp
171-197. West Germany.
Pullin, Roger S.V. 1993. An Overview of Environmental Issues in Developing Country
Aquaculture. pp 1-16. ICLARM. Makati City. Philippines.
Taberna, E. T. 1995. The Influence of Aquaculture Effluents on the Pollution of Imbang River
in Silay, Negros Occidental. Institute of Aquaculture, College of Fisheries. UP
Visayas. Miag-ao, Iloilo.
_______________. 1996. The Impact of Aquaculture on the Environment. A paper presented
during the Fisheries Forum conducted by the Department of Agriculture Region IV in
October 30-31, 1996 held at the UP Alumni Center. Diliman, Quezon City, Philippines.
35
Hog Raising
Hog Raising
2.3.1
INTRODUCTION
2.3.1.1
From 1988 to 1994, the hog industry contributed 77 percent to the total GVA of the
livestock sector. This accounted for 10 percent of the combined GVA in Agriculture, Fishery
and Forestry sectors. At current prices, the GVA of the industry grew at a rate of 11.4 percent
annually from P14.2 million in 1988 to P34.6 million in 1994.
Results of the nationwide survey of the PSA showed that commercial hog farms
employed about 12,000 workers, employing 7 full-time workers per 1,000 full-time employees
in all industries. The hog industry is also known for its environmental impact. The hog
industry is a highly pollutive industry and ranked second to food processing in terms of BOD
discharges. The sector generates around 1,000 metric tons of BOD per day and accounts for
27 percent of the total BOD discharges of 10 most pollutive industries in the Philippines
(Montgomery, 1992).
2.3.1.2
This study covers the accounting in physical and monetary terms of the
environmental degradation caused by the hog industry for the period 1988 to 1994. The study
covered only pollutants to water, namely: BOD5, SS, Nitrogen (N) and Phosphorous (P).
Pollutants to land and air were not considered due to the unavailability of required data and
parameters.
The monetary estimates of environmental degradation covered only the cost of
reducing BOD loads in wastewater discharges to effluent standards level. In practice,
wastewater treatment plants (WTPs) in the industry are designed primarily for controlling
BOD discharges. Use of separate treatment plants for other pollutants is not commonly
practiced.
2.3.1.3
There are six (6) stages in hog raising, namely: breeding, gestation, farrowing,
weaning, starting, growing, and, fattening and finishing. In each stage, wastes generated
include feed spills, manure, urine, wastewater, placentas and mortalities. These wastes if not
controlled or properly disposed can cause pollution to the environment (see Figure 2.3.1).
Wastes generated from hog farms affect the quality of the environment. These can
either lower or upgrade the quality of the receiving environmental media depending on the
volume of waste generated and where they are discharged. The organic wastes from the
industry can improve the productivity of the agricultural land when used as fertilizer.
However, when these discharges exceed the assimilative capacity of the receiving
environmental media (air, water and land), it can lower the quality of the media. Indiscriminate
discharge of organic wastes into water bodies also causes major environmental problems.
These wastes which contain phosphorous (P) and nitrogen (N) facilitate algal bloom.
Excessive proliferation of algae significantly contributes to the clogging of sewage systems
and depletion of dissolved oxygen in receiving water bodies. The wastes can also alter the
natural physico-chemical properties (i.e., pH, turbidity and hardness) of the receiving water
bodies and may cause detrimental effects on the living organisms in the water ecosystems.
36
Hog Raising
INPUT
PROCESS STAGE
WASTE
HOGS
Feeds, Water
BREEDING
OF STOCKS
Feed Spills, Manure

PM, SOx, NOx, VOC, CO,
BOD*, SS**, N**, P**
Feeds, Water
GESTATION
Feed Spills, Manure

BOD*, SS**, N**, P**
Feeds, Water,
Medicine
FARROWING
Feed Spills, Manure,

Mortalities
BOD*, SS**, N**, P**
Feeds, Water,
Medicine
WEANING
Feed Spills, Wash water,

Mortalities
BOD*, SS**, N**, P**
Feeds, Water
GROWING
Feed Spills, Manure

BOD*, SS**, N**, P**
Feeds, Water
FATTENING/
FINISHING
Feed Spills, Wash water

BOD*, SS**, N**, P**
Source:
IEMP/PRC, EMI
* Pollutant estimated in this study,
physical and monetary
** Pollutant estimated in this study,
physical
FIGURE 2.3.1 HOG RAISING PRODUCTION PROCESS

37
Hog Raising
2.3.1.4
Treatment Process
The common WTP in hog industry can be divided into two stages namely: the
primary or physical treatment and the secondary or biological treatment. Primary or physical
treatment involves sedimentation, filtration, solid-liquid separation which are done manually or
by the use of pit and settling/septic tank. This treatment has about 30 percent BOD removal
efficiency. Secondary or biological treatment involves aerobic and anaerobic oxidation. This
process can be done by the use of lagoons or oxidation ponds. The combination of physical
treatment and secondary treatment has 90-95 percent BOD removal efficiency.
Reducing BOD and SS loads in wastewater to the effluent standard level can be
achieved by both the primary and secondary treatment process, while reduction of N and P
requires tertiary treatment which is more costly compared to other two types of treatments
(PSA, 1994). In practice, WTPs in the industry are designed primarily for controlling BOD
discharges.
2.3.1.5
Assumptions
The study, owing to the lack of data/information or parameters, employed several

assumptions in coming up with the physical and monetary estimates for the environmental
degradation caused by the hog industry. These are:
The average of the quarterly inventory of hogs was assumed to be equal to the
total number of hogs alive throughout the reference year.
The volume of waste discharged and the degree of degradation to the

environment were assumed to be directly proportional. This was based on the
premise that the greater the amount of discharges to the environment, the more
serious are the effects on the environment in consideration of the absorptive
capacity of the environment.
Backyard hog farms pollution reduction was assumed to be zero.
Environmental Protection Cost (EPC) for the industry was limited to the cost of
reducing BOD5 discharges to effluent standard level.
2.3.2
SOURCES AND METHODS
2.3.2.1
Data Sources
The data on annual inventories of hogs by farm type (backyard farms and
commercial farms) were obtained from the available data on quarterly inventory of the BAS.
The distribution of the total hogs by sow level in commercial piggeries was based on the 1995
Survey of the Philippine Major Hog/Sow/Fattener Suppliers conducted by the PSA. This was
used to estimate the AnCC and AOMC of WTP (see Appendix Table 2.3.1)
Controlled BOD discharges were calculated based on the assumption that
commercial hog farms had BOD removal efficiency of 59.4 percent in 1993. This was based
on the study of Orbeta and Calara in1995. This ratio was assumed to be constant over the
period 1988 to 1994.
The pollution load factors that were adopted are the results of studies conducted by
the Industrial and Environmental Management Program (IEMP). Other parameters were
taken from the study on water pollution undertaken by the Water Pollution and Quality
Division of the Metropolitan Water and Sewerage System (MWSS).
38
Hog Raising
The basic input data for the estimation of the cost per metric ton of BOD reduction
by WTP capacity were taken from the 1992 report of the Industrial Efficiency and Pollution
Control Program (IEPC). The unit capital costs of WTP by capacity were interpolated from
the estimated engineering cost of WTP (Appendix Table 2.3.1). One limitation of the cost
estimate, however, was the exclusion of the cost of land to the total estimated costs.
The data on GVA, NVA, GDP and Implicit Price Index (IPIN) of private construction
were taken from the National Accounts of the Philippines, a publication of the Economic and
Social Statistics Office (ESSO), NSCB.
2.3.2.2
2.3.2.2.1
Physical Estimation
The amount of pollutants generated by the hog industry was computed by

multiplying the Pollution Load Factor (PLF, see Appendix 2.3.2) by the total number of hog
raised for the period. The reported inventory of hogs from BAS was adjusted with an
undercoverage ratio of 20 percent. Pollutants were estimated separately for commercial and
backyard farms.
For example, the estimation for BOD5 was as follows:
BOD5com
BOD5byf
BOD5tot
= Hcom x PLFBOD5
= Hbyf x PLFBOD5
= BOD5com + BOD5byf
where :
BOD5com
BOD5byf
Hcom
Hbyf
PLFBOD5
=
=
=
=
=
BOD5 pollutants generated by commercial farms

BOD5 pollutants discharged by backyard farms
number of hogs raised by commercial farms for the period
number of hogs raised by backyard farms for the period
Pollution Load Factor of BOD5
The same methodology was used for other pollutants: SS, N, and P using
corresponding PLF factors. See table below for the effluent factors used in the estimation.
These pollutants were classified as controlled and uncontrolled.
Controlled
pollutants are total pollutant discharges controlled through treatment of wastewater generated
by the industry while uncontrolled pollutants are those that have escaped the WPT and those
that do not pass through any environmental control devices and are discharged freely into the
environment, particularly water bodies. The controlled pollutants were estimated by
multiplying the average efficiency of WTPs by the total amount of pollutants generated by the
commercial hog farms. Only commercial hog farms have WTPs. For backyard piggeries (20
heads and below), pollution control was assumed to be zero. Uncontrolled BOD5 consists of
those discharged from backyard farms and the uncontrolled BOD5 discharges of the
commercial hog farms.
= 59.4 percent of BOD5 com
BOD5 (cont)
BOD5 (uncont) = BOD5 (tot) BOD5 (cont), or
= BOD5 (uncont) + BOD5 byf
where:
BOD5 (cont)
= controlled BOD5 discharges
BOD5 (uncont) = uncontrolled BOD5 discharges of hog farms
= uncontrolled emission of commercial hog farms
39
Hog Raising
2.3.2.2.2
Monetary Estimation
In computing for the EPC, the cost of controlling BOD5 (EPE) and the required cost
of controlling the BOD5 that goes into the environment (REPE) should be determined.
The EPE represents the actual cost of controlling BOD5 (AnCC + AOMC) per metric
ton of effluent. This is computed by multiplying the amount of BOD5 discharged by the cost of
controlling one metric ton of the pollutant. This is represented below as:
EPE =
BOD5 cont x AC&MOC wpt
The REPE, on the other hand, would represent the required or incremental cost of
controlling BOD5. This is computed by multiplying the amount of uncontrolled BOD5 by 95%,
the average effluent standard prescribed by the DENR. The figure derived from this would
represent the amount of effluents that goes directly to the environment, the 5% being
assumed to have been absorbed or assimilated by the environment. This figure is then
multiplied by the cost of controlling BOD5 (AnCC + AOMC) per metric ton of effluent, or:
REPE =
BOD5 uncont x .95 x AC&MOC wpt
The total value of pollutants generated by the hog industry is then computed by
summing up the EPE and the REPE. As such, EPC is computed as:
EPC =
EPE + REPE
2.3.3
RESULTS
2.3.3.1
Physical Estimates
In 1994, the hog industry discharged an estimated 1,117 MT of BOD per day. This
translates to approximately 470 thousand MT for the year (see Table 2.3.1). Over the period
1988-1994, the total discharges exhibited an increasing trend, resulting from increasing
population of hogs raised during the period. The BOD5 discharges rose from 427,708 metric
tons in 1988 to 470,283 metric tons in 1994. The amount of SS generated by the sector was
also significant at 482,973 MT in 1994 (Table 2.3.2). Other water pollutants generated are
75,573 MT of Nitrogen and 12,882 MT of Phosphorous.
Backyard farms generated more pollutants than the commercial farms. In 1994,
BOD5 generated by backyard farms was estimated at 364,888 MT while that of commercial
farms was estimated at 105,395 MT. However, BOD5 generated by commercial farms
increased at a much higher rate than those generated by the backyard farms. From 1988 to
1994, the pollution generated by the commercial farms increased by 29.7 percent while that of
the backyard farms increased only by 5.3 percent.
40
Hog Raising
TABLE 2.3.1
ESTIMATED CONTROLLED AND UNCONTROLLED BOD5 DISCHARGES,

BY TYPE OF FARM, 1988-1994
BOD Discharges by Type of Farms
BOD Discharges (MT)
YEAR
Backyard
Commercial
Total
Controlled
Uncontrolled
Total
1988
346,430
81,278
427,708
48,279
379,429
427,708
1989
361,184
82,357
443,542
48,920
394,621
443,542
1990
360,757
89,086
449,843
52,917
396,926
449,843
1991
352,382
99,140
451,523
58,889
392,633
451,523
1992
362,142
86,103
448,245
51,145
397,100
448,245
1993
354,615
91,421
446,036
54,304
391,732
446,036
1994
364,888
105,395
470,283
62,605
407,679
470,283
Assumptions:
1. About 59.4 percent of BOD discharges of commercial piggeries were regulated based on the study
of Orbeta et. al. (1995); this was assumed to be constant for 1988 to 1994.
2. Pollution reduction in backyard piggeries (20 heads and below) was assumed to be zero
TABLE 2.3.2
Total
ESTIMATED WASTEWATER POLLUTION LOADS, BY TYPE OF FARM,

IN METRIC TONS, 1988-1994
Backyard Hog Farms
SS
Commercial Hog Farms

SS
Total
SS
1988
355,922
55,682
9,491
83,354
13,052
2,225
439,276
68,734
11,716
1989
371,080
58,053
9,895
84,461
13,225
2,254
455,541
71,279
12,150
1990
370,641
57,985
9,884
91,362
14,306
2,438
462,003
72,291
12,322
1991
362,036
56,639
9,654 101,673
15,920
2,714
463,710
72,559
12,368
1992
372,064
58,207
9,922
88,302
13,827
2,357
460,366
72,034
12,279
1993
364,331
56,998
9,715
93,756
14,681
2,502
458,087
71,678
12,218
1994
374,885
58,649
9,997 108,088
16,925
2,885
482,973
75,573
12,882
2.3.3.2
Monetary Estimates
The estimated total cost of reducing pollutant discharges in the hog industry
increased over the period 1988-1994. Total EPC was estimated at P 988 million in 1988 and
increased to P 2,019 million in 1994, increasing at the rate of 12.9 percent every year (Table
2.3.3).
The actual EPE of the industry in controlling its pollutant discharges was estimated
at P117 million in 1988 and at P281 million in 1994. This accounted for about 11.8 percent of
the total EPC for 1988 and 13.9 percent for 1994.
The required EPE for controlling the uncontrolled pollutant discharges was about
seven times that of EPE. REPE was estimated at P 871 million in 1988 and P1,738 million in
1994. This represents 88.1 percent of the total environmental protection cost and about 5.7
percent of the NVA (see Table 2.3.4).
41
Hog Raising
TABLE 2.3.3
YEAR
ENVIRONMENTAL PROTECTION COST, IN MILLION PESOS, 1988-1994
Implicit Price
Index - Private
Construction
(In Percent)
AnCC and
AOMC
(Per MT) for
BOD
Reduction
Environmental Protection Cost
Actual
Required
Total
1988
124.4
2.4
116.7
871.3
988.0
1989
148.0
2.9
140.7
1,078.1
1,218.8
1990
167.5
3.2
172.1
1,226.6
1,398.8
1991
198.8
3.9
227.5
1,440.7
1,668.2
1992
208.1
4.0
206.7
1,524.8
1,731.6
1993
214.7
4.2
226.5
1,552.2
1,778.7
1994
231.0
4.5
280.9
1,737.9
2,018.8
2.3.3.3
The EVA was estimated at P12,560 and P 30,775 million in 1988 and 1994,
respectively, while NVA was recorded at P13,432 and P 32,513 million in 1988 and 1994, or
an annual average growth rate of 16 percent. The computed EVA was 6.0 percent less than
the NVA (Figure 2.3.2).
TABLE 2.3.4
YEAR

(EVA),
GVA
Depreciation
NVA
REPE
EVA
[1]
[2]
[3]=[1]-[2]
[4]
[5]=[3]-[4]
IN
1988
14,226.0
794.2
13,431.8
871.3
12,560.5
1989
17,887.0
948.8
16,938.3
1,078.1
15,860.5
1990
23,065.0
1,247.4
22,357.6
1,226.6
21,131.0
1991
27,180.0
1,407.3
25,772.7
1,440.7
24,332.0
1992
30,584.0
1,614.9
28,969.1
1,524.8
27,644.2
1993
29,024.0
1,759.3
27,264.7
1,552.2
25,712.5
1994
34,563.0
2,048.8
32,513.2
1,737.9
30,775.4
42
Hog Raising
35,000,000
Environmental
Degradation Cost
30,000,000
25,000,000
Depreciation
20,000,000
EVA
15,000,000
10,000,000
5,000,000
0
1988
FIGURE 2.3.2
2.3.4
1989
1990
1991
1992
1993
1994
HOG INDUSTRY: EVA, DEPRECIATION AND ENVIRONMENTAL

DEGRADATION COST (AT CURRENT PRICES), 1988-1994
RECOMMENDATIONS
In this study, the computed environmental protection was underestimated which

could be addressed by accounting for other pollutants generated and their effects on the
environment. In the physical estimates, only four pollutants namely: BOD5, SS, N and P were
covered.
In the monetary estimation, only BOD5 reduction was accounted for. The
unavailability of other data needed for the estimation has limited the coverage of the
estimates
More intensive efforts of concerned agencies are needed to monitor the
environmental effects of the hog industry not only for commercial farms but also for backyard
farms. One of the strategies, which can be adopted to monitor the pollution in the industry, is
to enforce stricter requirements to the hog producers such as regular report to include the
stocks of hog by farm type as well as the laboratory analysis of end-of-pipe wastewater
discharges for submission to concerned agencies.
In assessing the extent of environmental degradation attributed to the industry, a
survey of hog farms should cover the environmental data requirements namely: a) hog
population by farm type; b) wastewater treatment plant used by type; and, c) actual
environmental protection expenditures to include the detailed cost of capital, maintenance
and operations.
43
Hog Raising
Based on the results of this study, the following areas need to be taken into
consideration to further refine the preliminary physical and monetary estimates:
a)
other pollutant emissions/discharges should be included in the estimation;
b)
estimation of EPCs should include the detailed expenditure cost of capital,

maintenance and operations; and,
c)
the estimation of EPCs should include not only the BOD5 discharges but
also the cost of reducing other pollutant discharges to the standard level
particularly SS, N, P and other pollutants.
44
Hog Raising

WATER TREATMENT PROCESS (WTP), CAPITAL, OPERATIONS AND MAINTENANCE
COST, IN THOUSAND PESOS, 1992
Number
of Hog
Farms
Cubic
meter
per day
Number
of hogs
(Heads)
Unit
Capital
AnCC
AOMC
Annual
Total Cost
Cost/MT
BOD
Reduction
84
30
84,000
4,980
498
75
48,107
10.45
107
40
142,667
5,330
533
80
65,586
8.39
65
50
108,333
5,670
567
85
42,383
7.14
56
70
130,667
6,360
636
95
40,958
5.72
67
110
245,667
7,680
768
115
59,174
4.39
35
190
221,667
10,250
1,025
154
41,256
3.39
14
260
121,333
12,350
1,235
185
19,884
2.99
22
450
330,000
17,360
1,736
260
43,921
2.43
750
150,000
23,310
2,331
350
16,084
1.96
1,350
45,000
27,940
2,794
419
3,213
1.30
2,700
180,000
39,690
3,969
595
9,129
0.92
Total
6,000
1,759,333
160,920
16,092
2,414
389,695
4.04
Source: Industrial Efficiency Control Program, 1992.
Assumptions:
3
1.
A 30 cm per day Water Treatment Process (a joint 10 and 20) is required to treat
wastewater generated by 1,000 hogs to meet the 95 percent BOD reduction standard.
Capital recovery is 10 years; estimation of capital costs assumed cost of land is zero.
Operations and maintenance cost is 15 percent (10-20 percent) of the annual capital
cost.
1,000 hogs generate about 54.8 mt BOD/yr; this corresponds to 0.15 kg/hd/day or 54.8
kg/hd/yr (based on MWSS).
1992 unit capital cost is interpolated based on the 1992 IEPC Final Report.
2.
3.
4.
5.

POLLUTION LOAD FACTORS, IN KG/HEAD/YEAR, 1993
Backyard Hog Farms
BOD5
PLF
43.8
SS
45.0
N
7.04
Commercial Farms
P
BOD5
1.2
54.8
SS
56.2
N
8.8
P
1.5
PLF of backyard farms was assumed to be 20 percent lower than commercial farms
Source: Industrial and Environmental Management Program (IEMP)
45
Hog Raising
REFERENCES
Arellano, F.A., et. Al. 1994. Hazardous Wastes Management in the Philippines. Metropolitan
Waterworks and Sewerage System. Quezon City, Philippines.
Bureau of Agricultural Statistics. 1988 -1994. Backyard Livestock and Poultry Survey.
Department of Agriculture. Quezon City, Philippines.
_____________________________. 1988-1994. Commercial Livestock and Poultry Survey.
Department of Agriculture. Quezon City, Philippines.
National Statistical Cordination Board. National Accounts of the Philippines. Makati City,
Philippines.
Industrial Environmental Management Project. 1992. National/Regional Industry
Prioritization Strategy Survey. PRC-Environmental Management, Inc. Pasig City,
Philippines
Montgomery, J. M. 1992. Industrial Efficiency and Pollution Control Program. 1992 Final
Report. Dames and Moore Philnor Consultants and Planners, Inc. Total Consultancy
Services Inc.
Orbeta, E. M. and Calara, A. N. 1995. Pollution in the Philippine Piggery Industry.
Environmental and Natural Resources Accounting Project (ENRAPIII). Quezon City,
Philippines.
Philippine Statistical Association ASSIST. 1994. Water Pollution Sources. Readings for
Pollution Sources Effects and Management. PSA-ASSIST, Inc. Quezon City,
Philippines
____________________________________. 1995. Philippine
Suppliers. PSA-ASSIST, Inc. Quezon City, Philippines
Major
Hog/Sow/Fattener
46
Logging of Dipterocarp and

Pine Forests
2.4.1
INTRODUCTION
2.4.1.1
The forestry sector plays an important role in the Philippine economy and
environment. It is the major source of timber, lumber, fuel wood and other wood based
products for export and domestic consumption. It is also a rich source of food, clothing
material, medicine and other raw material for various uses. Forests have also varied
ecological uses. It provides the main watersheds of rivers, serves as effective protector of
soils and regulator of water flows and carbon cycles as well as provide habitat for a multitude
of animal and plant life.
Out of the total land area of 30,000,000 hectares of the country, fifty three percent
or 15.88 million hectares were declared as forestlands, and 47 percent or 14.1 million
hectares are classified as alienable and disposable. The remaining forests are only about
5.69 million hectares or 19 percent of the total land area of the country, and only 0.81 million
hectares or 14 percent remained as dipterocarp old growth forests. The selective logging ban
in 1992 placed the remaining dipterocarp old growth forests under conservation and
protection of the National Integrated Protected Areas System (NIPAS). The residual forest on
the other hand, comprised 2.96 million hectares or 52 percent of the total forest area. Given
the governments strict imposition of the selective log ban, the gross value added for forestry
continued to decline. From 11.26 billion in 1988, it went down to 2.98 billion in 1994.
2.4.1.2
This study focused on the effect of logging activities to land, in particular. Land
degradation occurs due to soil loss in logged areas. For the forest types used in the study,
only dipterocarp and pine forests were covered due to data limitations.
2.4.1.3
Production Process
Selective logging is currently practiced In the Philippines. This involves the

systematic removal of mature, over-mature and defective trees and to leave an adequate
number of healthy residual trees of the commercial species and other tree species. This is
necessary to ensure future crop of timber and forest cover for the protection and conservation
of soil and water (Anda, 1996).
There are three phases of selective logging (Figure 2.4.1). The first phase is tree
marking, that is marking trees to be cut and trees to be left including marking the direction of
their fall. The second phase is the residual inventory that involves the evaluation of damages
to the marked residual trees and the condition, size and number of healthy trees left. In the
last phase, the timber stand improvement is done after logging to improve the number, growth
and quality of the growing stock.
The harvesting of logs is done by felling and bucking. Felling is the cutting of trees
using axe, crosscut saw or power-chain saw while bucking is the removal of limb and cutting
felled trees into desired product length at stumpsite. Transport of logs are done from the
stumpsite to the landing by skidding, yarding, swinging and transporting by road, water or air.
47
TIMBER STAND
IMPROVEMENT
RESIDUAL
INVENTORY
TREE
MARKING
HARVESTING
FIGURE 2.4.1
SKIDDING
SWINGING
TRANSPORT
LAND, AIR, WATER
Source:
Lecture notes of Mr. Alex Anda, National
Resource Development Corporation (NRDC)
YARDING
TRANSPORT OF LOGS
LOGGING INDUSTRY PROCESS FLOW
BUCKING
FELLING
48
2.4.1.4
Logging activities affect both the physical and biological conditions of the
environment. One of the damaging effects of logging activities is the depletion of forest
resources that often results into soil erosion, causing siltation of water bodies, nutrient loss
and organic matter depletion. Moreover, these activities contribute to the degradation of
water quality of surface and ground water.
Biologically, the effect of forest destruction is the loss of biodiversity and destruction
of habitat of flora and fauna species that often leads to their extinction. The loss of forest
resources due to logging activities also affects the atmosphere. This threatens the ability of
the biosphere to regulate atmospheric and biospheric cycles.
All stages of the logging activity results to soil erosion. Natural erosion also
happens when there are no logging in the area, which are covered by the uncut erosion rate.
2.4.1.5
Measures to Prevent Degradation to Environmental Media
Reforestation remains one of the major programs of the government to conserve

and abate destruction of the forests. This activity involves the planting of trees on mountain
base or in open lands that used to be covered with forest trees. The program also initiated the
propagation of seedlings and saplings to restore the depleted forest. Both the government
and the private sectors took part in the reforestation efforts. Nonetheless, reforestation efforts
hardly kept pace with deforestation. In 1994, a total of 49,551 hectares of forestland was
reforested. Thirty-six percent of the total area reforested was done by the DENR and 44
percent are from private sector efforts (PFS, 1994).
2.4.2
SOURCES AND METHODS
2.4.2.1
Data Sources
Data used for the study were derived from administrative reports and special
studies of research institutions. The Forest Management Bureau (FMB) provided data on the
volume of log production by region. The Forest Asset Accounts compiled by the Technical
Working Group (TWG) on Forest Resources of the ENRA Subprogramme, provided the
parameters for the total logged areas of dipterocarp and pine forests. A study on Upland Soil
Resources of the Philippines conducted by Dr. Francisco (1993) provided the data on
woodland erosion due to logging at the regional level. The Asian Development Banks (ADB,
1994) study on forestry was the source of indicator for erosion rates for cut and uncut forest.
Wage rate indices were obtained from the Bureau of Labor and Employment Statistics
(BLES). The data used for the estimation of environmental degradation costs were taken
from FMB. The NSCB provided data on GVA and NVA.
2.4.2.2
2.4.2.2.1
Physical Estimation
Total Logged Area (TLA)
In physical terms, logged area which represents the total logged area of dipterocarp
and pine forests was used (see Appendix Table 2.4.1). The available data on the volume of
log production was used to arrive at the regional data for logged area (see Appendix Table
2.4.2).
49
Soil Erosion (SEL)
Estimated soil erosion is equivalent to the amount of soil loss measured in metric
tons. Soil erosion due to logging (SEL) is the product of the erosion rates due to logging
(SELRt) and the total logged area. To estimate the soil erosion due to logging, the following
assumptions were taken into consideration:
1. Erosion Rates Due to Logging (SELRt) = erosion rate of cut forest (SERcut) erosion rates of uncut forest (SERunc)
2. Erosion rates for woodland by region, were used as indicators to come up with
SERcut and SERunc. Regional differentiation of erosion rate (regional erosion
rate/national erosion rate) of woodland was applied to the national erosion rate
of cut and uncut forest to derive a regional dimension. SELRt for each region
was derived as the SERcut less SERunc of that particular region (Appendix
Table 2.4.3).
The above assumptions were operationalized as illustrated in the following
equations:
SEL = SELRt x TLA
SELrt = SERcut SERunc
All erosion rates were expressed in Metric Tons per hectare.
2.4.2.2.2
Monetary Estimation
The maintenance cost approach was used to estimate environmental degradation

due to logging. It represents the cost on a per hectare basis of the establishment, protection
and maintenance of a forest area which covers cost for nursery operation and maintenance,
including cost of putting up infrastructures. The cost per hectare was further disaggregated
into labor cost and other costs i.e., supplies and materials, etc. (Appendix Table 2.4.4).
These costs which were obtained from the FMB, assume the cost of reforestation per hectare.
Data were available only for 1988. The wage index of laborers under non-agricultural
establishments and the IPIN of the forestry sector based on GVA were used as proxy
indicators to derive the cost for years 1989-1992. Labor wage index was applied on cost of
labor while IPIN was used for other costs.
To arrive at the estimated environmental degradation cost, the computed costs per
hectare was applied to the estimated total logged area which only cover logged areas under
dipterocarp and pine forests (Appendix Table 2.4.4). This is summarized in the equation
below:
EC = TLA x RFC
where:
EC = environmental cost
RFC = reforestation cost per hectare
50
2.4.3
RESULTS
2.4.3.1
Physical Estimates
The total logged area in the country in 1988 was estimated at 114,145 hectares. In
1989, it went down by 43 percent of the 1988 level. In the succeeding years, total logged
areas continued to decline until the total log ban. In 1992, total logged area was pegged at
zero level with strict enforcement of the log ban. From 1988 to 1991, the total logged area
declined at an annual rate of 5 percent. In 1991, it recorded a total of 40,250 hectares logged
area. Figure 2.4.2 shows the trend of the logged area for dipterocarp and pine forests from
1988 to 1994.
120,000
100,000
80,000
60,000
40,000
Logging Ban
20,000
0
1988
FIGURE 2.4.2
1989
1990
1991
1992
1993
1994
LOGGED AREA, DIPTEROCARP AND PINE FORESTS, IN THOUSAND

HECTARES, 1988-1994
Logging areas are concentrated largely in Regions 2, 10 and 11. This could be
attributed to the mountainous terrain of these regions.
Consequently, these regions
contributed the highest volume of log produced (see Appendix Table 2.4.2).
Table 2.4.1 shows that the estimated volume of soil loss from the total logged area
which was estimated at 362,493 MT in 1988, the highest recorded level during the four-year
period. Parallel to the decrease in total logged area, the amount of soil loss exhibited a
continuous decline from 1989 to 1991. In 1991, the amount of soil loss was at 137,948 MT,
which is approximately one-third that in 1988.
51
TABLE 2.4.1
TOTAL LOGGED AREA, LOG PRODUCTION AND SOIL EROSION DUE

TO LOGGING, 1988-1994
Total Logged
Area
(000 hectares)
Year
Log Production
(000 cu. M.)
Total Soil loss

due to logging
(In MT)
Erosion Rates
(MT/hectare)
1988
1989
1990
114,145
64,755
42,500
3,809,196
3,168,949
2,502,625
362,519
212,163
144,919
2.00
3.27
3.41
1991
40,250
1,921,595
137,948
3.43
1992
LOG BAN
1993
1994
2.4.3.2
Monetary Estimates
In 1988, the cost of environmental degradation due to logging activity was

estimated at P1.25 billion, went down to P851 million in 1991 (see Table 2.4.2). As expected,
the cost of environmental degradation decreased because of the reduction in total area
logged. The decrease in cost, however, was cushioned by the increase in the average cost of
reforestation activities.
2.4.3.3
In terms of value added, the estimated cost of environmental degradation due to

logging industry in 1988 accounted for 11 percent of the EVA for the sector. Likewise, it
comprised 10 percent of the NVA. From 1988 to 1990, cost of degradation continued to
decrease at an annual rate of 12 percent. The trends of the EVA, depreciation and cost of
environmental degradation are graphically presented in Figure 2.4.3.
TABLE 2.4.2
ENVIRONMENTALLY ADJUSTED NET VALUE ADDED (EVA), IN MILLION

PESOS (AT CURRENT PRICES), 1988-1994
GVA
YEAR
[1]
Depreciation
NVA
[2]
[3]=[1]-[2]
Environmental
Degradation
Cost
EVA
[5]=[3]-[4]
[4]
1988
13,036
654
12,382
1,247
11,135
1989
11,141
521
10,620
772
9,848
1990
8,907
358
8,549
621
7,928
1991
8,541
258
6,283
851
5,432
1992
6,763
374
6,389
6,389
1993
5,570
1,118
4,452
4,452
1994
4,770
957
3,813
3,813
52
14,000
Environmental
Degradation Cost
12,000
Depreciation
10,000
8,000
6,000
4,000
EVA
2,000
0
1988
FIGURE 2.4.3
2.4.4
1989
1990
1991
1992
1993
1994
LOGGING INDUSTRY: EVA, DEPRECIATION AND ENVIRONMENTAL

DEGRADATION, IN MILLION PESOS (AT CURRENT PRICES), 1988-1994
RECOMMENDATIONS
The attempt to estimate the extent of environmental degradation caused by logging

activities has gone through several discussions and consultations with technical experts in the
field. However, further validation of estimates (both in physical and monetary terms) and the
data used (including parameters and assumptions adopted) has to be done to further refine
the preliminary results of the study. Specifically, the following areas have to be addressed:
1.
Data used to derive the environmental cost of degradation due to logging activity
must be regularly generated by concerned data producing agencies. This will provide
a better measure of environmental cost on a year to year basis.
2.
The extent of degradation on other environmental media i.e., land, air, and water
should likewise be estimated to determine the total effect of the activity to the
environment.
53

TOTAL LOGGED AREA BY REGION, IN THOUSAND HECTARES, 1988-1991
Region
Philippines
1988
1989
1990
1991
114,145
64,755
42,500
40,250
1,204
16
68
841
107
21,178
11,811
8,449
5,759
111
82
89
8,331
5,966
5,690
3,314
270
176
26
94
8,256
1,955
548
581
7,798
3,052
1,839
2,195
10
22,054
12,062
5,430
7,633
11
37,744
21,893
15,661
19,710
12
7,562
6,447
4,777
871
CAR
Source: Philippine Forestry Statistics, FMB

LOG PRODUCTION BY REGION, IN THOUSAND CUBIC METERS, 1988-1991
Region
Philippines
CAR
1988
1989
1990
1991
3,809,196
3,168,949
2,502,625
1,921,595
58,943
960
3,227
28,076
5,237
45
II
706,736
577,983
497,537
274,931
III
3,692
3,994
5,238
IV
278,016
291,961
335,041
158,200
9,014
8,590
1,258
VI
11
4,475
VII
VIII
275,527
95,689
32,275
27,730
IX
260,231
149,350
108,309
104,780
735,975
590,305
319,741
364,400
XI
1,259,567
1,071,376
922,212
940,961
XII
252,362
315,521
281,294
41,588
Source: Philippine Forestry Statistics, FMB
54

EROSION RATES IN THE PHILIPPINES BY REGION, IN METRIC TONS PER HECTARE
Woodland
Cut Forest
Uncut Forest
Due to Logging
(1)
(2)=[(1)/2.08] x 2.6
(3)=[(1)/2.08] x 0.6
(4)=(2)-(3)
Philippines
2.08
2.60
0.60
2.00
CAR
2.54
3.18
0.73
2.44
0.53
0.66
0.15
0.51
II
3.85
4.81
1.11
3.70
III
1.24
1.55
0.36
1.19
IV
5.50
6.88
1.59
5.29
0.69
0.86
0.20
0.66
VI
0.74
0.93
0.21
0.71
VII
0.27
0.34
0.08
0.26
VIII
1.70
2.13
0.49
1.63
IX
1.03
1.29
0.30
0.99
3.50
4.38
1.01
3.37
XI
3.62
4.53
1.04
3.48
XII
1.72
2.15
0.50
1.65
Region
Source: Upland Soil Resources of the Philippines, Resource Assessment & Accounting for Soil
Depreciation, Forestry Sector Study of the Philippines, ADB

ESTIMATED MAINTENANCE COST OF LOGGED FOREST, IN PESO PER HECTARE,
1988-1992
Cost per Ha. 4
Index of
Wage
1
Rates
Index of
Wage
2
Rates
Inflation Rates of
3
IPIN
Forestry Sector
1988
100.00
1,986
7,626
3,301
10,927
1989
111.38
2,212
3.68
8,494
3,422
11,916
1990
131.12
2,604
1.25
11,137
3,465
14,602
1991
154.43
3,067
13.60
17,199
3,937
21,135
1992
162.84
3,234
16.80
28,006
4,598
32,604
Year
Labor
Others
Total
Sources:
1
2
derived by dividing the Index of Wage Rates present year value with the base year (1988)
multiplied by 100
2
1995 Yearbook of Labor Statistics, BLES
3
National Accounts, NSCB
4
FMB
55
REFERENCES
Anda, Alex. 1996. Lecture Materials held in August 1996. Natural Resources Development
Corporation.
Asian Development Bank. June 1994. Forestry Sector Study of the Philippines. Pasig City:
Philippines
National Statistical Coordination Board.
Philippines. Makati City, Philippines.
1988 to 1995. National Accounts of the
Fertilizer and Pesticides Authority. 1988 to 1995. Pasig City, Philippines.

Forest Management Bureau. 1988 to 1994. Philippine Forestry Statistics. Department of
Environment and Natural Resources. Quezon City, Philippines
Philippine Case Study of Natural Resource Accounts. June 1996.
Accounting. Makati City: National Statistical Coordination Board.
Natural Resource
Environmental Management Bureau. (nd). Philippine Environment Quality Report 1990

1995. Department of Environment and Natural Resource. Quezon City, Philippines.
56
Tuna Canning
Industry
3.1.1
INTRODUCTION
3.1.1.1
Tuna canning is one of the 10 subsectors under food manufacturing. It comprises

about 7 per cent of the total food manufacturing industry. Tuna canning industry is composed
of enterprises that process and can raw tuna fish meat, either fresh or frozen. There are
several types of canned tuna: flaked, grated, solid packed and/or chunks. The primary product
of the cannery is the solid pack. The Philippine tuna canning industry mainly serves the export
market, with around 95 percent of its total production being sold abroad. Canned tuna has
consistently been one of the countrys top ten exports of processed food, and until recently, it
was one of the top twenty major exports of the Philippines (PDCP Bank Industry Digest,
1993).
3.1.1.2 Scope and Limitations of the Study

This study covers the tuna canning industry, under Philippine Standard Industry
Classification (PSIC) Code 31151, and classified under the broad industry group: Food
Manufacturing sector. The study did not include sardine/mackerel canning. The pollutants
estimated, in both physical and monetary terms, were Particulate Matter (PM) and BOD for air
and water, respectively. Other pollutants generated by the sector such as suspended solids,
nitrogen, oil and grease were not estimated due to data limitations.

Tuna canning involves the process of receiving and sorting, butchering, pre-cooking
and cooling, skinning and loining, packing, retorting, and labeling and warehousing (see
Figure 3.1.1). These processes generate wastes, particularly wastewater contaminated with
fish blood, fish juice and fish oils. Solid wastes generated include rejected fish, fish scraps and
unusable packing materials. Boiler smoke and steam cause air emissions.
3.1.2
SOURCES AND METHODS

Data on volume of tuna fish caught for 1988 to 1994 were gathered from the
Selected Fishery Statistics of the BAS. Data on tuna fish imports were taken from the Foreign
Trade Statistics of the NSO and the export data from the Bureau of Export Trade Promotion
(BETP). Air emission and water effluent factors were taken from the Assessment of Sources
of Air, Water and Land Pollution of the World Health Organization (WHO, 1993). Data on
pollution control devices and their respective capital, and operating plus maintenance costs
were collected from previous studies of ENRAP (Orbeta, 1993).
The GVA of food manufacturing were taken from the National Accounts compilation,
published by the NSCB. The IPIN of other miscellaneous durable equipment and the
Consumer Price Index (CPI) of all items (see Appendix Table 3.1.1) were used to
extrapolate the annual capital cost and annual operating and maintenance cost of pollution
control devices for years 1989-1994, since the only available data was for 1988.
57
INPUT
PROCESS STAGE
WASTE
Raw Tuna
COLD
STORAGE
Blood
Raw Tuna
BUTCHERING
Blood
Butchered Tuna
WASHING
Wastewater
BOD*
Butchered/Waste Tuna
COOKING
Fish juice, steam

PM*
Cooked Tuna
COOLING
Wastewater
BOD*
Cooked Tuna
SKINNING
Skinned Tuna
LOINING
Solids
Cleaned Tuna
PACKING
Soya oil, brine
Canned Tuna
SEAMING
Canned Tuna
WASHING
Canned Tuna
STERILIZING
Canned Tuna
COOLING
Canned Tuna
LABELING
Canned Tuna
WAREHOUSING
Solids, fish heads,

tails, fins
Wastewater
BOD*
Wastewater
BOD*
Source:
Industrial Environment Management
Project (IEMP)
April 1995, MAR Fishing Company, Inc.
Pollution Appraisal Report
* Pollutant estimated in this study, physical
and monetary
FIGURE 3.1.1 TUNA CANNING PROCESS FLOW

58

3.1.2.2.1 Physical Estimation
The data on volume of tuna fish caught from Selected Fishery Statistics of the BAS
was adjusted by 20 percent to represent the under-coverage. Imports of tuna fish were added
to the adjusted volume of tuna fish caught, minus the total exports, to come up with the total
tuna fish supply.
Out of the total supply, 50 percent was assumed to undergo canning processes.
The 50 percent was derived from the estimate in the Food Balance Sheet (FBS, see Appendix
Table 3.1.2). The estimated volume of tuna fish that goes to canning was multiplied by the
emission or effluent factor to generate total emission. More specifically, emissions/effluents of
tuna manufacturing were estimated as:
Effluents to water:
BOD5 (in MT) = Tuna Fish for Canning (in Mt) x 13.4 kg/Mt/1000
Emissions to Air:
PM (in MT) = Tuna Fish for Canning (in Mt) x .05 kg/Mt/1000
3.1.2.2.2 Monetary Estimation

In estimating the cost of controlling pollutants generated by the tuna canning
industry, the sum of annualized capital cost of pollution control equipment per metric ton of
pollutant (AnCC) and the annual cost of operating and maintaining the pollution control device
(AOMC) was multiplied by the emission/effluent. The pollution control devices for tuna
canning are the scrubbers, for controlling PM emissions, and anaerobic facultative ponds, for
the control of BOD5 effluents. In this study, the environmental cost of the tuna industry was
estimated as the sum of PM and BOD5s control cost, which are estimated as follows:
BOD5 Control cost (in Pesos)

= BOD5 (in MT) x [AnCC of Anaerobic Facultative Ponds
Anaerobic Facultative Ponds (in Pesos per MT of pollutant)]
+ AOMC of
PM Control cost (in Pesos)

= PM (in MT) x [AnCC of Scrubber + AOMC of Scrubber (in Pesos per MT of
pollutant)]
The benchmark data on the annualized capital cost and annualized operating and
maintenance costs was for 1988 only. The annualized capital cost for the succeeding years
was extrapolated using the growth trends of the IPIN of other miscellaneous durable
equipment from the National Accounts of the NSCB. On the other hand, the annualized
operating and maintenance costs were extrapolated using the CPI for all Items from the
NSO (see Appendix Table 3.1.1).
59
3.1.3
RESULTS

3.1.3.1.1 Water Effluents
The wastewater pollutants in tuna canning are BOD5, suspended solids (SS),
nitrates (N), and oil and grease (O & G). Due to data limitations, the study estimated only the
BOD5 effluents, both in physical and monetary terms. In physical terms, the average annual
emission of BOD5 was about 2,200 MT (Table 3.1.1). In 1990, the estimated BOD5 emission
reached 2,600 MT due to the increase in volume of tuna fish canned.
TABLE 3.1.1
VOLUME OF TUNA FISH CANNED, BOD5 EFFLUENTS AND PM

EMISSIONS, IN METRIC TONS, 1988-1994
YEAR
PRODUCTION
BOD5
PM
1988
162,920
2,183
8.146
1989
179,865
2,410
8.993
1990
194,047
2,600
9.702
1991
188410
2,525
9.421
1992
156,248
2,094
7.812
1993
117,625
1,576
5.881
1994
154,006
2,064
7.700
3.1.3.1.2 Air Emissions

The fuel burned during fish canning emits mostly particulate matters in air.
However, according to the U.S. Environmental Protection Agency (EPA, 1990), fish canning
processes do not generate significant air pollution. From 1988-1994, the largest emission of
PM was registered in 1990, with an estimated volume of 9.7 MT (see Table 3.1.1). The
resulting trend in the level of emissions was dictated by the volume of fish that goes into
canning, using a constant emission factor, from 1988-1994.

3.1.3.2.1 Water Effluents
The estimated total cost of controlling BOD5 effluents was P 5.3 million and P10
million in 1988 and 1994, respectively (see Table 3.1.2). Due to the increasing trend of prices
used in the estimation, the average cost of controlling BOD5 per MT almost doubled from P
2.4 thousand to P 4.9 thousand in 1988 and 1994, respectively. Thus, the annualized capital
cost and operating and maintenance cost of controlling BOD5 effluents in tuna canning
industry increased at an average of 13.1 percent per annum (see Table 3.1.3).
60
The increase or decrease in the level of pollution (effluent/emission) caused by the

tuna canning industry was dependent on the volume of tuna fish canned and was subjected to
price changes. The absence of any indicator or parameter that relates to the changes in the
levels of effluents/emission limits the analysis of its impact to the environment.
However, future undertakings will consider the acceptable standards used in
assessing environmental quality.
TABLE 3.1.2
Year
TOTAL ENVIRONMENTAL COST: CONTROL OF BOD5 AND PM, IN

THOUSAND PESOS, 1988-1994
Total
Degradation
Cost
Cost Of Controlling BOD5

Using Facultative Ponds
Cost Of Controlling PM
Using Scrubber
Total
AnCC
AOMC
Total
AnCC
AOMC
1988
5,285
5,263
2,851
2,412
22
20
1989
6,279
6,253
3,265
2,988
25
23
1990
7,980
7,947
4,266
3,680
34
31
1991
9,313
9,273
5,032
4,241
39
36
1992
8,162
8,128
4,296
3,832
34
31
1993
7,154
7,122
4,019
3,103
31
29
1994
10,063
10,019
5,588
4,431
43
40
3.1.3.2.2 Air Emissions

The monetary estimates of PM emissions, using the annualized capital cost and
annual operating and maintenance cost of scrubber was small, compared to the monetary
estimates of BOD5 effluents. This was due to the relatively small BOD5 emission factor. In
1988, total cost was only P 22,000. This however increased to P 43,000 in 1994.
3.1.3.3
To get the environmentally adjusted net value added of fish canning industry (Table
3.1.3), the cost of controlling PM and BOD5 were deducted from the net value added. The
NVA of the sector was derived by deducting the estimated depreciation from the GVA.
Environmental cost of tuna canning (BOD5 and PM control cost) amounted to less than 0.07
percent of the NVA of fish canning (see Figure 3.1.2). This may be due to the exclusion of
other fish variety in the process weight used in the study, such as sardines and the nonvaluation of other pollutants of the industry.
Environmental degradation cost of the tuna canning industry from 1988 to 1994
grew at an average of 13 percent per annum. The highest growth in degradation cost was
registered in 1993-1994 posting a growth rate of 41 percent. The second highest growth was
reported in 1989-1990 at 27.09 percent. These trends were due to changes in the process
weight and changes in prices.
61
TABLE 3.1.3
ENVIRONMENTALLY ADJUSTED NET VALUE ADDED (EVA) OF FISH

CANNING INDUSTRY, IN THOUSAND PESOS (AT CURRENT PRICES),
1988-1994
Environmental Cost Of Tuna
Canning
Anaerobic
Facultative
Ponds
Scrubber
EVA Of
Fish
Canning
Industry
[5] = [3]-[4]
5,286
5,263
22
7,533,512
8,291,284
6,279
6,253
25
8,385,005
204,699
7,408,482
7,980
7,947
34
7,400,500
10,227,858
172,186
10,055,672
9,313
9,273
39
10,046,359
1992
10,621,904
153,072
10,468,832
8,162
8,128
34
10,460,870
1993
12,621,521
192,158
12,429,363
7,154
7,122
31
12,422,209
1994
10,801,539
168,641
10,632,898
10,063
10,019
43
10,622,835
GVA Of
Fish
Canning
Industry 1
[1]
Depreciation
[2]
1988
7,798,220
259,423
7,538,797
1989
8,769,344
378,060
1990
7,613,181
1991
Year
NVA Of
Fish
Canning
[3] = [1]-[2]
Total
[4]
GVA for fish canning was estimated using the ratio of fish canning industry to total food industry based
on the ASE/CE. Fish canning GVA includes GVA of canning of other fish (other than tuna).
Environmental
Degradation Cost
12,000,000
10,000,000
8,000,000
Depreciation
6,000,000
EVA
4,000,000
2,000,000
0
1988
FIGURE 3.1.2
1989
1990
1991
1992
1993
1994
FISH
CANNING
INDUSTRY:
EVA,
DEPRECIATION
AND
ENVIRONMENTAL COST, IN THOUSAND PESOS (AT CURRENT
PRICES), 1988-1994
62

COST OF POLLUTION CONTROL DEVICES (PESOS/MT), 1988-1994
ANAEROBIC
FACULTATIVE PONDS
SCRUBBER
YEAR
IPIN OMDE
(1+g)
CPI All Items

(1+g)
Total
Cost
AnCC
AOMC
Total
Cost
AnCC
AOMC
1988
2,411
1,306
1,105
2,741
2,511
230
1989
2,595
1,355
1,240
2,863
2,605
258
1.04
1.12
1990
3,056
1,641
1,415
3,449
3,155
295
1.21
1.14
1991
3,672
1,993
1,679
4,181
3,832
350
1.22
1.19
1992
3,882
2,052
1,830
4,326
3,945
381
1.03
1.09
1993
4,519
2,550
1,969
5,313
4,903
410
1.24
1.08
1994
4,854
2,707
2,147
5,652
5,205
447
1.06
1.09
Note:
OMDE: Other Miscellaneous Durable Equipment
Sources of Data:
Estimation of Direct Environmental Waste Disposal Services (Orbeta, 1995)
CPI, NSO
APPENDIX 3.1.2
VOLUME OF TUNA FISH USED FOR CANNING, IN METRIC TONS, 1988-1994
Year
Fish
caught
(1)
20 percent
(2)=
(1)*(0.2)
Total
Production
Import
Export
(3)= (1) + (2)
(4)=(3)/2
(5)
Total
Supply
Tuna fish
for canning
(6)=(3)+(4)
(7)= (6) * (.5)
-(5)
1988
274,044
54,809
328,853
18,552
21,566
325,839
162,920
1989
302,244
60,449
362,693
6,437
9,401
359,729
179,865
1990
313,371
62,674
376,045
21,672
9,624
388,093
194,047
1991
339,074
67,815
406,889
21,155
51,225
376,819
188,410
1992
285,803
57,161
342,964
19,607
50,075
312,496
156,248
1993
243,306
48,661
291,967
11,579
68,297
235,249
117,625
1994
304,748
60,950
365,698
16,561
74,248
308,011
154,006
Sources of Data:
(1) Selected Fishery Statistics, BAS
(2) 20 percent represents the under-coverage of fish caught.
(4) Foreign Trade Statistics, NSO
(5) Bureau of Export Trade and Promotion
(7) Food Balance Sheet, 50 percent of the total fish production goes to canning
63
REFERENCES
Bureau of Agricultural Statistics. 1988-1994. Selected Fishery Statistics. Quezon City,

Philippines.
Indab, A. L. December 1995. The Tuna Canning Industry. Environmental and Natural
Resources Accounting Project (ENRAP III).
Integrated Environmental Management Project (IEMP). April 1995. Pollution Management
Appraisal Report. . Mar Fishing Company, Inc.
Orbeta, E. M. December 1995. Estimation of Direct Environmental Waste Disposal Services.
Environmental and Natural Resources Accounting Project (ENRAP III).
National Statistical Coordination Board (NSCB). 1988-1994. National Accounts of the
National Statistics Office (NSO).
Philippines.
1988-1994.
Consumer Price Index (CPI). Manila,
Private Development Corporation of the Philippines Bank (PDCP).

Canning Industry. Industry Digest.
1993. The Tuna
World Health Organization (WHO). 1993. Rapid Assessment of Sources of Air, Water and
Land Pollution. Geneva, Switzerland.
64
Textile Industry
Textile Industry
3.2.1
INTRODUCTION
3.2.1.1
The textile industry in the Philippines was established in the 1950s following the
governments import substitution policies. The industry is composed of several subsectors
namely: spinning mills, that engage in the production of yarn from fiber; weaving and knitting
mills that converts the yarns into fabrics; and dyeing, printing and finishing mills which make
the fabric appealing to the consumers. Weaving and knitting mills are the biggest sub-sectors
with 34 weaving mills and 148 knitting firms.
3.2.1.2
This study covers only processed-based pollution (air emission/water effluents), on

PM and BOD. Although a number of pollutants such as Carbon Monoxide (CO), Sulphur
Oxides (SOx) and Nitrogen Oxides (NOx) for air were also identified, it was not included in the
estimation since the above pollutants are fuel-based and not process-based. Hazardous
chemicals such as bleaching and dying agents, and volatile organic compounds (VOC), were
likewise excluded in the estimation of water effluents.
3.2.1.3
Each fiber strand, or yarn, is composed of many fibers twisted together by an

operation called spinning. When two or more yarns are interlaced in the process of weaving
which is carried out on a machine called a loom, a length of cloth is made. However, when a
single continuous length of yarn is looped into a fabric, the operation is called knitting.
Industrially, knitting is also carried out on machines. For natural fibers, such as cotton,
processes involved are blending, carding, combing, spinning and reeling. Figure 3.2.1 shows
an illustrated process of textile manufacturing and the various wastes emanating from it.
During the production process, raw cotton is carded, spooled and warped, slashed
(filled with starch), drawn and knitted into cloth before sending to the finishing mill for final
production. Wastewater is insignificant in this process because no water is introduced in the
system. However, this stage is responsible for most of the air emissions, specifically,
particulate matter. The composition of PM is mostly cottonseeds, barks, and other parts of
the cotton plant not directly used in the textile milling. BOD is produced when the slashing
compound (starch) is used to improve the cloth. Chemical pollutants are also produced when
the cloth is bleached, dyed, and mercerised.
3.2.2
SOURCES AND METHODS
3.2.2.1
Data Sources
Data on the volume of production for 1988 and the data on the annualized capital
and maintenance cost of the treatment methods were taken from Estimation Of Direct
Environmental Waste Disposal Services (Orbeta, 1992). Emission and effluent factors were
taken from the Rapid Assessment of Source of Air, Water and Land Pollution
(Economopolous, 1993).
65
Textile Industry
INPUT
PROCESS STAGE
WASTE
RAW
COTTON
SPINNING
YARN
STORAGE
Sizing Chemicals,
Water
SIZING
Wastewater
WEAVING/
KNITTING
CLOTH
STORAGE
DYEING &
FINISHING
Chemicals & Dye

Auxiliaries, Water
Wastewater
INSPECTION
PACKAGING
Source:
Philippine Textile Research Institute
FIGURE 3.2.1
TEXTILE INDUSTRY PROCESS FLOW
66
Textile Industry
The annual growth rate at constant prices of the GVA of the textile industry from the
National Accounts publication of the NSCB was used to extrapolate the 1988 volume of
production to 1989 to 1994. Data on the annualized capital and operating maintenance cost
was only for 1988. Capital costs for years 1989-1994, the trend of the IPIN of Other
Miscellaneous Durable Equipment was utilized as a growth indicator. The growth of CPI on
All Items from the Price Division of the NSO was likewise used to extrapolate the 1988
operating and maintenance costs to years 1989 to 1994 (see Appendix Table 3.2.1).
3.2.2.2
3.2.2.2.1
Physical Estimation
The 1988 volume of textile production was extrapolated up to 1994 using the
growth rate of the GVA in textile industry at constant 1985 prices (see Appendix Table 3.2.2).
The general formula applied to estimate the air and water pollutants is:
Emission/Effluent = Total Volume of Production of textile x Emission/Effluent Factor
To be more specific, the following equations were used in the study:
Effluents to water:
BOD5 in MT = Volume of textile production in Mt. x 155 kg/Mt/1000.
Emissions to Air:
PM in MT = Volume of textile production in Mt. x 7 kg/Mt/1000
3.2.2.2.2
Monetary Estimation
In estimating the cost incurred in controlling pollutants generated by the textile

industry, the AnCC and AOMC of fabric filter and sludge drying beds were employed. These
two devices were used to control air emission and wastewater discharges caused by the
textile industry, respectively.
The costs of controlling the emission and/or discharges were estimated using the
product of the volume of pollutants and the total capital and operating and maintenance cost
per unit of pollutant.
Hence, in computing for the cost of controlling emissions/effluents such as BOD5
and PM, the following equations were used:
BOD5 Control cost (in Pesos)

= BOD5 (in MT) x [AnCC of Sludge Drying Bed + AOMC of Sludge Drying Bed
(in pesos/MT)]
PM emission control cost (in Pesos)

= PM (in MT) x [AnCC of Fabric Filter + AOMC of Fabric Filter (in Pesos/MT)]
67
Textile Industry
3.2.3
RESULTS
3.2.3.1
Physical Estimates
Using constant effluent and emission factors for the whole period under study
means that trends in the volume of BOD5 and PM were dictated by the level of production of
textile. The resulting volume of emissions and effluents are given in Table 3.2.1. Since the
estimated volume of production of cotton textile had been decreasing from 1988 to 1994, it
follows that both BOD5 and PM pollutants generated by the textile industry was on a
downward trend.
TABLE 3.2.1
3.2.3.2
VOLUME OF PRODUCTION OF COTTON TEXTILE INDUSTRY, BOD5

AND PM, IN METRIC TONS, 1988-1994
Year
Volume of
Production
BOD5
PM
1988
146,300
22,677
1,024
1989
161,530
25,037
1,131
1990
143,729
22,278
1,006
1991
139,532
21,628
977
1992
122,761
19,028
859
1993
121,864
18,889
853
1994
112,859
17,493
790
Monetary Estimates
The cost of controlling pollution in 1988 was estimated at P 73.4 million, the lowest
ever recorded during the reference period (see Table 3.2.2). The highest cost was recorded
during the 1993-1994 period at P 113 million.
On the average, the share of degradation cost (PM + BOD5) of the cotton textile
industry to the NVA of the total textile industry was pegged at 1.15 percent from 1988-1994
(see Table 3.2.3 and Figure 3.2.2).
The relatively small share of the degradation cost to total NVA of the textile industry
may be attributed to the non-valuation of other textile industries, pollution control cost and
non-estimation of other pollutants caused by the cotton textile industries.
68
Textile Industry
TABLE 3.2.2 ENVIRONMENTAL DEGRADATION COST FOR BOD5 AND PM, IN

Total
Degradation
Cost
Year
BOD5 Control Cost using

Sludge Drying Bed
PM Control Cost using

Fabric Filter
Total
AnCC
AOMC
Total
AnCC
AOMC
1988
73,384
70,616
29,344
41,272
2,768
2,532
236
1989
87,933
84,739
33,613
51,127
3,194
2,902
292
1990
91,584
88,162
36,223
51,939
3,422
3,126
296
1991
106,594
102,535
42,711
59,825
4,029
3,687
342
1992
99,698
96,033
38,686
57,346
3,665
3,338
327
1993
113,461
108,992
47,732
61,260
4,469
4,119
350
1994
113,192
108,788
46,927
61,861
4,403
4,050
353
3.2.3.3
At current prices, the EVA of the textile industry has increased from 11 percent to
15 percent during the years covered. The share of environmental degradation cost is directly
proportional to the value added generated through time (see Table 3.2.3).
TABLE 3.2.3
ENVIRONMENTALLY ADJUSTED NET VALUE ADDED (EVA) OF

TEXTILE INDUSTRY, IN THOUSAND PESOS (AT CURRENT PRICES),
1988-1994
Total Degradation Cost of
Cotton Textile Industry
Year
GVA
Depreciation
NVA of
Textile
TOTAL
BOD
Control
Cost
PM
Control
Cost
EVA
1988
7,754,504
1,226,724
6,527,780
73,384
70,616
2,768
6,454,396
1989
8,753,740
1,246,135
7,507,605
87,933
84,739
3,194
7,419,672
1990
9,204,037
879,651
8,324,386
91,584
88,162
3,422
8,232,802
1991
10,383,858
1,101,510
9,282,348
106,594
102,535
4,029
9,175,784
1992
10,094,157
811,393
9,282,764
99,698
96,033
3,665
9,183,066
1993
10,468,022
888,951
9,579,071
113,461
108,992
4,469
9,465,610
1994
9,955,587
866,982
9,088,605
113,192
108,788
4,403
8,975,413
69
Textile Industry
Environmental
Degradation Cost
12,000,000
10,000,000
8,000,000
Depreciation
6,000,000
EVA
4,000,000
2,000,000
0
1988
FIGURE 3.2.2
3.2.4
1989
1990
1991
1992
1993
1994
TEXTILE COTTON INDUSTRY: EVA, DEPRECIATION AND

ENVIRONMENTAL COST (AT CURRENT PRICES), 1988-1994
RECOMMENDATION
The data on the AnCC and AOMC relate only to one year (1988). There is a need
to establish another benchmark level and not just extrapolate the existing ones using trend
indicators. Moreover, data on other pollutants and their pollution control technology, i.e. VOC,
etc. together with their respective cost should be established.
70
Textile Industry

COST OF POLLUTION CONTROL DEVICES, PESOS/MT, 1988-1994
FABRIC FILTER
SLUDGE DRYING BED
YEAR
IPIN OMDE
CPI - All
Items
(1 + g)
(1 + g)
Total
Cost
AnCC
AOMC
Total
Cost
AnCC
AOMC
1988
2,703
2,473
230
3,114
1,294
1,820
1989
2,824
2,566
258
3,385
1,343
2,042
1.04
1.12
1990
3,402
3,107
295
3,957
1,626
2,331
1.21
1.14
1991
4,123
3,774
350
4,741
1,975
2,766
1.22
1.19
1992
4,266
3,885
381
5,047
2,033
3,014
1.03
1.09
1993
5,239
4,829
410
5,770
2,527
3,243
1.24
1.08
1994
5,573
5,126
447
6,219
2,682
3,536
1.06
1.09
Sources of Data :
CPI, NSO

VOLUME OF PRODUCTION IN COTTON TEXTILE INDUSTRY, IN METRIC TONS, AND
GVA GROWTH RATE (AT CONSTANT PRICES), 1988-1994
YEAR
Volume of
Production
GVA Growth Rate

2/
(%)
1988
146,300
1989
161,530
10.41
1990
143,729
-11.02
1991
139,532
-2.92
1992
122,760
-12.02
1993
121,864
-0.73
1994
112,858
-7.39
1/
Source of Data:
1/
ENRAP Phase III
2/
71
Textile Industry
REFERENCES
Adrosko, Rita J. 1984. Journal of Textile Report. 2nd edition. Vol 7.

Economopolous, A. P. 1993. Assessment of Air, Water, and Land Pollution. World Health
Organization (WHO). Geneva, Switzerland.
Environmental Management Bureau (EMB). 1990. Air Pollution Emission Inventory for
Metro Manila. DENR. Quezon City, Philippines.
National Statistical Coordination Board (NSCB). 1988 - 1994. National Accounts of the
Philippines.
National Statistics Office (NSO). 1988 - 1994. Consumer Price Index.
Nortup, Harold J. 1970. Journal of the American Association of Textile Chemist and
Colorist. 2nd edition. Volume 2.
Taylor, Gail. 1982. Pollution Control. 2 edition. Volume 7: (46 53).
72
Leather Tanning
Leather Tanning
3.3.1
INTRODUCTION
3.3.1.1
Tanning industry in the Philippines is composed of approximately 70-100

establishments, mostly located in the province of Bulacan particularly in the town of
Meycauyan. It employs around 3,800 people. Most of these tanneries are backyard-operated
and very few can be classified as large-scale. The leather tanning industry has an estimated
aggregate annual rated capacity of 46.5 million square feet of finished leather. The tanning
industry is very pollutive due to the vast quantities of wastewater generated during the
process. Moreover, most tanneries have inadequate water treatment facilities or do not treat
their effluents at all.
3.3.1.2
The study on leather tanning only accounted for the BOD generated in water
effluents of the beamhouse and tanyard processes of the industry in as much as BOD
constitutes the most significant pollutant in the tanning process.
3.3.1.3
Tanning is the process of converting animal hides to leather. There are three (3)
major stages in the tanning process (see Figure 3.3.1):
a) beamhouse operations wherein hides are cleaned and conditioned to ensure
their correct moisture content;
b) tanyard operations where tanning proper takes place, and
c) finishing operations where tanned hides are given the desired color, texture
and thickness
In the beamhouse operations, animal hides are soaked, washed, unhaired, limed
and fleshed. Water is the major input in this process. It is estimated that around 61 kilograms
(kg) of water are needed for every kg. of raw hide processed. The process generates BOD,
chemical oxygen demand (COD), suspended solids and dissolved solids (DS). The
generation of BOD, which is the measure of the amount of oxygen required to completely
oxidize a quantity of organic matter by biological process, is the most significant adverse
effect of beamhouse operations.
The tanyard process, on the other hand, involves deliming and bating wherein salts
of ammonium chloride or ammonium sulfate, water, and various enzymes are used, thereby
producing discharges of BOD, COD, DS, sulfuric acid (H2S), and compounds of ammonia.
After this, acid and burn solutions are used in the pickling. The same pollutants are produced
during this process. Chrome, vegetable tans and water are used as input in actual tanning.
Waste products generated during actual tanning are spent chrome tans. The tanyard process
then proceeds with sammying, splitting and shaving where residual chrome tans and split and
shaved matters are produced as wastes.
The finishing stage involves retanning, dyeing, fat-liquoring, drying and finishing.
This stage is considered the least pollutive of all tanning activities. The beamhouse
operations, which account for 70-90 percent of the total effluents, generate the biggest bulk of
effluents in the tanning process.
73
Leather Tanning
INPUT
PROCESS STAGE
WASTE
CURED HIDES
Water
Lime, sodium sulfide,

water
SOAKING & WASHING
BOD*, COD, SS, DS

Salts, organic-N
UNHAIRING & LIMING
BOD*, COD, SS, DS,

alkalinity, sulfides, organic-N,
ammonia-N
Hair, lime and sludge
containing organic matter
FLESHING
BOD*, COD, SS, DS,

alkalinity, sulfides
Fleshings
DELIMING & BATING
BOD*, COD, SS, DS,

ammonia-N, H S, NH
Beamhouse
Salts of ammonium
chloride or sulfate,
water, enzyme
Acid and brine

solutions
PICKLING
BOD*, COD, SS, acidity,

salts
Chrome/vegetable tans,
water
TANNING
Spent chrome tans
SAMMYING
SPLITTING & SHAVING
Tanyard
RETANNING, DYEING &

FAT LIQUORING
Vegetable tans,
syntans, dyes
DRYING & FINISHING
Residual chrome tans
Split & shaved matter

(chrome-containing organic
matter)
BOD, COD, DS, spent

vegetable tans, spent
syntans, fat
Solvents, formaldehyde,
remaining finishing agents
Source:
Mendoza, 1996
LEATHER
Finishing
FIGURE 3.3.1

LEATHER TANNING PROCESS FLOW
74
Leather Tanning
3.3.1.4
Treatment Process of Pollutants
The leather tanning industry employs end-of-pipe technology in treating

pollutants/effluents. The end-of-pipe wastewater treatment for tannery effluents consists of
four stages:
1) screening or preliminary treatment removes large objects in order to prevent
damage to subsequent treatment process and equipments by the use of a
hand-cleaned bar rack.
2) flow equalization uses an equalization basin to balance the diurnal and
seasonal fluctuations in the quantity and quality of wastewater flowing into the
treatment facilities thus, preventing damage to these facilities.
3) upflow anaerobic sludge blanket (UASB) is an application of the principles of
fermentation process, wherein several groups of anaerobic and facultative
organisms assimilate and break down organic matter primarily into carbon
dioxide and methane.
4) trickling filter process consists of a fixed bed of rock media over which
wastewater is applied for aerobic biological treatment.
3.3.2
SOURCES AND METHODS
3.3.2.1
Data Sources
The basic information used in the estimation was derived from the results of the
survey and study on the Meycauayan tanning industry conducted by Mendoza in 1996. In the
study, 17 tanneries were sampled employing the stratified random sampling technique, using
the size of the tanneries as strata, and the list of establishments from Philippine Council for
Agriculture, Forestry and Natural Resources, Research and Development (PCARRD) as the
frame. The survey enumerated 40-57 percent of small and medium tanneries and tried to
cover all large tanneries. However, the data for some large tanneries were not collected
because of the unavailability of respondents at the time of the conduct of the survey.
Other sources of data were the Annual Survey of Establishments (ASE), Census of
Establishments (CE), and the National Accounts of the Philippines published by the NSCB.
3.3.2.2
3.3.2.2.1
Physical Estimation
The parameters used in the physical estimates of BOD discharges were the volume
of hide treated and volume of wastewater generated during beamhouse and tanyard
processes. The computed BOD load in the survey study conducted by Mendoza (1996) was
used as basic data for estimating the BOD load for the leather tanning industry. The weighted
average BOD load, by size of tannery, generated during beamhouse and tanyard operations
was derived using the average BOD loads per type of operation. On the other hand, the
volume of wastewater flow, by size of tannery, was used as weights (refer to Appendix 3.3.1).
75
Leather Tanning
The volume of hide production for 1988-1993 was extrapolated using the 1994 data
on hide production by applying the growth rate of the value of output of the leather industry.
The growth trends by size of tannery were calculated, using the results of ASE/CE and the
IPIN of the GVA for leather manufacturing. This is then deflated using the IPIN of the GVA of
leather industry. The trends of the deflated value of output were assumed to approximate the
movement of the volume of beamhouse and tanyard production of the leather tanning industry
from 1988 to 1993. Both small and medium tanneries adopted the growth trends of the small
establishments from ASE/CE, while the growth rates of the value of output of the large
establishments were used for the extrapolation of beamhouse and tanyard production of large
tanneries.
The estimated hide production both for beamhouse and tanyard and the
wastewater ratio obtained from the study conducted by Mendoza (1996) were used to derive
the estimated wastewater flow, that is,
Wastewater flow (li) = Hide production (MT) x wastewater ratios (liter per MT)
where,
wastewater ratio = is the amount of wastewater for every MT of hide processed by
tanneries
TABLE 3.3.1
AVERAGE PRODUCTION OF LEATHER, WASTEWATER FLOW RATIO

AND BOD LOAD, BY SIZE OF TANNERIES, 1994
Beamhouse
Size
Large
Medium
Small
Tanyard
Average
Production
of Leather
(MT/year)
Wastewater
flow ratio
(liters/kg)
BOD
Load
(mg/li)
3,314
14,258.2
6.842
1,737
7.561
3,804
1,612.0
6.624
2,243
4.289
3,754
526.2
3.427
2,935
Average
Production
of Leather
(MT/year)
Wastewater
flow ratio
(liters/kg)
17,679.8
8.707
1,846.9
698.7
BOD
Load
(mg/li)
Source: Mendoza, 1996
The ratio of wastewater flow per unit of beamhouse/tanyard production, derived

from Table 3.3.1, was then multiplied by the computed volume of hides in beamhouse and
tanyard processes to get the estimated wastewater flow. These are then multiplied by BOD
load per liter to derive total BOD discharges, that is,
BOD Discharges in MT = Wastewater flow in liter x BOD Load / liter
3.3.2.2.2
Monetary Estimation
The average cost of treating a liter of wastewater in beamhouse and tanyard

production for 1994 (Table 3.3.2) was taken from the study of Mendoza (1996). These are
translated in terms of cost of treatment per unit of BOD. The costs are then extrapolated back
to 1988 using growth trends in the IPIN of other miscellaneous durable equipment (see
Appendix Table 3.3.1).
Total cost of treating wastes from beamhouse and tanyard processes of the leather
tanning industry were derived by multiplying the average cost of treating wastewater and the
estimated wastewater flow from both the beamhouse and the tanyard processes. All
discharges were valued on the assumption that the carrying capacity of the Meycauyan River,
where wastewater is discharged, has already been exceeded.
76
Leather Tanning
TABLE 3.3.2
AVERAGE COST OF TREATING WASTEWATER, IN PESOS, 1994
Size
Cost per Liter

of Wastewater
Cost per kg. of BOD

Beamhouse
Tanyard
Large
0.02
6.03
11.51
Medium
0.04
10.52
17.83
Small
0.13
34.63
44.29
3.3.3
RESULTS
3.3.3.1
Physical Estimates
Table 3.3.3 shows the estimated BOD in wastewater discharges from beamhouse
and tanyard production of the leather tanning industry from 1988 to 1994. Three-fourths of
the total BOD is discharged through the beamhouse process. Large tanneries account for the
highest contribution to BOD discharge.
TABLE 3.3.3
YEAR
ESTIMATED BOD IN WASTEWATER DISCHARGES OF BEAMHOUSE

AND TANNERIES, BY SIZE, IN METRIC TONS, 1988-1994
BEAMHOUSE
TOTAL
Total
Large
Medium
TANNERIES
Small
Total
Large
Medium
Small
1988
716.2
519.3
319.4
164.9
34.9
196.9
106.1
74.4
16.4
1989
881.3
657.5
613.7
36.1
7.7
223.8
203.9
16.3
3.6
1990
954.2
713.0
677.3
29.4
6.2
241.2
225.0
13.2
2.9
1991
1,365.3
1,021.0
979.2
34.5
7.3
344.3
325.3
15.6
3.4
1992
1,427.5
1,066.5
1,011.5
45.4
9.6
361.0
336.0
20.5
4.5
1993
694.1
517.4
478.3
32.3
6.8
176.6
158.9
14.6
3.2
1994
773.2
574.5
510.2
53.1
11.3
198.7
169.5
24.0
5.3
From 1988 to 1992, there was a steady increase in BOD discharges of large
tanneries. There was a decrease in the level of discharges in 1993 primarily because of the
decline in production. However, an increase in BOD discharge was again recorded in 1994.
The highest level of BOD discharge was recorded in 1991 and 1992 with an average annual
discharge of 1,396 MT.
The BOD generated by small and medium-sized tanneries dropped considerably
from its 1988 level. In effect the share of small and medium-sized tanneries to total BOD
dropped from 40.6 percent in 1988 to 12.1 percent in 1994.
77
Leather Tanning
3.3.3.2
Monetary Estimates
The unit cost of treating wastewater discharges is higher during the tanyard
process than in the beamhouse process (see Table 3.3.2). This is due to higher BOD
concentration of wastewater generated in the tanyard process. However, because of the
higher volume of wastewater generated in the beamhouse process, its total treatment cost is
higher (Table 3.3.4). Total maintenance costs amounted to P 6.6 million in 1994, up from the
P 3.9 million in 1988.
TABLE 3.3.4
TOTAL
YEAR
1988
1989
1990
1991
1992
1993
1994
TOTAL COST OF TREATING WASTEWATER IN LEATHER TANNING

INDUSTRY, IN THOUSAND PESOS, 1988-1994
BEAMHOUSE
TANNERIES
Total
Large
Medium
Small
Total
Large
Medium
Small
Total
Large
Medium
Small
3,935
3,579
4,591
7,881
8,605
5,366
6,640
1,521
3,030
4,050
7,110
7,562
4,444
5,030
1,478
336
331
472
639
565
986
936
213
210
299
404
368
624
2,353
2,178
2,798
4,806
5,243
3,263
4,027
931
1,855
2,479
4,352
4,629
2,720
3,079
838
190
188
267
362
320
559
584
133
131
187
252
223
390
1,582
1,401
1,793
3,075
3,362
2,103
2,613
590
1,176
1,571
2,758
2,933
1,724
1,951
641
146
144
205
277
245
427
352
80
79
112
152
134
234
3.3.3.3
At current prices, the EVA of the leather tanning industry is about 8.2 percent
to18.7 percent lower than the NVA of the sector during the years covered. The ratio of EVA
to NVA has decreased from 1988 to 1994.
Conversely, the share on environment
degradation cost relative to the value added generated has increased through time (Figure
3.3.2).
TABLE 3.3.5
YEAR

THOUSAND PESOS (AT CURRENT PRICES), 1988-1994
GVA
[1]
DEPRECIATION
NVA
[2]
[3]=[1]-[2]
ENVIRONMENTAL
COST
[4]
(EVA),
IN
EVA
[5]=[3]-[4]
1988
43,248
2,120
41,128
3,935
37,193
1989
45,281
1.653
43,628
3,579
40,049
1990
43,361
1,751
41,610
4,591
37,019
1991
57.492
2,276
55,216
7,881
47,335
1992
63,798
1,530
62,268
8,605
53,663
1993
42,592
1,081
41,511
5,366
36,145
1994
36,527
949
35,578
6,640
28,938
Derived by multiplying the GVA of the leather industry by the share in output of the leather tanning to
total leather industry.
Source:
GVA: National Accounts, NSCB
Shares: ASE/CE, NSO
78
Leather Tanning
70,000
Environmental
Degradation Cost
60,000
50,000
40,000
30,000
Depreciation
EVA
20,000
10,000
0
1988
1989
FIGURE 3.3.2
3.3.4
1990
1991
1992
1993
1994
LEATHER TANNING INDUSTRY: EVA, DEPRECIATION AND

PRICES), 1988-1994
RECOMMENDATIONS
As data on actual production, BOD load, and cost of treatment relate only to one
year (1994), there is a need in the future to establish another benchmark level and not just
extrapolate the existing ones using trend indicators. It may also be worthwhile to determine
the amount of other pollutants, in addition to BOD, that might be generated by the industry.
Moreover, the toxicity of the discharges in the tanyard process should be investigated.
79
Leather Tanning

BEAMHOUSE AND TANYARD PRODUCTION, WASTEWATER FLOW AND BOD LOAD
OF SAMPLE TANNERIES BY SIZE OF TANNERY, 1994
Number of
Sample
Tannery
Beamhouse
Production
(Kg. Hides/mo.)
Large
368,329
3,207,038
3,314
Medium
76,953
581,832
3,804
Small/Cottage
23,291
99,894
3,754
Tannery
Number of
Sample
Tannery
Tanyard
Production
(Kg. Hides/mo.)
Large
297,045
2,032,489
1,737
Medium
67,167
444,934
2,243
Small/Cottage
17,540
60,117
2,935
Tannery
Beamhouse
Wastewater Flow
(Liters/mo.)
Tanyard
Wastewater Flow
(Liters/mo.)
BOD
Load/Tannery
(mg./Liter)
BOD
Load/Tannery
(mg./Liter)

COST OF WASTEWATER TREATMENT (PESOS/Kg), 1988-1994
Beamhouse Process
Year
Large
Medium
Small/
Cottage
Tanyard Process
Large
Medium
IPIN
OMDE
OMDE
Small/
Cottage (1985=100) (1994=100)
1988
2.91
5.08
16.72
5.56
8.61
21.39
103.90
0.48
1989
3.02
5.27
17.34
5.76
8.93
22.18
107.75
0.50
1990
3.66
6.38
21.00
6.98
10.81
26.86
130.49
0.61
1991
4.44
7.75
25.50
8.48
13.13
32.62
158.45
0.74
1992
4.57
7.98
26.26
8.73
13.52
33.58
163.13
0.76
1993
5.68
9.91
32.63
10.85
16.80
41.74
202.75
0.94
1994
6.03
10.52
34.63
11.51
17.83
44.29
215.15
1.00
80
Leather Tanning

BEAMHOUSE PRODUCTION, WASTEWATER FLOW AND BOD LOAD (BLOWN UP
DATA), BY SIZE OF TANNERY, 1994
Beamhouse
Production
(Kg. of
Hides/Year)
Tannery
TOTAL
Wastewater
Flow
(Liters/Year)
20,225,394
170,898,612
Beamhouse
BOD Load
(mg./Liter)
Total BOD
Discharges in
Beamhouse
(Kg.)
574,517
Large
25%
17,679,792
153,937,824
3,314
510,150
Medium
50%
1,846,872
13,963,968
3,804
53,115
Small/Cottage
40%
698,730
2,996,820
3,754
11,251

TANYARD PRODUCTION, WASTEWATER FLOW AND BOD LOAD (BLOWN-UP DATA),
BY SIZE OF TANNERY, 1994
Tanyard
Production
(Kg. of
Hides/Year)
Tannery
TOTAL
Wastewater
Flow
(Liters/Year)
16,396,368
110,041,398
Tanyard
BOD Load
(mg./Liter)
Total BOD
Discharges in
Tanyard (Kg.)
198,706
Large
25%
14,258,160
97,559,472
1,737
169,462
Medium
50%
1,612,008
10,678,416
2,243
23,950
Small/Cottage
40%
526,200
1,803,510
2,935
5,294
81
Leather Tanning

ESTIMATION OF PRODUCTION TRENDS, 1988-1994
YEAR
OUTPUT
(at Current Prices)
Large
1988
OUTPUT
(at constant 1994 prices)
IPIN
Small/
Cottage
GVA
GVA
(1985=100)
(1994=100)
44,808
128.81
0.89
105,810
Growth
Rate
Large
119,085
1989
206,923
9,995
131.11
0.90
228,797
1990
231,838
8,263
133.11
0.92
252,495
1991
379,296
10,972
150.63
1.04
365,044
1992
408,522
15,033
157.05
1.08
377,099
1993
204,979
11,352
166.67
1.15
178,291
1994
190,187
16,240
144.97
1.00
190,187
Small/
Cottage
Growth
Rate
50,429
92.1
percent
10.4
percent
44.6
percent
3.3
percent
-52.7
percent
6.7
percent
11,052
8,999
10,560
13,877
9,874
16,240
-78.1
percent
-18.6
percent
17.3
percent
31.4
percent
-28.8
percent
64.5
percent

ESTIMATED HIDE PRODUCTION OF LEATHER TANNERIES, IN THOUSAND
KILOGRAMS, 1988-1994
Beamhouse Production of Hides

YEAR
Total
Large
Medium
Small/
Cottage
Tanyard Production of Hide

Total
Large
Medium
Small/
Cottage
1988
18,975
11,070
5,735
2,170
15,567
8,928
5,006
1,634
1989
23,001
21,269
1,257
475
18,608
17,153
1,097
358
1990
24,883
23,472
1,023
387
20,114
18,929
893
292
1991
35,590
33,934
1,201
454
28,757
27,367
1,048
342
1992
37,230
35,055
1,578
597
30,098
28,271
1,377
450
1993
18,122
16,574
1,123
425
14,666
13,366
980
320
1994
20,225
17,680
1,847
699
16,396
14,258
1,612
526
82
Leather Tanning
APPENDIX 3.3.7
ESTIMATION OF LEATHER PRODUCTION AND PROCESS RATE, 1994
Estimates of BOD discharges for 1994 were built up using the basic information
derived from the survey study of Mendoza (1996). Parameters from the survey, the total
volume of hides that passed through the beamhouse and tanyard processes, as well as the
wastewater generated for each process were totaled by tannery size. The average
beamhouse and tanyard BOD load, by size of tannery, was then derived as the weighted
average of the beamhouse and tanyard BOD load of the responding tanneries, using the
volume of wastewater flow, by tannery, as weights (see Appendix Table 3.3.2).
The derived beamhouse and tanyard production and the corresponding wastewater
flow, for each tannery size were then blown-up to get an approximation of the countrys total
beamhouse and tanyard production and the corresponding wastewater flow. Adjustments
were based on a 25, 50 and 40 percent coverage ratio for large, medium and small-sized
tanneries, respectively, in the survey study. For large tanneries, the 25 percent coverage
ratio was computed by getting the ratio of the five responding establishments to the total
production capacity of the eleven large establishments included in the frame. For the mediumsized tanneries, it was taken that the samples constitute 50 percent of the total number of
tanneries. On the other hand, for the small/cottage tanneries, the lower 40 percent coverage
was adopted on the assumption that the samples deleted from the frame (because their sizes
could not be identified) are actually small tanneries. These blown-up figures for the
beamhouse and tanyard production, and wastewater generated represented the benchmark
estimate for 1994. The results are presented in Appendix Table 3.3.3 and Appendix Table
3.3.4.
APPENDIX 3.3.8
EXTRAPOLATION OF HIDE PRODUCTION
The 1994 production of hides was extrapolated back to years 1988 to 1993 using the
growth of value of output of the leather industry at constant prices. The values of production
at current prices for small and large establishments were taken from the results of the ASE
and the CE. These were then deflated using the IPIN of the GVA of leather industry as taken
from the National Accounts (Refer to Appendix Table 3.3.5). The trends of the deflated value
of output were assumed to approximate the movement of the volume of beamhouse and
tanyard production of the leather tanning industry from 1988 to 1993 (see Appendix Table
3.3.6).
Both small and medium tanneries adopted the growth trends of the small
establishments from ASE/CE, while the growth rates of the value of output of the large
establishments were used for the extrapolation of beamhouse and tanyard production of large
tanneries.
Production t-1 = Production t / (K output t / K output t-1)
where:
Production = volume of hides produced by leather tanneries
K output
= output at constant 1994 prices (estimated as value of output at current

prices deflated by corresponding IPIN of GVA of leather
manufacturing, rebased to 1994).
=
ASE/CE output
IPIN t 94 =100
IPIN t94=100 =
IPIN t 85=100
IPIN 1994 85=100
83
Leather Tanning
REFERENCES
Board of Investments. (undated). Leathergoods Industry. (computer file). Department of

Trade and Industry, Makati City, Philippines.
Chupungco, Jose Benedicto A. December 1995. The Leather Tanning Industry. ENRAPPHASE III.
Mendoza, M. N.
March 1996. An
Meycauyan Tanning Industry.
Ex-Ante Analysis of a Water Pollution Tax for the
National Statistical Coordination Board (NSCB). 1988 -1994.

National Accounts of the
National Statistics Office (NSO). 1989 - 1993. Annual Survey of Establishments. Manila,
Philippines.
National Statistics Office (NSO).
Philippines.
1988-1994.
Census of Establishments. Manila,
United Nations (UN). 1993. Integrated Environmental and Economic Accounting. Interim
version, Series F. No. 61.
84
Paint Manufacturing
Paint Manufacturing
3.4.1
INTRODUCTION

The paint manufacturing industry in the Philippines was established in 1911. This
particular subsector comprises establishments primarily engaged in the manufacture of paints
(in paste and ready mixed form), varnishes, lacquers, enamels, putties, wood fillers, and
sealers, paint and varnish removers, and allied paint products like concrete neutralizers,
multicoated paints, rust inhibitors and others. The estimated market for the paint industry in
1994 was valued at approximately P 5.6 billion. Of this, 80 percent goes to architectural and
20 percent goes into industrial use. Geographically, 70 percent of the market is in Metro
Manila and the rest of Luzon while 30 percent is in the Visayas and Mindanao.
3.4.1.2
Paint manufacturing industry is part of the basic chemical industry. This study
covers establishments under the PSIC 35211 - Manufacture of Paint. Specifically, the study
measures the air emissions of particulate matter (PM10) and VOC generated as a result of
the volatility of the raw materials used in the production of paints. However, monetary
valuation of VOC is not estimated due to the absence of information regarding its control
technology. What is estimated in this study is the maintenance cost of controlling PM10
emissions through the use of fabric filter. No water effluents are included in the study.

Paint making is essentially the art of reproducibly dispersing pigments in vehicles
and duplicating the color and properties of a finished paint to a given standard. Paints are
composed of three basic ingredients: pigments, binders or vehicles, and solvents. Pigments
may either be natural or synthetic compounds whose amount in paint varies by weight. The
liquid portion known as the vehicle consists of resins, drying oils, or both, and a solvent.
Paint manufacturing processes are of two types: solvent-based and water-based.
The production of solvent-based paints begins by mixing resins, dry pigments and/or dry predispersed pigments and pigment extenders in a high-speed mixer. During this operation,
solvents and plasticizers are also added (see Figure 3.4.1). The water-based paint process is
very similar to the solvent-based process. The only difference is the substitution of water for
solvent and the sequencing of material additions. Preparations of water-based paints begin by
mixing water, ammonia, and a dispersant in a mixer.
The two major types of air emissions that occur during the production process of
paint are PM10 and VOC. Particulate matter is emitted from the pigment dust while VOC is
emitted from the bulk storage of resins and solvents and from their use in open processing
equipments such as mix tanks.
85
Paint Manufacturing
INPUT
PROCESS STAGE
Oils, Resins and

Pigments
Solvents,
Tinting Pigments
WASTE
MIXING
PM10*
MILLING
PM10*
MIXING
PM10*
TINTING &
THINNING
VOC**
STRAINING
VOC**
FILLING &
PACKAGING
VOC**
Source:
Dutch Boy Philippines
* Pollutant estimated in this study, physical and monetary
** Pollutant estimated in this study, physical only
FIGURE 3.4.1 PAINT MANUFACTURING PROCESS FLOW
86
Paint Manufacturing
3.4.2
SOURCES AND METHODS

Value of production was taken from the ASE. The wholesale prices of paint used
were from the NSO. Emission factors based on Assessment of Sources of Air, Water and
Land Pollution published by the WHO (1993) were used to derive the air pollution loads
including PM10 and VOC. Cost of treating PM10 was obtained from the study of ENRAP
Phase III (Orbeta, 1993). Finally, GVA was derived from the National Accounts published by
the NSCB.

The volume of production was derived by dividing the value of production by the
price of paint per kilo (see Appendix Table 3.4.1). Air pollution discharges were estimated
using the general formula:
Emission = Volume of production x emission factor
More specifically, emissions to air were estimated as:
VOC (In MT) = Volume of Paint Production (In Mt) x 15 kg/Mt/1000
PM10 (In MT) = Volume of Paint Production (In Mt) x 5 kg/Mt/1000

Environmental cost of the paint industry was derived by getting the AnCC plus
AOMC of the air pollutant treatment, e.g., fabric filter, multiplied by the air pollution discharges
of the industry. A fabric filter or a baghouse is used for particle removal. The unit may consist
of several hundred-filter bags.
To be more specific, environmental cost (in pesos) was estimated as:
Environmental cost = PM in MT x (AnCC of Fabric Filter + AOMC of Fabric Filter in
pesos per MT)
The AnCC and the AOMC of fabric filter were used to extrapolate the 1989-1994
costs using the growth rate of the IPIN of other miscellaneous durable equipment and the
growth rate of the CPI for all items (see Appendix Table 3.4.2).
3.4.3
RESULTS

The paint industry contributes solid wastes and air pollution to the environment. Air
emission is the most obvious pollutant that the paint industry emits to the environment. The
two major types of air emissions that are discharged in the production of paint industry are
PM10 and VOC. Table 3.4.1 shows the PM10 and VOC discharges by the paint industry for
1988 to 1994.
87
Paint Manufacturing
TABLE 3.4.1
VOLUME OF PRODUCTION, VOC AND PM10 EMISSIONS, IN METRIC

TONS AND PM CONTROL COST, IN THOUSAND PESOS, 1988-1994
VOLUME OF
PRODUCTION
YEAR
PM10 CONTROL COST

VOC
PM10
TOTAL
AnCC
AOMC
1988
78,722
1,182
394
1,065
974
91
1989
96,825
1,452
484
1,367
1,242
125
1990
93,044
1,396
465
1,582
1,445
137
1991
80,430
1,206
402
1,658
1,517
141
1992
89,614
1,344
448
1,911
1,741
171
1993
127,649
1,915
638
3,342
3,081
261
1994
131,415
1,971
657
3,662
3,368
294
Note:
AnCC:
AOMC:
Annualized Capital Cost

Annualized Operating and Maintenance Cost
VOC accounts for 75 percent of pollutants emitted by paint manufacturing industries

from 1988 to 1994. The period between 1993 to 1994 showed the highest level of VOC and
PM10 emissions mainly due to an increasing trend in paint production for the same period.

The environmental cost of PM discharges in 1988 was estimated at P 1.1 million
(Table 3.4.1). This increased to P 3.7 million in 1994 as paint production rapidly increased.
Although VOC accounted for the bulk of pollutants emitted by paint manufacturing industries,
the environmental cost of controlling it was not covered due to lack of information regarding its
control.

The EVA of paint industry is shown in Table 3.4.2 and in Figure 3.4.2. It is noted that
environmental cost, as defined in this study, was almost negligible at about 0.2 percent of the
NVA of the paint industry. Hence, EVA of the paint industry at current prices has the same
trend as its GVA.
3.4.4
RECOMMENDATIONS
The data on the AnCC and AOMC relate only to one year, 1988. There is a need to
establish another benchmark level and not just extrapolate the existing ones using trend
indicators. Moreover, data on pollution control technology for VOC and their respective cost
should be established.
88
Paint Manufacturing
TABLE 3.4.2

ENVIRONMENTAL
COST 1
[4]
(EVA),
IN
YEAR
GVA
1988
746,000
82,744
663,256
1,065
662,191
1989
862,527
79,372
783,155
1,367
781,788
1990
973,293
94,118
879,175
1,582
877,593
1991
1,012,851
63,292
949,175
1,658
947,901
1992
1,209,564
87,579
1,121,985
1,911
1,120,074
1993
1,576,526
141,585
1,434,941
3,342
1,431,599
1994
1,696,618
156,253
1,540,365
3,662
1,536,703
DEPRECIATION
[2]
[1]
NVA
[3] = [1]-[2]
EVA
[5] = [3]-[4]
Refer to the PM10 control cost of Fabric Filter
1,600,000
Environmental
Degradation Cost
1,400,000
1,200,000
1,000,000
Depreciation
800,000
600,000
EVA
400,000
200,000
1988
FIGURE 3.4.2
1989
1990
1991
1992
1993
1994
PAINT MANUFACTURING INDUSTRY: EVA, DEPRECIATION AND

PRICES), 1988-1994
89
Paint Manufacturing

VALUE AND VOLUME OF PRODUCTION, 1988-1994
Year
Value of
Production
(in 000 P)
1988
2,497,848
1989
Price
(per kilo)
1 gal. = 5 kg.
Volume of
Production
(in metric tons)
158.54
31.71
78,772
2,852,457
147.31
29.46
96,825
1990
3,313,302
178.07
35.61
93,044
1991
3,559,035
221.27
44.25
80,430
1992
4,067,576
226.94
45.39
89,614
1993
5,251,468
205.71
41.14
127,649
1994
5,382,756
204.82
40.96
131,415
Price
(per gallon)
Source: ASE, NSO

COST OF POLLUTION CONTROL DEVICES (PESOS/MT), 1988-1994
IPIN OMDE
CPI All
Items
(1 + g)
FABRIC FILTER
YEAR
Total Cost
AnCC
AOMC
1988
2,703
2,473
230
1989
2,824
2,566
258
1.0375
1.1220
1990
3,402
3,107
295
1.2110
1.1417
1991
4,123
3,774
350
1.2146
1.1865
1992
4,266
3,885
381
1.0295
1.0895
1993
5,239
4,829
410
1.2429
1.0761
1994
5,573
5,126
447
1.0616
1.0904
Source: Estimation of Direct Environmental Waste Disposal Services, by E. Orbeta

ASE, NSO
90
Paint Manufacturing
REFERENCES
Economopoulos, A. P. 1993. Assessment of Air, Water and Land Pollution. Part One:
Rapid Inventory Techniques in Environmental Pollution. World Health Organization
(WHO). Geneva, Switzerland.
Environmental and Natural Resources Accounting Project (ENRAP) Phase III. 1995.
Paint Industry. ENRAP Sectoral Studies. Vol. III. Quezon City.
Japan International Cooperation Agency (JICA) and Surface Coating Research &
Development Center (SRDC). 1996. Symposium on Advanced Surface Coating
Technology. Aug. 12-16.
National Statistics Office (NSO). 1988-1994. Annual Survey of Establishments. Manila,
Philippines.
_____________________________. 1988-1994. Consumer Price Index. Manila, Philippines.
Orbeta, E. 1990. Estimation of Direct Environmental Waste Disposal Services. ENRAP
Phase III. Quezon City.
United Nations (UN). 1993. Integrated Environmental and Economic Accounting. Interim
version; series F. (61).
91
Sugar Milling
Sugar Milling
3.5.1
INTRODUCTION

Sugar is a traditional export commodity of the Philippines and a major earner of
foreign exchange for the economy. In 1996, the Philippines sugar industry is comprised of 37
sugar districts in 17 provinces covering a total of 370,000 hectares, of which, 81 percent are
10 hectares and below (PSMA, 1996). There are 100,000 farm operators in the entire
industry, employing a total of 556,000 agricultural workers and 25,000 mill workers. Eighty
one to 90 percent of the total production is consumed locally, while 10 to 15 percent is
exported to the USA.
Sugar cane consists of 15 percent fiber and 85 percent water and soluble solids.
The major by-products of the sugar industry are bagasse, pressed mud or pressed cake, and
molasses. The production of bagasse depends upon the fiber content of the sugar cane,
which varies from 13 to 17 percent of cane, and depending on the area where the cane is
cultivated. On the average, bagasse production is about 15 percent of the cane crushed. The
production of pressed mud is about 3 percent of the cane in sulphitation factories and 7
percent in the carbonation factories. The sulphitation press mud also contains sugar cane
wax, which varies from 8 to 10 percent of the mud. Molasses is the main product of the cane
sugar industry. Production of molasses depends largely upon the quantity, and to some
extent, upon the quality of the cane crushed, varying from region to region. Its average
production is 4.4 percent of cane processed.
3.5.1.2 Scope and Limitation of the Study

The estimation covers both physical and monetary accounting of pollution
generated by raw sugar production. Particulate matter (PM) for air and BOD for water are the
pollutants estimated in this study.
3.5.1.3 Production Process

The first stage in sugar milling is done in the cane carrier section where the cane is
dumped (see Figure 3.5.1). It is tipped into a feeding table and passed through the cane
knives. The cane is crushed through a crushing machine and disintegrated to extract the
juice. Hot water is added to help macerate the canes. In this stage, a large amount of water
is used for extracting the juice and for cooling the bearings of mill tandems. This cooling
water picks up oils and grease as well as some juice from spillover and leakage.
The boilers use the bagasse from millers as fuel to generate steam to run the
turbine generators and other steam driven equipment. Combustion of bagasse for steam and
power generation emits air-borne particulates, which form the bulk of air pollutants. The air
emissions are the fly ash, bottom ash and flue gas. Fly ash has adverse effects on human
health and plant life. These fly ash and particulates can damage vegetation by covering the
surface of leaves, soil clothes, buildings and other structures and pose a health hazard when
inhaled into the lungs with air.
The next stage is done in the clarification section where the heated juice is treated
with lime to reduce its acidity. The mixture then goes through the heaters, then to the settling
tanks or clarifiers where the clear juice is drawn off successively from the top. The impurities
and mud settled at the bottom of the clarifiers are then pumped to vacuum filters to separate
the juice.
92
Sugar Milling
INPUT
PROCESS STAGE
CANE MILLING
PLANT
Sugar Cane,
Water
Waste Water
BAGASSE
DILUTE JUICE
& CHEMICALS
SEDIMENTATION
UNITS
Solid Waste
PM *
BOD *
PRESS MUD
WASHING OF
FILTER CLOTH
FILTER
PRESS
WASTE
WASHING OF FLOORS
& EQUIPMENT FOR
SPILLOVERS
Solid Waste
PM *
Waste Water
BOD *
Waste Water
BOD *
Excess Condensed
Water
EVAPORATORS
BOD *
SYRUP
VACUUM
PANS
SPRAY
POND
CRYSTALLIZER
CENTRIFUGES
MOLASSES
Pond Overflow
Waste
SUGAR
Source:
Victorias Milling & Refinery
and monetary
FIGURE 3.5.1 SUGAR MILLING PROCESS FLOW
93
Sugar Milling
The heavy syrup is readied for further evaporation in the vacuum pan where the
sugar crystals are separated. The mixture of sugar crystals and mother liquor from the
vacuum pan is called massecuite. The massecuite is dropped into mixers or crystallizers with
revolving arms to keep the mass in motion for gradual cooling; then into centrifugal machine at
high speed that throws off the molasses. At this point the raw sugar is collected. Improper
handling of molasses as well as leakage and overflow from molasses storage tanks may
seriously increase the pollution load of sugar factory wastewaters.
Wastes generated from the cane carrier section to the centrifuging section, such as
condensing water, wash water, cooling water, spill and caustic washing, are typically
characterized to have toxic cleaning substances, oil, lubricants, lime slurry and other organic
substances.
The raw sugar is then weighed and stored in the sugar warehouse. From the
warehouse, it is either shipped out for export or conveyed to the refinery for the manufacture
of refined sugar.
3.5.2
SOURCES AND METHODS

The effluent and emission factors used in this study were obtained from the
Industrial Efficiency and Pollution Control Program (ENRAP II, 1992). Data on production of
raw sugar were taken from the Sugar Regulatory Administration (SRA). Data on capital cost
and operating plus maintenance cost for 1988 were gathered from ENRAP III (1993).
Appendix Table 3.5.1 illustrates the extrapolation of the 1988 cost for the years 1989 to 1994.
The CPI for 1988 to 1994 were taken from the NSO, and the IPIN, GVA, and depreciation
were taken from the National Accounts of the Philippines published by the NSCB.

Raw sugar production data from SRA were adjusted by 5 percent which is the
undercoverage for production based on the estimates of raw sugar in agricultural sector. The
adjusted production was then multiplied by the emission/effluent factor. The effluent factor for
H2O is 2.6 Kg/MT. This means that for every MT of raw sugar produced, there is a
corresponding 2.6-Kg of BOD generated. Similarly, emissions to air in the form of PM, are
pegged at 20 Kg/MT of raw sugar produced. In this study, pollutants were estimated as:
Effluent to water:
BOD5 in MT = Raw Sugar Production in Mt. x 2.6 kg/Mt/1000.
Emissions to Air:
PM in MT
= Raw Sugar Production in Mt. x 20 kg/Mt/1000

In estimating the environmental cost of producing raw sugar, the cost of controlling
emissions or effluents per unit of pollutant was multiplied by the quantity of
emissions/effluents. The general equation is:
94
Sugar Milling
EC = Emission/Effluent x [AnCC + AOMC of Pollution Control Device (PCD) per

unit of pollution]
where:
EC
= Environmental Cost
For this study, the value of environmental degradation, in pesos, caused by the
industry was calculated using the following equations:
BOD5 Control Cost

= BOD5 in MT x (AnCC of SC & AFL + AOMC of SC & AFL in pesos per MT)
PM Emission Control Cost

= PM in MT x (AnCC of Cyclone + AOMC of Cyclone in pesos per MT)
where:
SC & AFL = Sludge Collector and Aerated Facultative Lagoon
3.5.3
RESULTS

The increase in the production of raw sugar corresponds to an increase in the BOD5
load generated in wastewater discharged during the milling processes. Similarly, PM emitted
into the air increases with every increase in production.
In 1994, the estimated BOD5 load was pegged at 5,534 MT, which is 33 percent
higher than the BOD5 load in 1998 registered at 3,704 MT. The PM emissions, on the other
hand, increased to 42,570 MT in 1994 from 28,494 MT in 1998. This represents an increase
of 49 percent in PM emissions during the period (see Table 3.5.1).

The environmental cost of discharging and emitting waste was estimated using the
capital costs and operation and maintenance costs of pollution devices. The sludge collector
and the aerated facultative lagoons are the pollution devices used in treating BOD5. On the
other hand, the cyclone was used in controlling PM emissions.
Table 3.5.2 shows the estimated environmental costs of controlling pollution during
the period 1988-1994. Data shows that controlling PM emissions was more costly than
treating wastewater. This is due to the relative high price of pollution device designed to
control air emission.
In 1988, the total control cost of treating BOD5 in wastewater amounted to P 11.7
million. This increased threefold to P 35.4 million in 1994. PM emission control cost, on the
other hand, was estimated at P 93.6 million in 1998 and this increased by 308 percent in 1994
to P288 million.
95
Sugar Milling
TABLE 3.5.1
RAW SUGAR PRODUCTION, BOD5 EFFLUENTS AND PM EMISSIONS,

IN METRIC TONS, 1988-1994
Raw Sugar
Production 1
Year
TABLE 3.5.2
PM
BOD5
1988
1,424,715
3,704
28,494
1989
1,905,071
4,953
38,101
1990
1,710,253
4,447
34,205
1991
1,939,064
5,042
38,781
1992
1,947,216
5,063
38,944
1993
2,120,927
5,514
42,419
1994
2,128,509
5,534
42,570
Adjusted Raw sugar production. SRA reported production was adjusted

by 5 percent as an undercoverage adjustment
ENVIRONMENTAL COST: BOD5 AND PM CONTROL COST, IN

BOD5 Control Cost
Year
Total
Control
1
Cost
AnCC
Total
SC
PM Control Cost
AoMC
AFL
Total
SC
Cyclone
AFL
1988
11,697
7,434
3,671
3,763
4,263
2,978
1,285
1989
16,702
10,453
5,090
5,362
6,396
4,468
1990
17,766
11,090
5,535
5,555
6,557
1991
24,252
14,578
7,620
6,898
1992
25,604
14,121
7,878
6,244
1993
1994
1
Total
93,603
AnCC
AOMC
85,624
7,978
1,928
130,706 118,736
11,970
4,580
1,977
141,360 129,091
12,269
8,821
6,162
2,659
194,226 177,722
16,505
9,651
6,741
2,909
201,798 183,740
18,058
32,902
23,081 10,663 12,417 11,309
7,900
3,410
269,908 248,743
21,165
35,373
25,242 11,356 13,885 12,376
8,645
3,731
288,055 264,895
23,160
Total Control Cost-BOD5 = Total AnCC + Total AOMC

In 1988, the share of environmental protection cost to the NVA of sugar industry
was only 0.75 percent. The highest share occurred in 1993 at 1.50 percent (refer to Table
3.5.4 and Figure 3.5.2).
Meanwhile, the EVA (at current prices) registered a negative growth rate at 24.13
percent for 1992-1993. The highest positive growth was registered in 1990-1991 at 40.67
percent. The EVA average annual growth rate of the industry for the years 1988-1994 was
8.15 percent.
96
Sugar Milling
TABLE 3.5.3

(EVA), IN
ENVIRONMENTAL COST 2
GVA
[1]
YEAR
Depreciation
[2]
NVA
[3] = [1] -[2]
Total
[4]
1988
14,487,439
481,953
1989
14,394,961
1990
17,663,475
1991
PM
Control
cost
BOD5
Control
cost
EVA
[5] = [3]
[4]
14,005,486
105,300
11,697
93,603
13,900,186
620,589
13774,372
147,388
16,702
130,706
13,626,984
474,927
17,188,548
159,135
17,766
141,360
17,029,413
24,586,920
413,921
24,172,999
218,506
24,252
194,226
23,954,493
1992
26,787,989
386,042
26,401,947
227,412
25,604
201,798
26,174,535
1993
20,473,035
311,694
20,161,341
302,814
32,902
269,908
19,858,527
1994
22,981,998
358,810
22,623,188
323,444
35,373
288,055 22,299,744
1
GVA for sugar milling estimated using the ratio of sugar milling industry to total food industry based on
the ASE/CE.
2
Environmental cost = PM and BOD5 s combined AnCC and AOMC.
27,000,000
24,000,000
Environmental
Degradation Cost
21,000,000
18,000,000
Depreciation
15,000,000
12,000,000
EVA
9,000,000
6,000,000
3,000,000
0
1988
FIGURE 3.5.2
3.5.4
1989
1990
1991
1992
1993
1994
SUGAR
MILLING
INDUSTRY:
EVA,
DEPRECIATION
AND
PRICES), 1988-1994
RECOMMENDATIONS
With the current emission and effluent factors obtained from foreign environmental
protection agency, there is a need therefore to base these factors on local situations to be
more objective.
97
Sugar Milling

AVERAGE COST OF POLLUTION CONTROL DEVICES, 1988-1994
Sludge Collector
Aerative Facultative
Lagoons
Cyclone
Year
Total
Cost
AnCC AOMC
Total
Cost
AnCC AOMC
Total
Cost
AnCC AOMC
IPIN CPI OMDE All Items

(1+g)
(1+g)
1988
1,795
991
804
1,363
1,016
347
3,285
3,005
280
1989
1,930
1,028
902
1,443
1,054
389
3,432
3,118
314
1.04
1.12
1990
2,275
1,245
1,030
1,721
1,277
445
4,134
3,776
359
1.21
1.14
1991
2,734
1,512
1,222
2,078
1,550
527
5,011
4,586
426
1.22
1.19
1992
2,888
1,557
1,331
2,171
1,596
575
5,185
4,721
464
1.03
1.09
1993
3,368
1,935
1,433
2,602
1,984
618
6,367
5,868
499
1.24
1.08
1994
3,616
2,054
1,562
2,780
2,106
674
6,773
6,229
544
1.06
1.09
Sourc:
Estimation of Direct Environmental Waste Disposal Services (Orbeta, 1990).
National Accounts of the Philippines, NSCB
ASE/CE, NSO
98
Sugar Milling
REFERENCES
Economopolous, A.P. 1993. Assessment of Air, Water, and Land Pollution. Part One:
Rapid Inventory Techniques in Environmental Pollution. World Health Organization
(WHO). Geneva, Switzerland.
National Statistical Coordination Board (NSCB). 1988-1994. National Income Accounts of
the Philippines. Makati City, Philippines.
Naitonal Statistics Office (NSO). 1988-1994. Consumer Price Index. Manila.
Orbeta, E. M. December 1995. Estimation of Direct Environmental Water Disposal Services.
Environment and Natural Resources Accounting Project-Phase III (ENRAP III).
Quezon City.
Philippine Sugar Millers Association, Inc. (PSMA). n.d. Sugar Mill Environment and
Pollution Abatement and Control Program: A Philippine Model. n.p.
_______________________________________. 1996. The Sugar Industry in Focus. Manila,
Philippines.
Victorias Milling and Refinery, Inc. n.d. Corporate Profile.
99
3.6.1
INTRODUCTION
3.6.1.1
Cement is used for binding sand and gravel to form concrete, for uniting the
surfaces of various materials or for coating surfaces for protection. Cement hardens by the
evaporation of the plasticizing liquid, by internal chemical change, by hydration, or by the
growth of interlacing sets of crystals. Other types of cement harden as they react with oxygen
or carbon dioxide in the atmosphere.
There are currently nineteen (19) cement manufacturing firms operating all over the
country, more than half of which are in the Luzon area. The industrys major products include
Portland cement, clinker and pozzolan cement. From 1988 to 1994, the total cement
production more than doubled from 3,519 thousand metric tons (MT) in 1988 to 7,885
thousand MT in 1994. This was due to the boom in the construction industry for the period,
increasing demand for cement and jacking up prices to unparalleled proportions.
3.6.1.2
The study compiled the physical and monetary accounts showing air emissions
generated from cement production. The emissions were estimated for particulate matter (PM)
only, the industry being a major contributor to total PM emissions. Conventional air pollutants
due to fuel use, such as oxides of nitrogen and sulfur, carbon monoxide and volatile organic
compounds, were excluded. Moreover, water pollution due to this economic activity was not
estimated.
In addition, the extraction of raw materials for cement manufacturing was not
considered. This was based on the premise that this study will be limited to the manufacturing
aspect only.
The US-EPA and the WHO emission factors, from the ENRAP III Sectoral Study on
the Portland Cement Industry, were used and expressed in terms of kg per MT of clinker.
This presented a minor obstacle for the estimation since PM emissions due to coal crushing,
conveying and storage are fuel-related. A more accurate estimation of the loads of this
pollutant would be arrived at if the emission factors and process rates applied to them were
also expressed in terms of fuel input instead of clinker output. However, since no fuel inputbased emission factors were used, the emission factors based on clinker output will have to
suffice, and subsequently, clinker production will be used as process rate for the estimation of
PM due to coal use.
Furthermore, the emission factors used were for uncontrolled emissions. This
assumes that all emissions of the Cement industry are unabated, effectively bloating the
physical and consequently, the monetary accounts. The use of emission factors for controlled
emissions would require additional parameters such as type, age, efficiency and the number
of hours of operation of pollution control devices. These parameters, however, remain
unavailable at the present time.
3.6.1.3
Cement manufacturing plants employ three (3) basic types of production

processes: wet, semi-dry with pre-calciner, and dry with pre-heater. The process type
adopted by each establishment dictates the emission factors used in the estimation of the
volume of pollution caused by its activity. See Figure 3.6.1 for the process flow.
100
INPUT
PROCESS STAGE
SILICA, LIMESTONE
CLAY
CRUSHING
WASTE
Particulate Matter
PM*
PROPORTIONING
PM*
GRINDING
PM*
MIXING/
BLENDING
PM*
HEATING
PM*
Uncontrolled
Kiln
COOLING
PM*
Klinker Cooler
STORING
PM*
Open Klinker
Storage
MIXING/
BLENDING
PM*
GRINDING
PM*
Finish Grinding
STORING
PM*
PACKAGING
PM*
Note:
FIGURE 3.6.1
DRY PROCESS FLOW
101
In the dry process, the raw materials from the storage bins are properly
proportioned using automatic weigh feeders and are fed into the raw mill for mixing and
grinding.
The mixture, called raw material mix, is then conveyed into the silo for
homogenization. The homogenized material mix is fed into the pre-heater using the heat
emitted from the kiln. The raw material mix contains 60-70 percent limestone, 19-28 percent
silica, 3-8 percent alumina, 0.3-6 percent iron oxide and 0.3-1 percent alkali materials.
The wet process is essentially similar to the dry process except for the difference in
the proportioning and in the grinding process. In the initial grinding process, water is added.
This produces a final homogenous mixture called slurry, which then undergoes the same
steps of burning, cooling, addition of gypsum, and storage as in the dry process. In the wet
process, proportioning can take place before or after the grinding stage. Another very
important difference between the two processes is that the dry process is more cost effective.
Less heat is required for moisture removal for the dry process due to its lesser moisture
content and the use of a pre heater system. The pre-heated materials are then fed into the
o
o
kiln for calcining and burned to a temperature of about 1,300 C to 1,500 C. Calcium
carbonate (CaCO3) is then transformed to lime and blends with sulfur, alumina, silica and
other oxides to produce clinker which is made up of tricalcium silicate (3CaOSiO2), dicalcium
silicate (2CaOSiO2) and tricalcium aluminate (3CaOAl2O3). The clinker is then mixed with
gypsum and fed into the finish mill to produce cement.
The cement is stored in silos and further withdrawn by an air slide conveyor going
to the centrifugal bucket elevator and screw-dropped into the storage bin and fed to the
packing machine.
The cement manufacturing industry is one of the most pollutive industries in terms
of PM emissions. This is due primarily to the dusty nature of its non-metallic mineral raw
materials and its products as well as the combustion of coal during cement production. In
fact, dust emissions are produced in practically all stages of production of clinker and cement,
with the exception perhaps of the wet stages. The calcining process in the rotary kiln is the
largest source of PM. Kiln emissions come from the burning of coal and the furnace at the
lower end of the kiln and particles lifted by the hot gasses passing through the kiln. The
advanced age and corresponding inefficiency of cement plants, the high cost of installing
environmental protection equipment, and the poor maintenance of these equipments,
likewise contribute to this condition.
With regards to coal, only one out of the 18 cement firms operating in 1988 used
fuel other than coal in their production process. The cement manufacturing industry, in fact,
accounted for almost 40 percent of the countrys total coal consumption at the time.
Aside from PM, cement plants also produce substantial amounts of SOx, NOx,
VOC, CO and carbon dioxide (CO2). Most of these pollutants are coal-related and released
during the heating of the kilns.
3.6.2.
SOURCES AND METHODS
3.6.2.1
Data Sources
The sources of data for the study were administrative reports and special studies
from different institutions. Process rates of cement and clinker production were taken from
Philippine Cement Manufacturers Corporation (PHILCEMCOR). Plant classifications by
process type were lifted from the study of Onoda Engineering and Consulting Co. (1991).
Other sources of data were the ASE, CE, CPI of the NSO, and the National
Accounts of the Philippines of the NSCB.
102
3.6.2.2
3.6.2.2.1
Physical Estimation
Instead of using the volume of production of cement as basis for the process rate,
production data for clinker in MT, was used (refer to Appendix Table 3.6.1). This is to
standardize the process rates, as there are several types of cement products that contain
other raw materials in different proportions. In addition, the available emission factors from
the USEPA and WHO are expressed in terms of clinker production. Table 3.6.1 shows the
various emission factors of the different processes of production.
The 19 cement plants are classified by the type of process employed, i.e., wet,
semi-dry, dry with pre-calciner and dry with pre-heater. However, due to the absence of data,
the same emission factor was used for semi-dry and wet process cement plants and for the
dry processes, with pre-calciner and pre-heater.
TABLE 3.6.1
CLINKER PM EMISSION FACTORS IN KILOGRAMS PER METRIC TON

OF CLINKER, BY SOURCE OF EMISSION AND TYPE OF PROCESS
Process Type
Emission Source
Wet
Uncontrolled Kiln
Semidry
Dry with
pre-calciner
65.00
130.00
Clinker Cooler
4.60
4.60
Open clinker storage
5.40
5.40
10.60
10.60
Cement Packaging
2.20
2.20
Primary and Secondary Crushing
4.20
4.20
Coal crushing and conveying
5.46
5.46
Coal storage
5.58
5.58
103.04
168.04
Finish grinding
TOTAL
Dry with
pre-heater
Source: USEPA and WHO
The PM factors were classified according to the stage of production, with further
classification for the kiln according to process type. To compute for the emission, the process
rate (clinker) was multiplied by the applicable emission factor per stage of production. For
firms that do not have pollution control devices, uncontrolled emission factors were applied,
while for firms that have pollution control devices, controlled emission factors were used.
Furthermore, efficiency levels of the control technology, if available, were likewise applied to
pollution loads of these plants. The formula for the physical estimation of pollution is:
PMpty Emission = ( ems Emission Factorems/pty ) x (Clinker production pty )
where:
PMpty Emission
= PM emissions by process type
pty
= Process type: wet (w), semi-dry (sd), dry with

calciner (d1) and dry with preheater (d2)
pre-
103
Emission Factor ems /pty
= Emission factor for each emission source for each

process type
ems
= Emission source: uncontrolled kiln, clinker cooler, open

clinker storage, finish grinding, primary and secondary
crushing, coal crushing and conveying and coal
storage
Clinker production pty
= Production of clinker by process type
3.6.2.2.2
Monetary Estimation
Upon estimation of the emissions, these physical estimates would have to be

converted into monetary values (monetary estimates). The DBP Industrial Restructuring
Study on Cement has come up with rough estimates of some of the necessary parameters.
These include investment costs for pollution control and measuring devices, as well as
operating costs.
The annual capital cost of electrostatic precipitator (ESP) is available only in 1988,
which was derived from Valuation of Direct Environmental Waste Disposal Services (Orbeta,
1990).
The succeeding years were estimated using the growth of IPIN of other
miscellaneous durable equipment. The annual operating and maintenance cost, on the other
hand, used the growth of CPI for all items to update the prices of ESP (see Appendix Table
3.6.2).
In estimating the environmental degradation cost of cement industry (EDCCI) the
sum of the annual capital cost (AnCCESP) and the annual operating and maintenance cost
(AOMCESP) of ESP were multiplied by the total PM emission.
EDCCI
EPM x (AnCCESP + AOMCESP)
where:
EDCCI
AnCCESP
AOMCESP
EPM
=
=
=
=
Environmental Degradation Cost of Cement industry (in pesos)

Annualized Capital Cost of Electrostatic Precipitator
Annual Operating and Maintenance Cost of Electrostatic Precipitator
Total Emission of PM
3.6.3
RESULTS
3.6.3.1
Physical Estimates
For 1994, the total emission of PM in the cement industry reached 1.02 million MT.
This corresponds to more than 100 percent increase of PM emission in 1988 pegged at
509,394 MT (see Table 3.6.2). Assuming a constant emission factor, the doubling of the
volume of PM emission from 1988 to 1994 is a reflection of the increasing trend in cement
production during the period under review.
Emissions of cement plants employing dry with pre-heater (d2) process were
estimated to be about 65.8 percent of the total PM emissions (see Figure 3.6.2). This was
due to the considerable volume of clinker production from this type of cement plant as well as
a high cumulative emission factor of 168.04 kg/MT (see Table 3.6.2 and Appendix Table
3.6.1.).
104
TABLE 3.6.2
CLINKER PRODUCTION AND PM EMISSIONS, BY PROCESS TYPE, IN

PROCESS TYPE
YEAR
CLINKER
PRODUCTION
Total PM
Emission
Wet (w)
Semi-dry
(sd)
Dry with
pre-calciner
(d1)
103.04
No. of Establishments
19
Dry with
pre-heater
(d2)
168.04
1988
3,519,226
509,394
110,244
19,707
36,338
342,104
1989
4,836,805
662,414
173,083
65,276
44,374
379,681
1990
5,168,017
708,581
190,036
63,368
51,752
403,425
1991
5,242,302
718,849
195,942
57,972
50,006
411,929
1992
5,261.726
717,822
204,763
58,954
33,930
420,176
1993
6,217,036
866,353
216,648
66,090
49,624
533,990
1994
7,885,012
1,020,324
303,675
95,703
49,848
571,097
Dry with preheater - (d2)

59%
Dry with precalciner (d1)

6%
Wet - ( w )
27%
Semi dry - (sd)
8%
FIGURE 3.6.2
PM EMISSIONS BY PROCESS TYPE, IN METRIC TONS, 1988-1994
105
3.6.3.2
Monetary Estimates
The monetary estimates reveal an alarming trend for environmental degradation by

the Cement Manufacturing Industry. Environmental degradation cost for the industry at
current prices grew at a staggering 313 percent from 800 million pesos in 1988 to 3,305
million in 1994, or an average annual growth rate of 26.7 percent. Relative to NVA, the share
of environmental degradation grew from 43.0 percent in 1988 to 57.7 percent in 1994. For
1993 and 1994, the damage to the environment caused by the industry effectively offset its
benefit to the economy by more than half. Because of this increase in the share of
environmental degradation cost, EVA for the industry grew at a slower annual rate of 14.8
percent, compared with the annual growth of 20.6 percent for NVA.
It should again be emphasized, however, that due to the lack of data for several
parameters, emission factors for uncontrolled emissions were used for these estimates. This
assumes that all emissions of the industry are unabated and escape into the environment. A
more complete data set can be expected to yield substantially lower levels of pollution for the
industry.
TABLE 3.6.3
YEAR

GVA
[1]
Depreciation
[2]
NVA
[3]=[1]-[2]
Environmental Degradation
Cost (EDCCI)
Total
[4]
AnCC
AOMC
(EVA),
IN
EVA
[5] = [3][4]
1988
2,186,713
327,950
1,858,763
799,749
738,428
61,321
1,059,014
1989
3,511,691
274,376
3,237,315
1,085,723
996,257
89,466
2,151,592
1990
3,464,779
509,323
2,955,456
1,399,816
1,290,553
109,263
1,555,640
1991
4,782,301
758,879
4,023,422
1,721,744
1,590,223
131,521
2,301,678
1992
4,761,986
892,131
3,869,855
1,777,887
1,634,797
143,091
2,091,968
1993
6,029,086
1,193,284
4,835,802
2,638,158
2,452,325
185,833
2,197,644
1994
7,181,789
1,457,657
5,724,132
3,304,707
3,066,074
238,633
2,419,425
3.6.4
RECOMMENDATIONS
Recent publications on global warming listed the cement industry as one of the
notorious anthropogenic sources of carbon emissions. It is therefore recommended that this
pollutant be included in future estimations. Also, the above calculations were derived from
process emission, hence emission due to coal use should be considered. To avoid outright
generalization that cement firms are pollutive, the assumption that all of the pollution control
devices employed by these firms are inefficient should be verified. To gain a more precise
picture of the pollutiveness of cement manufacturing, the PM produced during quarrying and
storage of raw materials should be included. Moreover, parameters used must conform to
local conditions to present a more credible conclusion.
106
7,000,000
6,000,000
5,000,000
Environmental
Degradation Cost
4,000,000
3,000,000
2,000,000
EVA
Depreciation
1,000,000
0
1988
FIGURE 3.6.3
1989
1990
1991
1992
1993
1994
CEMENT MANUFACTURING: EVA, DEPRECIATION, ENVIRONMENTAL

COST, IN THOUSAND PESOS (AT CURRENT PRICES), 1988-1994
107

CLINKER PRODUCTION, BY PROCESS TYPE, IN METRIC TONS, 1988-1994
Production
Process Type
Dry w/ precalciner (d1)
Dry w/ preheater (d2)
Semi-dry (sd)
Wet (w)
TOTAL
1988
1989
1990
1991
1992
1993
1994
2,041,802
2,259,471
2,400,766
2,451,373
2,500,452
3,177,755
3,398,579
191,256
633,502
614,983
562,617
572,144
708,070
1,098,709
1,286,167
1,943,832
2,152,269
2,228,312
2,189,130
2,331,211
3,073,892
3,519,226
4,836,804
5,168,018
5,242,301
5,261,726
6,217,036
7,571,180
Converted from 40 kg bag volume

Source: Philippine Cement Manufacturers' Corporation (PHILCEMCOR)

COST OF POLLUTION CONTROL DEVICES, PESOS PER METRIC TON, 1988-1994
Electrostatic Precipitator (ESP)
YEAR
Total Cost
AnCC
AOMC
IPIN OMDE
CPI - All
Items
1988
1,570.00
1,449.62
120.38
1989
1,639.05
1,503.98
135.07
1.04
1.12
1990
1,975.53
1,821.32
154.21
1.21
1.14
1991
2,395.14
2,212.18
182.96
1.21
1.19
1992
2,476.78
2,277.44
199.34
1.03
1.09
1993
3,045.13
2,830.62
214.51
1.24
1.08
1994
3,238.89
3,004.99
233.90
1.06
1.09
Source:
CE/ASE, NSO
108
REFERENCES
Buenaventura, Augusto M. S. December 1995. Draft Final Report: The Portland Cement
Industry. Philippine Environmental and Natural Resources Accounting Project
(ENRAP Phase III).
Department of Environmental and Natural Resources (DENR) Administrative Order No.
35 (Series of 1990). Revised Effluent Regulations of 1990, Revising and Amending
the Effluent Regulation of 1982 (corrected version). Quezon City, Philippines.
Development Bank of the Philippines. 1995. Cement Industry Environmental Management
Plan. Draft 3. Makati City, Philippines.
Onoda Engineering and Consulting Company, Ltd.
1991. Industrial Restructuring
Studies-Cement. Development Bank of the Philippines. Makati City, Philippines.
Orbeta, E. M. 1990. Valuation of Direct Environmental Waste Disposal Services. ENRAP
Phase III. Quezon City, Philippines.
Rufo, C. M., et al. September 1996. Pollution Management Guidebook for the Cement
Industry, Industrial Environmental Management Project. Pasig City, Philippines.
United States Environmental Protection Agency (USEPA). 1988. Compilation of Air
Pollutant Emission Factors: Stationary Pt. and Area Sources. North Carolina: U.S.A.
____________________________________________________. 1995. Compilation of Air
Pollutant Emission Factors. North Carolina: U.S.A.
World Health Organization. 1982. Rapid Assessment of Sources of Air, Water and Land
Pollution. Geneva, Switzerland.
109
Petroleum Refining
Petroleum Refining
3.7.1
INTRODUCTION

The Philippine petroleum refining industry has long been controlled by three (3)
major companies, namely: Pilipinas Shell Petroleum Corporation, Caltex Philippines, Inc., and
Petron Corporation. Petron and Shell have the capacity to produce light end hydrocarbons to
heavier kinds, while Caltex produce only the light ones with their slurry being exported abroad
or sold to petrochemical plants. Petroleum refining comes from the principle that different
molecular weights have different levels of boiling points, i.e. hydrocarbons with low molecular
weights begin to vaporize at a temperature less than that required to boil water, whereas
higher temperatures are required to distill larger and more complex molecules.
Petroleum refinery products include liquefied petroleum gas (LPG), gasoline,
kerosene, aviation fuel, diesel fuel, fuel oils, lubricating oils, feedstock for the petrochemical
industry and a thousand others. Its activities start with the receipt of crude for storage at the
refinery including all petroleum handling and refining operations and terminate with storage
preparatory to shipping the refined products from the refinery.
Crude was mostly imported from Middle East sources accounting for almost 80
percent while the Far East and domestic crude account for the rest. The whole industry
employed only 1,742 personnel in 1981 but grew to 2,421 personnel in 1991 (NSO, 1992).
The slow increase of employment in this particular industry as compared to others was
attributed to the high technicality of the job it requires.
3.7.1.2 Scope and Limitation of the Study

The study deals with air emissions of the production processes of petroleum
industry. Volatile organic compound (VOC) emission from storage of crude and refined
products in the refinery was not included. Also, water effluents and solid waste were not
accounted.
The cost of environmental degradation due to petroleum refinery was confined to
the control cost of uncontrolled CO. This was done to avoid double counting. This further
assumes that the scrubber has a 90 percent-100 percent efficiency in the removal of CO, PM,
SOx, Ammonia and Aldehydes.

The petroleum refining industry employs a wide variety of processes. The kind of
crude oil feedstock and the petroleum products that are to be produced determines the
refinerys processing flow. The US-EPA (1985) identified the major categories of processes.
It involves separation, conversion, petroleum treating, feedstock and product handling and
employs wide auxiliary processes to maintain the plant.
In the course of production of the desired petroleum products, pollutants are emitted
simultaneously to both air and water. Volatile organic compounds (VOC) and CO are the
primary pollutants emitted in the refining of petroleum.
Moreover, US-EPA specifically listed the following refining processes and facilities
that are significant air pollutant contributors: vacuum distillation, catalytic cracking, thermal
cracking processes, utility boilers, heaters, compressor engines, blowdown systems and sulfur
recovery (Figure 3.7.1).
110
Petroleum Refining
INPUT
PROCESS STAGE
DISTILLATION:
Atmospheric/Vacuum
Distillation
CRUDE OIL
Hydroxides, Other
Catalysts
CONVERSION:
Thermal/Catalytic
Cracking
Ammonia,
Other Chemicals
TREATING:
Desulfurization,
Hydrotreating
PRODUCT HANDLING:
Blending, Loading,
Unloading, Storing
WASTE
VOC, SOx*, NOx*, PM*,

CO*
VOC, SOx*, NOx*, PM*, CO*,

Ammonia*,Aldehydes*
VOC, SOx*, NOx*, PM*, CO*,

Ammonia*,Aldehydes*
VOC
Source:
Petron, Caltex and Shell
and monetary
FIGURE 3.7.1
PETROLEUM REFINING PROCESS FLOW
111
Petroleum Refining
The process of petroleum refining involves materials that are highly volatile and
extremely reactive. Thus, refineries use specific pollution control devices to contain these
emissions. The ports or outlet of the emissions have been identified. These are associated
with specific process, and are thus easier to identify. But, aside from the identified ports of
possible emissions, there are VOC emission sources that are not associated with specific
process but scattered throughout the refinery. These are called fugitive emissions. Fugitive
emission sources include valves of all types, flanges, seals, process drains, oil/water
separators, cooling towers, wastewater treatment plants and some activities that include
storage and transfer operations. These emissions are attributed to the evaporation of leaked
or spilled petroleum liquids and gas. Normally, good housekeeping and maintenance can
control emission of this kind but this could not be totally discounted.
3.7.1.4 Assumptions
Due to the absence of data for the types of control equipment, the computation for
environmental costs was based on the use of a scrubber as a pollution control device. It is
used to control air pollutants such as CO, PM, SOx, NOx, aldehydes and ammonia. Of these,
CO registered the highest total process emissions. As a result, in the monetary estimates,
AnCC and AOMC of the pollution control device, were based on the uncontrolled emissions of
CO. In effect, CO is used as proxy value in computing for the environmental degradation cost.
3.7.2
SOURCES AND METHODS

Production data were obtained from the NSCB and Department of Energy (DOE).
Emission factors were based from the United States Environmental Protection Agency
(USEPA) as well as the 1993 WHO Rapid Assessment of Sources of Air, Water and Land
Pollution.

The air emissions estimated in this study were based on the emission in fluid
catalytic cracking units (FCCU), moving-bed catalytic cracking units (MCCU), vacuum
distillation (VC), blowdown systems (BS), fluid coking units (FCKU), vapor recovery and flaring
systems (VRFS) only. Other identified ports of emission in the refinery such as storage, filling
systems, etc. were not included.
Data on volume of crude input were used as process rate for this study. The data
was multiplied by the emission factors to get the estimates of pollution in physical terms. Only
emissions to air are estimated in this study.
Emissions
= Volume of crude input x Emission factor
Eq. 1
To take into account the multiplicity of emission ports generated by petroleum

refineries (Table 3.7.1), the formula was enhanced to read as follows:
TE =
volume of crude input x [EF1] + volume of crude input x [EF2] + volume

of crude input x [EF6]
6
volume of crude input x EFp

p =1
Eq. 2
112
Petroleum Refining
where:
TE = total emissions generated by the petroleum refinery
p
= type of emission port (e.g. Fluid Catalytic Cracking Units, Moving Bed
Catalytic Cracking, etc.)
EF = emission factor
TABLE 3.7.1
EMISSION FACTORS USED TO ESTIMATE THE

GENERATED BY PETROLEUM REFINERIES (KG/UNIT)
POLLUTANTS
EMISSION PORTS
EMISSION TYPE
FCCU
Particulate Matter (PM)
MCCU
FCKU
BS
VD
VRSF
.695
.049
1.413
1.413
.077
39.200
10.800
.012
Hydrocarbons
.630
.250
NOx
.204
.014
Aldehydes
.054
.034
Ammonia
.155
.017
SOx
Carbon Monoxide (CO)
1.500
1.662
.052
.002
.054
Note:
FCCU: Fluid Catalytic Cracking Units
MCCU: Moving Bed Catalytic Cracking Units
FCKU: Fluid Coking Units
BS:
Blowdown System
VD:
Vacuum
VRSF: Vapor Recovery System and Flaring
Source: US-EPA, Compilation of Air Pollution Emission Factors, Vol.1: Stationary Points and Area
Sources, 1985
3.7.2.2.2
Monetary Estimation
The cost of using a scrubber was utilized to calculate the environmental degradation
cost due to petroleum refining. This control device is used to control CO, PM, SOx, NOx,
aldehydes and ammonia in the form of particulates, i.e. unburned, gaseous particles, etc.
Although there are different control technologies for these different pollutants, the scrubber
was employed as the pollution control device for petroleum refining due to data
considerations.
For costing purposes, only the uncontrolled emissions were considered.
Uncontrolled emissions were derived from the total emissions by adjusting for the 94 percent
efficiency1 of the industry, that is:
GHG (Greenpeace International, 1993)
113
Petroleum Refining
Uncontrolled emissions = Emissions x (1-Efficiency rate)

= Emissions x (1-0.94)
= Emissions x (0.06)
Eq. 3
In estimating the value of uncontrolled emissions generated by the refineries, the

sum of the AnCC and AOMC of a scrubber, was multiplied to the uncontrolled emissions of
CO, that is:
Environmental degradation cost in Pesos per MT of pollutant
= Uncontrolled CO Emissions in MT x (AnCC Scrubber + AOMC Scrubber)
Eq. 4
VOC was not included in the monetary estimates due to data gaps. The data on
cost of its control technology, the vapor recovery system, are not available. Moreover, some
experts argued that this particular pollutant could be harnessed back to the system for reuse.
The refinery plant will just have to modify its production for maximum efficiency to reduce VOC
emission.
In the calculation of the AnCC, the total cost of the scrubber was employed. Since
the scrubber is utilized to control all six of air pollutants mentioned, the volume of one of the
pollutants will suffice in the calculation for the environmental degradation costs. The resulting
value will serve as a proxy value for the environmental degradation cost. In the physical
estimates, CO registered a significantly high process emission value; thus, it was the one
used in the monetary estimation.
3.7.3
RESULTS
3.7.3.1 Physical estimates

As gleaned from Table 3.7.2, CO had the highest emissions among the pollutants
covered in this study. This is because petroleum contains 80-85 percent carbon and was
released in quantities generally proportional to the carbon content of the crude oil. More than
half a million metric tons of CO, either free or oxidized to form carbon dioxide, was released
annually from 1988-1994. The second most dominant pollutant is sulfur oxide. During the
period of review, the average annual SOx emissions were about 36,000 metric tons. Other
pollutants accounted for emissions were hydrocarbon, particulate matter, nitrous oxides,
aldehydes and ammonia.
TABLE 3.7.2
CRUDE RUN (IN 000 LITERS) AND TOTAL PROCESS EMISSIONS (IN MT)
OF PETROLEUM INDUSTRY, BY TYPE OF AIR POLLUTANTS, 1988-1994
YEAR
CRUDE
RUN
PM
SOX
CO
ALDEHYDES
AMMONIA
1988
10,773,121
24,175
31,274
538,785
27,967
1989
11,351,967
25,474
32,955
567,735
29,470
2,930
948
1,853
3,088
999
1,953
1990
12,887,237
28,919
37,412
644,517
33,455
3,505
1,134
2,217
1991
12,317,929
27,641
35,759
616,044
31,977
3,350
1,084
2,119
1992
13,787,541
30,939
1993
13,644,776
30,619
40,025
689,543
35,792
3,750
1,213
2,371
39,611
682,403
35,422
3,711
1,201
2,347
1994
13,954,152
31,313
40,509
697,875
36,225
3,796
1,228
2,400
HYDROCARBONS
NOX
Source - DOE: Crude run data in barrels was converted to crude run in liters using conversion rate:
1 barrel = 158.9 liters
3.7.3.2 Monetary estimates

114
Petroleum Refining
Total environmental cost was estimated at P 88.6 million in 1988. This amount
increased yearly with an annual average of 18 percent, reaching P 236.7 million by 1994
(Table 3.7.3). The increase in environmental cost was largely due to the increasing levels of
production for the same period.
TABLE 3.7.3
YEAR
ENVIRONMENTALLY ADJUSTED NET VALUE ADDED (EVA) PETROLEUM

INDUSTRY, IN THOUSAND PESOS (AT CURRENT PRICES), 1988-1994
GVA
Depreciation
NVA
[1]
[2]
[3] = [1] -[2]
Environmental Cost
(Scrubber) 1
Total
[4]
EVA
[5] = [3]-[4]
AnCC
AOMC
1988
19,319,000
655,384
18,663,616
88,599
81,160
7,439
18,575,017
1989
16,182,000
596,810
15,585,190
97,523
88,727
8,795
15,487,667
1990
26,089,895
857,365
25,232,530
133,380
121,981
11,399
25,099,150
1991
37,429,109
2,162,032
35,267,077
154,543
141,614
12,929
35,112,534
1992
35,510,054
2,055,032
33,454,200
178,953
163,186
15,767
33,275,247
1993
33,857,845
2,070,870
31,786,975
217,512
200,721
16,791
31,559,463
1994
34,505,551
2,164,276
32,341,275
236,642
217,920
18,722
32,104,633
Note:
AnCC: Annualized Capital Cost
AOMC: Annualized Operating and Management Cost
1
Refer to Appendix 3.7.1 for details
Source:
ASE, NSO

Annual average growth of the industry from 1988 to 1994 was reported to be 13
percent (Figure 3.7.2). Meanwhile, the share of degradation cost to the net value added was
lowest at 0.44 percent in 1991 while the highest was 0.73 percent in 1994.
3.7.4
RECOMMENDATION
As a pioneering study on the environmental aspect of the petroleum industry, there

are numerous parameters and variables that need to be updated to present a more accurate
report. The US-EPA identified a lot of possible ports of emission in the refinery that this study
did not account for. The WHO report also identified several industry activities in the
International Standard Industry Classification (ISIC) that should be included as part of refinery
activities, i.e. wholesale distribution, wholesale storage, etc. Moreover, the parameters on
emission and effluent factors should also be localized so as to fit existing local conditions.
Data on pollution control devices and their respective efficiencies should also be validated
regularly to produce an exact valuation of environmental cost of the industry.
115
Petroleum Refining
40,000,000
35,000,000
30,000,000
Environmental
Degradation Cost
Depreciation
25,000,000
20,000,000
EVA
15,000,000
10,000,000
5,000,000
0
1988
FIGURE 3.7.2
1989
1990
1991
1992
1993
1994
PEROLEUM REFINING INDUSTRY: EVA, DEPRECIATION AND

PRICES), 1988-1994
116
Petroleum Refining
APPENDIX 3.7.1
COST OF SCRUBBER AS A POLLUTION CONTROL DEVICE (PESOS/MT), 1988-1994
SCRUBBER
YEAR
IPIN - OMDE
(1+g)
CPI All Items (1+g)
Total Cost
AnCC
AOMC
1988
2,741
2,511
230
1989
2,863
2,605
258
1.0375
1.122
1990
3,449
3,154
295
1.211
1.1417
1991
4,181
3,831
350
1.2146
1.1866
1992
4,325
3,944
381
1.0295
1.0895
1993
5,312
4,902
410
1.2429
1.0761
1994
5,651
5,204
447
1.0616
1.0903
Source:
ASE, NSO
REFERENCES
Economopolous, A.P. 1993. Assessment of Sources of Air, Water, and Land Pollution, Part
1 & 2. World Health Organization (WHO), Geneva.
Greenpeace International. 1993. Fossil Fuel in a Changing Climate. Pp. 30-38.
Philippines.
National Statistics Office (NSO). 1993. Annual Survey of Establishments.
Orbeta, E. 1990. Estimation of Direct Environmental Waste Disposal Services. The Philippine
Environmental and Natural Resources Project (ENRAP Phase III): Technical
Appendices.
Petron Corporation. Undated. Annual Report.
Philippine Energy Bulletin. 1993. Primary Energy Consumption. July - December 1993: 2.
United States Environmental Protection Agency (USEPA). 1985. Compilation of Air
Pollution Emission. Vol. 1. Office of Air Quality and Standards. Research
Triangle Park. North Carolina, USA.
117
Small-Scale Gold
Mining
4.1.1
INTRODUCTION
4.1.1.1
One of the major concerns of the Philippine mining industry today is the
proliferation of small-scale mines (SSMs) in various parts of the country which started since
the early 80s.
Despite several social and environmental issues, small-scale mining
operations have been considered important because of its contribution to the economy.
Small-scale mining operation exists in both metallic (gold and chromite) and non-metallic
(marble, limestone, clays, sand and gravel). Small-scale mining operation is predominant in
gold mining.
From 1988 to 1994, the Philippines has produced 112.1 metric ton (MT) of gold
bullion from the 34.8 million MT of mill feed. Large-scale mines accounted for the bulk of gold
production with 59.6 MT out of the 25.9 million MT of mill feed. On the other hand, SSMs
recovered 52.5 MT of gold out of 8.9 million MT mill feed (see Appendix Table 4.1.1). Gold
production of SSMs is approximately 47 percent of total gold production during the period.
4.1.1 2
This study focused on the estimation of degradation to the environment by the

small-scale gold mining activities covering the years 1988-1994.
For mining, specifically in the Philippines, gradual and direct discharge of process
wastes to environmental media is a common practice in most small-scale mining operations.
Of significant concern is the estimation of spillage of tailings particularly of small-scale mines
which may result to sedimentation or contamination of the water system with pollutants such
as mercury, cyanide, heavy metals, etc., beyond the absorption level of the natural
environment. This occurs because SSMs oftentimes have no environmental protection
measure or pollution control facility to contain or limit their discharges to environmental media.
The tailings that SSMs generate are disposed either immediately or gradually to the
environment as they treat their ore, which degrades the quality of water bodies. This was
based on the ocular inspection conducted in mining sites such as those in Mt. Diwalwal and
Benguet.
Although mining activities are recognized to affect the air, it was never considered a
major polluter. Mining operation is usually conducted outside urban areas which is beyond
the normal scope of human activities. The air emissions emanating from such activity are
localized and therefore negligible. It was assumed that the sink capacity of the environment
was so high that pollution was safely absorbed. Hence, its maintenance cost was negligible.
Mining activities also affect the soil/land but this study has no estimation of
agricultural run-off from mining operation since the mineral land had been converted solely for
the purpose of mining. Changes in the volume of soil would be accounted for in the soil asset
account.
Similarly, mining activities also affect water but the loss of groundwater that they
effect was not accounted for but will be considered instead in the water resource account.
Only the degradation of surface water was covered in this study.
For the estimation of the physical damage and its monetary valuation, the study
focused on small-scale gold mining operations because, compared with large-scale mining
operations, they do not have an efficient waste management system to contain their
discharges. In addition, no estimate of the physical damage was done for the large-scale
mines due to lack of information. Though, the tailings impounding system of the large-scale
mines do not guarantee a zero spillage to the environment.
118
Theoretically, the violations of national or international standards on effluent should

be valued. However, available standards do not consider the site-specific nature of mining
operations, which should be as much as possible on a location basis and can be set very low,
hence the standards were not considered.
4.1.1.3
The three processes generally being employed by gold miners in the processing of
ore are illustrated in Figures 4.1.1, 4.1.2, and 4.1.3.
1.
Amalgamation Process - a process where the ore is being stage-crushed manually

to an approximate size of -25.4 mm before it is fed to the rod mill for grinding.
During the grinding stage, mercury is being added. After grinding, the amalgam is
then separated from the slurry by discharging it through a wooden launder called
baro-baroto. The amalgam together with the excess mercury is then recovered in
plastic basins which is in turn squeezed through a fine cloth or towel to remove the
excess mercury for re-use. Blowtorching of amalgam is then done to vaporize the
mercury leaving behind the gold sponge with grades ranging from 14-16 carats
(see Figure 4.1.1). This is the most common process adopted by small-scale gold
miners.
2.
Cyanidation Process - a process where the ore is being jaw-crushed to

approximately -25.4 mm. before it is ground in a ball mill in close circuit with a
hydro-cyclone. The cyclone overflow containing 80 percent -0.074 mm material is
thickened to a pulp density of around 46-48 percent solid before it is fed to the
leaching tanks. Pulp pH of 10-12 is maintained throughout the leaching process by
adding lime during grinding. The thickened pulp is then pumped into the leaching
tanks where cyanide is being added to effect the dissolution of gold. After the
dissolution, activated carbon is added to absorb gold particles into the carbon. The
gold particles from the loaded carbon is then stripped with hot caustic cyanide
solution producing a pregnant solution rich in gold.
The pregnant solution
containing gold from the stripping of the loaded carbon is passed through an
electrowinning cell where the gold is recovered at the cathode, which is made up of
stainless steel and steel wool. Precious metals trapped in the steel wool is acidwashed, fluxed and smelted to produce gold bars at 18-22 carat quality (see Figure
4.1.2).
3.
Amalgamation-Cyanidation Process - an integrated process wherein about 30

percent of gold is recovered by using mercury during amalgamation and the
remaining 70 percent by cyanidation. The process is basically amalgamation and
cyanidation process combined. The only difference is that the ground tailings from
amalgamation is the input for cyanidation which eliminates crushing and grinding
costs. Re-pulping the amalgamation tails is done prior to cyanidation, absorption,
stripping and electrowinning. Blowtorching of the amalgam is then done to recover
gold. The metals trapped in the steel wool are acid washed, fluxed and smelted to
produce gold bars (see Figure 4.1.3).
119
Gold Ore
MANUAL
CRUSHING
NaOH + H O (1%)
4 Hours
Mercury (0.2 kgs./MT)
AMALGAMATION/
ROD MILLING
AMALGAM
SEPARATION
Tailings
Amalgam
Borax
Mercury Vapor
BLOWTORCHING
Sponge Gold = 14 to 16 carats
FIGURE 4.1.1
AMALGAMATION PROCESS
120
Gold Ore
CRUSHING
Lime (2-5 lbs/MT)
Water
GRINDING
THICKENING
NaCN (2 lbs/MT)
LEACHING
(46-48% Solid)
Air
CARBON
ADSORPTION
Tailings
Carbon (20-30 gm/l)
NaCN + NaOH
(5-10% Solution)
Loaded Carbon
CARBON DESORPTION/
STRIPPING
Stripped Carbon
Pregnant Solution
ELECTROWINNING
Loaded Steelwool
Slag
Barren Solution
Fluxes
SMELTING
Gold Bar = 18 to 22 carats
FIGURE 4.1.2
CYANIDATION PROCESS
121
Gold Ore
AMALGAMATION
PROCESS
Amalgam
BLOWTORCHING
AMALGAMATION TAILS
Lime (2-5 lbs/MT)
Mercury
Vapor
Water
RE-PULPING
(46-48% Solids)
Sponge Gold =
14 to 16 carats
NaCN (2 lbs/MT)
LEACHING
Air
Carbon (20-30 gm/l)

CARBON
ADSORPTION
Tailings
Loaded Carbon
NaCN + NaOH
(5-10% Solution)
CARBON DESORPTION/
STRIPPING
Stripped Carbon
Pregnant Solution
ELECTROWINNING
Loaded Steelwool
Slag
Barren Solution
Fluxes
SMELTING
Gold Bar = 18 to 22 carats
FIGURE 4.1.3
AMALGAMATION-CYANIDATION COMBINED PROCESS
122
The operations of mining firms have a negative impact on the environment. The
highly visible negative impact is sedimentation due to mine tailings. There are accidental
spillage of mine tailings to rivers and streams. Aside from this, mining firms are accused of
deliberately leaking their tailings to nearby agricultural lands, which clog and destroy irrigation
systems and deprive rice fields of their productivity. They are also accused of leaking their
tailings and dumping toxic wastes to water bodies, which deteriorate their quality and kill
marine life. Open pit mining in some cases, entails deforestation, which may induce soil
erosion. On the other hand, underground mining operation can effect the loss of water from
streams and springs.
4.1.1.4
Treatment Process and Environmental Enhancement
In their effort to enhance and protect the environment, it has been an integral part
of the operation of most major mining companies to undertake environment protection
measures in order to minimize if not completely eliminate negative environmental impacts.
Some of these measures are the construction of tailings disposal system, slope stabilization
and backfilling of subsidence area and reforestation of mined out areas. Small-scale miners
are also required by law to undertake similar environmental protection measures. Oftentimes,
they are found to be in violation due to their migratory nature, lack of technical capability and
the added cost that such environment protection measures or enhancement would entail.
In terms of environment enhancement, small-scale miners have their own share.
Those who were allowed to operate within the claims of large-scale mining firms are also
undertaking reforestation activities where seedlings are usually provided by large-scale
mining firms. Several hectares of previously denuded forests have been reforested that they
look like virgin forests from afar.
4.1.2
SOURCES AND METHODS
4.1.2.1
Data Sources
The field reports of the Mines and Geosciences Bureau (MGB) on the small-scale
gold mining operations provided the basic source of information. These were consolidated by
Santelices (1997) in his paper for the ENRA-IEMSD entitled Estimation of Production, Tons
Mined and Tailings Generated by the Small-Scale Gold Mining Activity, 1992.
In the absence of information from other mining companies, the 1982 Semestral
Report on Mine Waste and Tailings Generated from Itogon-Suyoc Mines, Inc. (ISMI) and the
MGB files on Tailings Disposal System of Operating Metallic Mines provided the basic
information on the cost of tailings impoundment for monetary valuation. ISMI exhibits similar
production patterns as that of a typical small-scale gold mine. Refer to Appendix Table 4.1.2
for estimation details.
The IPIN for public construction from the National Accounts compiled by the NSCB
were utilized to establish the current price of tailings impoundment since the construction of
tailings dam is similar to a civil work.
4.1.2.2
4.1.2.2.1
Physical Estimation
Estimation of tailings believed to have been discharged to environmental media

was based on the amount of mill feed, milled or heap-leached. Mill feed might include
stockpile inventory and/or might exclude a portion of ore mined in the period under
consideration.
123
Santelices (1997) estimated the tailings generated by the small-scale gold mining
operations using the following assumptions:
In the estimation of the tailings generated, the solid and liquid
portion were segregated from each other. A 40:60 solid to liquid ratio by
weight was used. This was based on the field observation and actual
experience during laboratory testing. The liquid portion is the amount of
water used in the processing. Since gold processing by small-scale miners is
not a closed system, it was presumed that all the water used form part of the
tailings generated.
In all the estimation process, the two-product concentration process
was adopted. This means that from the original ore mined/processed, only
two (2) products were produced: the gold values and the tailings. However,
due to the almost negligible amount of gold values relative to the mined ore
by weight, the weight of the mined ore was considered to be also the weight
of the solid portion of the tailings.
4.1.2.2.2
Monetary Estimation
Valuation of environmental degradation caused by mine tailings that have been

discharged to environmental media was estimated as the cost that would have been incurred
in impounding the tailings. Data required was only available from the 1982 Semestral Report
on Mine Waste and Tailings Generated from ISMI to the MGB and the MGB files on Tailings
Disposal System of Operating Metallic Mines. The 1982 estimates were extrapolated to
1988-1994 based on the trends of the IPIN of expenditures on public construction in the
published national accounts estimate (see Appendix Table 4.1.2).
The value of environmental degradation caused by the economic activity of smallscale gold mining was estimated by multiplying the amount of tailings generated by the
maintenance cost per unit. Thus,
Environmental Degradation Cost = Amount of Tailings Generated x
Maintenance Cost per unit
4.1.3
RESULTS
4.1.3.1
Physical Estimate
The tailings generated by the small-scale gold mines in 1988 was estimated at 2.7
million MT (see Table 4.1.1). The amount of tailings generated was biggest in 1994 at 4.6
million MT out of the 1.8 million MT of mill feed which produced 10.8 MT of gold.
124
TABLE 4.1.1
GOLD ORE TREATED, GOLD PRODUCTION AND TAILINGS

GENERATED BY SMALL-SCALE GOLD MINING INDUSTRY, IN METRIC
TONS, 1988-1994
Gold Ore Treated
(MT)
Year
4.1.3.2
Gold Production
(MT)
Tailings
Generated (MT)
1988
1,075,564
6.34
2,688,909
1989
1,275,748
7.52
3,189,369
1990
812,611
4.79
2,031,526
1991
1,357,178
8.00
3,392,945
1992
1,158,691
6.83
2,896,727
1993
1,399,590
8.25
3,498,975
1994
1,830,494
10.79
4,576,235
Monetary Estimate
The amount of effluents in 1988 valued at maintenance cost, amounted to P 132

million pesos in 1988 (see Table 4.1.2). In 1994, the environmental cost for the amount of
tailings generated was valued at P 408 million, the biggest for the period under observation.
TABLE 4.1.2
Year

EVA1/ of
Gold
Mining
Industry
IN
GVA of
Gold
Mining
Industry
Consumption
of Fixed
Capital
NVA of
Gold
Mining
Industry
[1]
[2]
[3] = [1] [2]
4a
4b
[4]=4a*4b
[5] = [3]
[4]
[6]=[4]/[1]
1988
7,338
361
6,977
2,688,909
49.18
132
6,845
1.80
1989
6,454
440
6,014
3,189,369
57.41
183
5,831
2.84
1990
7,395
481
6,914
2,031,526
67.56
137
6,777
1.85
1991
8,134
618
7,516
3,392,945
80.64
274
7,242
3.37
1992
6,884
1,037
5,847
2,896,727
84.32
244
5,603
3.54
1993
6,636
952
5,684
3,498,975
84.15
294
5,390
4.43
1994
6,809
915
5,894
4,576,235
89.09
408
5,486
5.99
1/
Environmental Degradation caused by

Small-Scale Mining (SSM) Industry
Total cost of
Tailings
Cost Of
Tailing
Generated
Tailings
(in MT)
Impoundment Impoundment
(in Million P)
(P/MT)
(EVA),
Ratio
environmental
degradation cost
to the
GVA of
Gold
Mining
Industry
Adjusted with the environmental degradation cost caused by SSMs only.
125
4.1.3.3
From 1990 to 1994, the environmental degradation cost caused by small-scale gold
mining industry gradually increased its share to the total GVA of gold mining industry at
current prices. Adjusting the GVA of gold mining by the consumption of fixed capital (CFC)
and the result by the environmental degradation cost caused by SSM industry, the NVA and
EVA, respectively, showed similar trend from 1988-1993 (see Figure 4.1.4). A slight deviation
was recorded in 1994.
Environmental
Degradation Cost
9,000
8,000
7,000
6,000
5,000
Depreciation
4,000
EVA
3,000
2,000
1,000
0
1988
FIGURE 4.1.4
4.1.4
1989
1990
1991
1992
1993
1994
SMALL SCALE GOLD MINING: EVA, DEPRECIATION AND

ENVIRONMENTAL DEGRADATION COST, IN MILLION PESOS (AT
CURRENT PRICES), 1988-1994
RECOMMENDATIONS
To facilitate the estimation of environmental degradation (both in physical and

monetary terms) caused by the economic activities of the small-scale gold mining sector, data
required should be included in administrative reports being accomplished by mining firms on a
regular basis.
Data items needed in environmental accounting that are included already in
existing administrative reports should have more details.
126

GOLD ORE TREATED AND GOLD PRODUCTION BY TYPE, IN METRIC TONS, 19881994
Gold Ore Treated
Gold Production
Year
Total
Large
Scale
Small
Scale
Large Scale
Small Scale
1988
3,489,876
1,075,564
4,565,440
9.18
6.34
15.52
1989
3,702,840
1,275,748
4,978,588
9.48
7.52
17.00
1990
3,683,095
812,611
4,495,706
8.36
4.79
13.15
1991
3,862,001
1,357,178
5,219,179
7.85
8.00
15.85
1992
4,636,538
1,158,691
5,795,229
8.98
6.83
15.81
1993
3,762,575
1,399,590
5,162,165
7.99
8.25
16.24
1994
2,738,973
1,830,494
4,569,467
7.74
10.79
18.53
Total
Source: Santelices, 1997

Notes:
1. Excludes ore treated and production of gold panners.
2. 1992 small-scale production data were derived from the study of Santelices (1997).
3. Small-scale production data for other years were computed using the proportion of the 1992 ore
treated with the panned gold data of the Central Bank also for the same year adopted by the above
mentioned study.
127
APPENDIX 4.1.2
ESTIMATION OF MAINTENANCE COST OF IMPOUNDING TAILINGS BASED ON 1982
DATA
Data from the 1982 Semestral Report on Mine Waste and Tailings Generated of ISMI
to the MGB and the MGB files on Tailings Disposal System of Operating Metallic Mines were
used to estimate the maintenance cost of impounding tailings generated by small-scale gold
mining industry.
The maintenance cost per unit was derived by dividing the total maintenance cost by
the amount of tailings generated reported in the 1982 Semestral Report of ISMI. Thus,
Maintenance Cost Per Unit =
where,
hence,
Total Maintenance Cost1982

------------------------------------------------Amount of Tailings Generated1982
Maintenance cost1982
P2,239,390.00
Tailings generated1982
104,443 MT
Maintenance cost per unit1982
P21.44 per MT
To update 1982 maintenance cost per unit to the years under observation, the growth
rates of the IPIN of public construction were used. IPIN for the years 1982-1994 were taken
from Table 37 of the National Accounts publication of the NSCB.
The total maintenance cost was computed by summing the annualized construction
cost of the tailings dam and the average annual operating cost reported by ISMI to MGB.
Thus,
Maintenance Cost = Annual Construction Cost + Ave. Annual Operation Cost
where,
Annualized construction cost of the tailing dam
P1,189,390
P1,050,000
hence,
1982 Average annual operation cost

of ISMI tailings dam
Maintenance Cost
P2,239,390
To annualize the construction cost, the total construction cost was divided by the
expected life of the tailings dam of ISMI constructed in 1982. Based on the MGB files on
Tailings Disposal System of Operating Metallic Mines, ISMI constructed its tailings dam in
1982 at the cost of P21,409,014. The said dam has an annual average operating cost of
P1,050,000 and was reported to have a remaining life of only 2.9 years in 1997. Hence, the
estimated life of the said dam was assumed to be 18 years. Thus,
Total Construction Cost
Annual Construction Cost = -------------------------------------------Expected Life of Tailings Dam
Based on ISMI Reports:
hence,
Total construction cost1982 = P21,409,014

Life of the tailings dam
= 18 years
Annual Construction Cost = P1,189,390
128
REFERENCES
Benguet Corporation. 1988-1994. Annual Report.

De Vera, Benjamin M. 1995. An Overview of Mining Environment Statistics at the Mines
and Geosciences Bureau. MGB, Manila.
Itogon-Suyoc Mines, Inc. 1988-1994. Annual Report.
Itogon-Suyoc Mines, Inc. 1984. Semestral Report on Mine Waste and Tailings Generated
Manila Mining Corporation. 1988-1994. Annual Report.
Mines and Geosciences Bureau. 1988-1994. Minerals News Service. Department of
Environment and Natural Resources. Quezon City, Philipine4s.
_____________________________. 1996. Field Reports on Small-scale Mining Areas.
Department of Environment and Natural Resources, Quezon City, Philippines.
_____________________________.
Operating Metallic Mines.
General Information on Tailings Disposal System of

Department of Environment and Natural Resources.
Santelices, E.B., 1997. Estimation of Production, Tons mined and Tailings Generated by the
Small-scale Gold Mining Activity. Unpublished.
Velasco, Rodolfo Jr. 1996. Small-scale Mining in the Philippines. Mines and Geosciences
Bureau, Department of Environment and Natural Resources.
Quezon City,
Philippines..
129
Electricity Generation
5.1
INTRODUCTION
5.1.1
Electricity is an important contributor to the expansion of the Philippine economy.

An internal study made by the National Power Corporation (NPC) has proven the direct
correlation between economic growth and the increase in electricity demand. The 1995-2005
Philippine Power Development Program, thus, was made to address the expected increase in
demand as the country pursues its industrialization thrust.
Generation of electricity in the country involves two types of power plants: the
thermal power plants and the hydroelectric power plants. Hydroelectric power plants make
use of water in generating electricity while thermal power plants make use of fossil fuel such
as bunker oil, diesel oil, coal and geothermal to generate electricity. There were more than
one hundred power plants in the country in 1995, including Independent Power Producers
(IPPs). IPPs were fast-track solutions to the energy crisis experienced by the country in
1993. Owned by private business (local and foreign) groups, the IPPs were constructed
under the build-operate-transfer (BOT), build-operate-own (BOO) and rehabilitate-operatemaintain (ROM) schemes. These IPPs sell their generated electricity to the NPC. The
combined generating facilities of the NPC and the IPPs has an effective reserve power
capacity of 1,000 MW.
5.1.2
Emissions from the various power plants are estimated, and the services provided
by the environment as receptacle of wastes generated by the power plants are quantified and
assessed. An attempt was made to modify the emission factors used by ENRAP II and III for
this sector by incorporating existing knowledge about combustion relations and actual
Philippine data into the emission estimation system.
This study only assesses the emissions from fossil fuel-fired thermal power plants,
particularly those that utilise oil and coal. The emissions of major pollutants, namely NOx,
SOx, total suspended particulate or PM, CO, CO2 and VOC, are estimated. The absence of
necessary data inputs for valuation limited this study to the estimation of emissions in physical
terms only.
5.1.3
Production Process
Although at the point of end use, electricity has relatively few environmental and
health consequences, it is the generation of electricity which is one of the world's major
environmentally damaging activities. While the energy sector contributes 49 percent of
greenhouse gases, electricity generation alone produces more than 25 percent of energyrelated carbon dioxide emissions (Munasinghe, 1995). The extent and nature of the impacts,
however, differ among various types of fuel or energy sources.
5.1.3.1
To Air
In the case of oil and coal-fired power plants, emissions include SO2, CO, NOx,
hydrocarbons, and polycyclic organic matter. In the case of coal-fired plants, additional
pollutants include fly ash, trace metals, and radionuclides. The presence of these pollutants
results in significant public health risks, and leads to increased incidence of respiratory
diseases, toxicity and cancer.
The discussion in this section was based on Munasinghe, 1995.
130
The contribution of fossil fuels to carbon dioxide emissions depends on the carbon
content of the fuel. Fuel oil emits 87.7 percent as much CO2 as coal, while natural gas emits
only 58 percent for the same thermal content.
Without control or treatment, coal emits more PM, SO2, and NOX than any other
fuel. While PM emissions in the case of natural gas are negligible, coal emits almost 10
percent of its oil equivalent in weight as ash and other matter.
Sulfur dioxide (SO2) emissions depend on the sulfur content of the fuels while
emissions of NOX are not significantly different between fuels, with natural gas emitting only
two-thirds that of coal.
5.1.3.2
a.
To Water
Thermal or waste heat
The amount of cooling water required to carry away the waste heat from power
plants already exceeds the amount withdrawn for any other purpose. In a once-through
process, cooling water is extracted from some source, e.g., river, passed through the
condenser where its temperature is increased by anywhere from 10 to 30F, and returned to
the source body of water at this higher temperature. Many of the adverse effects to aquatic
life associated with thermal pollution stem from the increased rate of metabolism that occurs
as temperature increases. This causes an increased demand for oxygen by the organisms.
At the same time, the dissolved oxygen (DO) in the water decreases with increasing
temperature. Thus, as the organisms demand for oxygen increases, the amount of oxygen
available decreases. A second factor that decreases the dissolved oxygen is the increased
rate of decomposition of wastes that occurs at higher temperatures.
For a fossil-fired plant, 40 percent of the input energy is converted to electric
energy, 10-15 percent is lost to the air by the stack gases and boiler, and the remaining 45-50
percent is removed by the cooling water. For a nuclear power plant, 33 percent is converted
to electric energy, about 3-5 percent is lost to the air, and the remaining 62-64 percent ends
up in the cooling water. While the nuclear plant is only 7 percent less efficient, its cooling
water must remove about 60 percent more waste heat, and this is why thermal pollution is
most often associated with nuclear plants.
b.
Effluents
The principal type of effluents from power plants are the mineralized liquors from
water preparation plants, wastewater from hydro-ashing systems (where solid fuel is burnt),
wash water from the heating surfaces (air heaters and economizers) of boilers operating on
sulphuric fuel oil, water from chemical treatment or cleaning of thermal power plant and
effluents contained with oil products. The quantity and quality of these effluents are
determined by the type of power station, its capacity, the kind of fuel used, the composition of
the original water, the types of water preparation in use, and various other factors. These
pollutants to water and degradation to environment caused by the generation of electricity are
not estimated in this study.
5.1.3.3
To Land
Solid waste (from the fly ash) disposal problem is not trivial, and the problem of
disposal sites needs to be addressed. Disposal of solid wastes leads to health risks
associated with leachate and groundwater contamination.
2
3
The information in this section was based on Masters, 1984.

The discussion in this section was based on Abdullaev, et al., 1992.
131
5.1.4
Treatment Process 4
5.1.4.1
Air Pollution Control Facilities
As of 1992, air pollution facilities installed in some of the power plants in the country
were Electrostatic Precipitators (ESP), Dust Collectors and Tall Smokestack.
a.
Electrostatic Precipitators (ESP)
The basic PM collection process taking place in an ESP is as follows: (1)

suspended particles are given an electric charge; (2) the charged particles then migrate to a
collecting electrode of opposite polarity while subjected to diverging electric field; and (3) the
collected particles are then dislodged from the collection electrodes.
b.
Dust Collectors
Dust collection devices collect dusts from flue gases. Most of these dusts are noncombustible residual particles from combustion processes. Dust collection equipment are
mostly used in oil-based and coal-fired power plants.
c.
Tall Smokestack
Tall smokestack is recommended for stationary sources of air pollution. Tall

smokestack cause air pollutants contained in the flue gas to easily disperse in the
atmosphere.
5. 2.
SOURCES AND METHODS
5.2.1
Data Sources
In the absence of information on environmental protection costs, a questionnaire

was designed by the TWG on Electricity and submitted to the NPC for validation. The
questionnaires were distributed by the NPC to selected power plants under its supervision
and to an IPP in September 1996. Responses from 15 power plants were collected in
November 1996. The data compiled from the inquiry were used in the study. Emission factors
were derived from Handbook of Emission Factors and OECD Secretariat. Annual reports of
NPC were utilized for gross generation, installed capacity and date of operation of power
plants.
5.2.2
Estimation Methodology 5
5.2.2.1
Physical Estimation
For proper combustion, the fuel must be mixed rapidly and completely with
sufficient combustion air, and must be burnt at a sufficiently high temperature. If not, part of
the fuel will burn incompletely, and consequently, the flue gases will contain undesirable
combustion products.
In this study, fossil fuel-fired thermal plants are grouped into bunker oil fuel-based,
diesel oil fuel-based and coal-fired power plants. For 1995, 25 bunker fuel-based, 33 dieselbased and 5 coal-fired power plants are included in the study. Emissions from these plants
consisting of SOX, NOX, PM, CO, CO2 and VOC are estimated.
4
5
Other treatment processes and air pollution control facilities are discussed in Annex 5.1.2.
This section was culled from the Handbook of Emission Factors, Part 3 (1988).
132
Total emissions (m) of SOX, NOX, and PM are calculated by multiplying the
emission rate (in g/hr) by the number of operating hours of the plant (Eq. 1). The emission
rate is estimated by multiplying the emission factors (EF, in g/GJ) by the load of the power
plant expressed as N, in GJ/hr. (Eq. 2). Emission factors are given in Tables 5.1.2, 5.1.3, and
5.1.4. Load (N) is calculated as the product of net heat of combustion (Hc) and the actual
average fuel consumption rate (
F
) (Eq. 3). An illustration of the procedure in formula form
t
is given below.
a.
Total emissions (m), in Metric Tons (MT)

m =
m&
operating hours
Eq. 1
where:
& = emission rates defined as the mass of pollutant emitted per unit of time. It is
m
usually expressed as gram per hour, g/hr, (see Eq. 2).
operating hours
b.
Emission rate,
= 7,680
= 365 - 45 days
= 320 days x 24 hours (45 days is the average number of days
wherein a power plant undergoes rehabilitation)
& , in g/hr
m
& = EF N
m
Eq. 2
where:
EF = the emission factor in grams per gigajoules (g GJ ). It is the ratio between
the quantity of a pollutant emitted and some units of the activity involved. For
combustion processes the unit of activity is the energy input (see Tables 5.1.1
and 5.1.2 and Appendix Tables 5.1.1 and 5.1.2 for details of estimation).
-1
N
c.
= the actual load or the amount of a fuel energy supplied per unit of time. It is
expressed as GJ/hour (see Eq. 3).
Load (N): GJ/hour
N = Hc x
F
t
Eq. 3
where:
Hc
= the net heat of combustion - net heat value or the net calorific value of fuel.
F
= the actual average fuel consumption per unit time. F is the mass of fuel and
t
t in hours. In this study, actual fuel consumption is calculated as gross
generation multiplied by the fuel requirement per Megawatt Hour generated.
For NOX and PM, some adjustments were made on the emission factors (see Eq. 2).
These changes are given in the discussions for each pollutant.
133
5.2.2.1.1
Sulphur Oxides (SOx)
Many solid and liquid fuels contain sulphur, which is almost quantitatively oxidised
during combustion. SO2 is the major product (over 95 percent). In addition, some SO3 (1-5
percent) and particulate sulphate (1-3 percent) may be formed. During coal combustion, a
minor quantity of sulphur may remain in the bottom ash or may become part of the fly ash.
For the estimation of total emission of SOx, Eqs. 1, 2 and 3 as given above were
used. The value of Hc used in Eq. 3 is given in Table 5.1.1. For bunker oil fuel, Hc for other
distillate oil (41 MJ/kg) is used and for diesel oil emissions that of diesel oil (42.5 MJ/kg) is
used. For coal, a combination of Hc for hard coal (27 MJ/kg) and brown coal (18 MJ/kg) is
used. For an illustration on how the equations were applied, see Appendix Tables 5.1.1 and
5.1.2.
TABLE 5.1.1
Fuel
Hard coal
Anthracite
Bituminous
Subbituminous
brown coal
(lignite)
lignite briquettes
diesel oil
other distillate oil
residual oil
FUEL CHARACTERISTICS
Hc
(MJ/kg of fuel)
(g/kg of fuel)
27 *
27 31
24 31
18 24
5 18
20
42.5
42.5
41
4
3
4
15
EFSO2
(g/GJ)
0.05
540
730
*per kg standard coal equivalent: 29.3 MJ/kg

Source: Handbook of Emission Factors, Part III.
5.2.2.1.2
Nitrogen Oxides (NOx)
Contrary to SOx, emissions of NOx primarily depend on combustion conditions.,

hence some adjustments were introduced in the load and emission factor.
& ) is derived using an adjusted emission factor (AEF)

In Eq. 1, emission rate ( m
instead of EF. AEF refers to the emission factor by type of fuel, installation (e.g., boiler,
burner) as given in Table 5.1.2, adjusted with a load correction factor.
AEF = EF x load correction factor
Eq. 4
134
TABLE 5.1.2
Fuel
EMISSION FACTORS: NOx, PM, SOx
Unit/Installation
Hard coal
Lignite
Pulverized (pp)
Distillate Oil
Cylindrical boiler
Gas turbine
Diesel engine
Residual Oil
Water tube boiler (pp)

Grate firing, overfeed stoker
(pp, in U.S.A.)
NOx
(g/GJ)
PM
(g/GJ)
PM
[<10
g]
(g/GJ)
380
300
15
100
280
1,200
85*
1/
450
6
20
30
830
1,200
290
2/
20
Flue Gas
Production
(m3/GJ)
230
110
Grate
firing,
underfeed
stoker
(pp,
in
U.S.A.,
Netherlands)
Natural Gas
Water tube boiler (pp)
160
320
130*
Note:
pp : power plant
*
: applies to full load, and subject to load correction factors
1/ Used for Diesel Oil Fuel-based power plants
2/ Used for Bunker Oil Fuel-based power plants
Source : Handbook of Emission Factors, Part III (1988).
A load correction factor is defined as the load factor (Eq. 5) multiplied by the load
correction factor given in Table 5.1.3. Load factor (L) is estimated as the ratio between actual
fuel consumption rate and the nominal fuel consumption rate.
TABLE 5.1.3
LOAD CORRECTION FACTORS
Fuel Type
Load Correction Factor
solid fuels
liquid fuels
gaseous fuels
1 - 0.225 (1 - L)
1 - 0.45 (1 L)
(1 - L)
0.16
Source: Handbook of Emission Factors Part III, 1988.
actual fuel consumption rate

nominal fuel consumption rate
Eq. 5
where:
Nominal Fuel Consumption rate = (IC * 1000) / 7680 (hours)
IC = Installed Capacity
Estimated Average Nominal Fuel Consumption per kilowatt:
135
For bunker-fuel based plant:1,222.25 kg/hr (based on the Sucat Thermal Plant)
For diesel-fuel based plant:7,130.67kg/hr (30MW diesel fuel-based power plant)
Actual fuel consumption rate is estimated in the same way as in the estimation of
SOx. Load (N) is as in the general formula in SOx (Eq. 3). Hence, emission rate is
calculated, as in Eq. 2, by replacing EF with AEF (calculated in Eq. 4). For an illustrative
example on how the formulas were applied, refer to Appendix Table 5.1.2. The details of
NOx emissions are found on Appendix Tables 5.1.3, 5.1.5 and 5.1.7.
5.2.2.1.3
Particulate Matter (PM)
The same procedure adopted in NOx (Eqs. 1, 4 and 5) is used for the calculation
of the PM emissions. The only exception is the load correction factor (CF) which is fixed at
0.76 (Handbook of Emission Factors) for liquid fuels. For the emission factors refer to Table
5.1.2. The detailed emissions are tabulated on Appendix Tables 5.1.4, 5.1.6 and 5.1.7.
5.2.2.1.4
Carbon Monoxide (CO) and Carbon Dioxide (CO2)
Carbon monoxide and organic compounds are products of incomplete combustion.

This occurs if excess air is too low, e.g., during start-ups, temporary upsets, and with
combustion conditions during which fuel particles (coal particles/oil droplets) leave the flame
prematurely. Emissions of these substances can be reduced by combustion at a high
temperature and/or on long residence times. The emission factors for CO are lower than
those for CO2 because the emission of CO is largely converted in the atmosphere into CO2
within a short period of time. The heat value or net heat of combustion and carbon content of
the fuels are key assumptions used to derive the emission factors.
Table 5.1.4 shows the emission factors for CO, CO2 and methane (CH4) by source
or major end-use and fuel. The EFs are presented in grams of pollutant per giga-joule cf.
energy use. The same procedure adopted for the estimation of SOx is used (Eqs. 1, 2 and 3.
Appendix Tables 5.1.4, 5.1.6 and 5.1.7 provide the details of the estimation.
TABLE 5.1.4
EMISSION FACTORS FOR ORGANIC COMPOUNDS (IN G/GJ INPUT)
Fuel Type
Unit
(Site/installation)
CO2
CO
CH4
Residual Oil
1/
Utility / boiler
78,100
15
Distillate Oil
2/
Utility / boiler
73,800
15
Spreader stoker
Pulverised coal
Fluidized bed
94,200
94,200
94,200
105
10
NA
1
1
1
Hard Coal
Brown Coal
105,400
1/ Used for Bunker Fuel-based power plants

2/ Used for Diesel Fuel-based power plants
Source: OECD Secretariat (1994).
136
5.2.2.1.5
Volatile Organic Compounds (VOC)
For the estimation of VOC emissions the general formula used is:
Total emissions (in MT) = EFC * EF
Where
EFC =
EF =
Estimated Fuel Consumption, in kg.

Emission Factor in kg/MT
To be more specific, for:
Bunker-fuel based plant:

Total emissions (in MT) = EFC (kg) * 0.04 gVOC/kg. oil / 1000
Coal-fired power plants:

Total emissions (in MT) = EFC (kg) * 0.15 kg/MT / 1000
The details of the estimation are shown in Appendix Table 5.1.8.
5. 3
RESULTS
5.3.1
Physical Estimates
5.3.1.1
Installed Capacity and Gross Generation
The gross energy generation of electricity from fossil fuel based power plants are
given in Table 5.1.5. Most of the thermal power plants in the country are fuelled by bunker oil
or residual oil. The gross energy generated by bunker oil-based plants was 8,789 GWh in
1988, and increased to 11,659 GWh in 1992, but decreased to 9,201 MWh in 1995 (see
Figure 5.1.1). Diesel or distillate oil is used as fuel by some small island grids and power
barges as well as for start-up of the other power plants. In response to the power crisis in the
early 1990s, a number of these power barges have been installed. The gross generation of
diesel oil-based power plants was only 352 GWh in 1988, and increased to 9,077 GWh in
1995. There are only five coal-fired power plants in the country: Calaca I and II in the Luzon
Grid, and the Naga I and II and ACMDC in the Visayas Grid. Their gross generation
averaged about 2,269 GWh for the period 1988-1995.
TABLE 5.1.5
GROSS ELECTRICITY
GIGAWATTS, 1988-1995
GENERATION
OF
POWER
PLANTS,
IN
Type of fuel
1988
1989
1990
1991
1992
1993
1994
1995
Bunker
8,789
8,933
9,609
11,288
11,359
9,714
9,587
9,326
362
724
1,596
1,346
1,856
2,532
6,904
9,077
Coal
2,559
2,536
1,873
2,091
2,155
2,459
1,820
2,659
Hydro
6,212
6,473
6,047
5,077
4,274
4,987
5,768
6,239
Geothermal
4,842
5,316
5,470
5,761
5,693
5,644
6,350
6,102
22,764
23,982
24,595
25,563
25,337
25,336
30,429
33,403
Diesel
TOTAL
137
In 1988, of the total electricity generated in the country, those fuelled by fossil fuels
such as bunker oil, diesel and coal account for a little more than half. However, in 1995 the
share increased to about 63 percent. Other major plants are fuelled by geothermal steam
and hydropower.
Bunker
Diesel
Coal
12,000
10,000
8,000
6,000
4,000
2,000
0
1988
FIGURE 5.1.1
5.3.1.2
1989
1990
1991
1992
1993
1994
1995
GROSS ELECTRICITY GENERATION OF POWER PLANTS, IN

GIGAWATT HOURS, 1988-1995
Emissions From Bunker Oil Fuel-Based Power Plants
Table 5.1.6 provides the estimated fuel consumption used for the estimation of
emissions of bunker oil fuelbased power plants. This is based on the average fuel
consumption at the designed installed capacity of the plant, using the Sucat Thermal Plant as
the basis. Since these power plants are fired by fossil fuels, they produce a high volume of
CO2 emissions. The other major pollutants are SOx and NOx. For bunker oil fuel-based
power plants, next to CO2, the biggest emission was estimated as SOx at about 55 million MT
annually (see Table 5.1.7). Following SOx, is NOx at about 13 million MT every year. PM
and CO each contributed a little over a million MT annually. VOC is small compared to other
pollutants at about 80,000 MT every year (see Figure 5.1.2). The details of the computed
emissions generated by Bunker Oil-Fuel Based Power Plants are shown in Appendix Tables
5.1.3, 5.1.4 and 5.1.8.
138
TABLE 5.1.6
Type of
fuel
ESTIMATED FUEL CONSUMPTION (EFC) OF POWER PLANTS, IN

MILLION METRIC TONS, 1988-1995
1988
1989
1990
1991
1992
1993
1994
1995
Bunker
1/
1,821
1,847
1,819
2,102
2,208
1,910
1,727
1,676
Diesel
2/
297
123
493
328
402
652
1,836
2,414
10,082
10,005
7,388
8,249
8,502
9,698
7,179
10,487
Coal
1/ EFC (bunker) = gross generation * annual fuel requirement per MW generated by the Sucat Thermal
Plant (1,222,250 kg/hour)
2/ EFC (diesel) = gross generation * annual fuel requirement per MW generated
TABLE 5.1.7
Year
TOTAL EMISSIONS FROM BUNKER OIL FUEL-BASED POWER PLANTS,

IN THOUSAND METRIC TONS, 1988-1995
NOx
SOx
15,244
15,460
15,143
16,880
17,915
14,523
12,696
12,106
1988
1989
1990
1991
1992
1993
1994
1995
PM
CO
1,135
1,151
1,133
1,310
1,376
1,190
1,076
1,044
54,642
55,415
54,558
63,064
66,232
57,287
51,814
50,278
CO2
VOC
73
74
73
84
88
76
69
67
5,832,262
5,914,834
5,823,280
6,731,241
7,069,313
6,114,574
5,530,469
5,366,518
1,120
1,136
1,118
1,292
1,358
1,174
1,062
1,030
5,366,518,410
CO2
50,278,299
SOx
12,105,931
NOx
1,044,444
PM
1,030,701
CO
67,037
VOC
1988
FIGURE 5.1.2
1989
1990
1991
1992
1993
1994
1995
BUNKER OIL FUEL-BASED POWER PLANTS: EMISSIONS, 1988-1995
139
5.3.1.3
Emissions From Diesel Oil Fuel-Based Power Plants
The gross energy generation and the estimated average fuel consumption of the
different diesel oil-fired power plants are shown in Table 5.1.6. The nominal load is based on
the average fuel consumption at the designed installed capacity of the plant, using the Bataan
Gas Turbine Power Plant as the basis. The detailed computed emissions generated by
Diesel Oil-Based Power plants are shown in Appendix Tables 5.1.5 and 5.1.6. Table 5.1.8
presents the volume of major pollutants emitted by these power plants. Unlike the bunker oil
fuel-based power plants, diesel oil fuel-based plants emit more NOx than SOx. The sudden
fluctuations of the emissions of this type of power plant is closely related to the dramatic
increases in the electricity generated from these plants (see Figure 5.1.1). As with bunker oil
fuel-based plants CO2 emissions are of the highest magnitude, among the air pollutants (see
Figure 5.1.3).
TABLE 5.1.8
TOTAL EMISSIONS FROM DIESEL OIL FUEL-BASED POWER PLANTS,

IN THOUSAND METRIC TONS, 1988-1994
Year
NOx
1988
1989
1990
1991
1992
1993
1994
1995
SOx
325
1,409
6,970
4,214
6,296
8,150
25,790
36,609
239
983
3,945
2,625
3,699
5,217
14,688
19,312
PM
CO
19
79
319
212
299
421
1,186
1,559
19
78
314
209
295
416
1,170
1,539
CO2
93,720
385,489
1,546,726
1,029,177
1,450,314
2,045,470
5,758,451
7,571,158
7,571,157,707
CO2
19,311,582
SOx
36,609,317
NOx
1,559,371
PM
1,538,853
CO
1988
FIGURE 5.1. 3
1989
1990
1991
1992
1993
1994
1995
DIESEL OIL FUEL-BASED POWER PLANTS: EMISSIONS, 1988-1995
140
5.3.1.4
Emissions From Coal-Fired Power Plants
Figures 5.1.1 and Table 5.1.6 show the gross electricity generation and the
estimated fuel consumption of coal-fired power plants. The details of the computed emissions
generated by Coal Fired Power Plants are shown in Appendices 5.1.7 and 5.1.8. The
estimated average fuel consumption rate is 238 kg of coal per hour to generate 1 MW of
energy (based on the Calaca Coal-Fired Power Plant).
TABLE 5.1.9
Year
TOTAL EMISSIONS FROM COAL-FIRED

THOUSAND METRIC TONS, 1988-1995
NOx
SOx
PM
CO
POWER
PLANTS,
CO2
IN
VOC
1988
62,676
115,042
5,677
2,271
22,408,992
1,514
1989
62,130
114,039
5,628
2,251
22,213,600
1,501
1990
45,880
84,214
4,156
1,662
16,403,884
1,108
1991
51,223
94,021
4,640
1,856
18,314,176
1,237
1992
52,794
96,904
4,782
1,912
18,875,916
1,275
1993
60,227
110,547
5,455
2,182
21,533,277
1,455
1994
44,584
81,835
4,038
1,615
15,940,488
1,077
1995
65,124
119,536
5,899
2,360
23,284,357
1,573
Like the other power plants which utilized bunker oil for fuel, coal-fired plants
biggest emissions are SOx (90 million MT annually), followed by NOx (56 million MT
annually). As with the other fossil fuel-based thermal plants, CO2 emissions are also
significant (see Figure 5.1.4).
5.3.2
Analysis of Results
Comparing the gross generation and the total emissions of the fossil fuel-based
power plants (see Table 5.1.10 and Figures 5.1.4 and 5.1.5), the coal-fired power plants
emitted more pollution by type of pollutant, followed by the bunker oil fuel-based power plants.
Diesel oil fuel-based power plants had the least emissions. In 1995, although contributing the
least to the generation of electricity, the coal-fired power plants had the most emissions of
pollutants (ranging from 48 percent to 96 percent of the total emissions calculated in this
study).
141
TABLE 5.1.10 SHARE OF GROSS GENERATION AND TOTAL EMISSIONS BY TYPE OF

POWER PLANT (IN PERCENT), 1988 AND 1995
Year/
Type of Power Plant
Gross
Generation
NOx
SOx
PM
CO
CO2
VOC
1988
Bunker Fuel-Based
Diesel Fuel-Based
Coal-Fired
100.0
75.1
3.1
21.9
100.0
19.5
0.4
80.1
100.0
32.2
0.1
67.7
100.0
16.6
0.3
83.1
100.0
32.8
0.6
66.6
100.0
20.6
0.3
79.1
100.0
406
0.0
95.4
1995
Bunker Fuel-Based
Diesel Fuel-Based
Coal-Fired
100.0
44.3
43.1
12.6
100.0
10.6
32.2
57.2
100.0
26.6
10.2
63.2
100.0
12.3
18.3
69.4
100.0
20.9
31.2
47.9
100.0
14.8
20.9
64.3
100.0
4.1
0.0
95.9
23,284,357,081
CO2
119,536,434
SOx
65,124,469
NOx
5,898,955
PM
2,359,582
CO
1,573,055
VOC
1988
FIGURE 5.1.4
1989
1990
1991
1992
1993
1994
1995
COAL-FIRED POWER PLANTS: EMISSIONS, 1988-1995
142
1995
100%
80%
60%
40%
20%
0%
Gross
Generation
NOx
SOx
PM
Bunker
Diesel
CO
CO2
Coal
VOC
1988
100%
80%
60%
40%
20%
0%
Gross
Generation
FIGURE 5.1.5
5.1.4
NOx
SOx
PM
CO
CO2
VOC
GROSS GENERATION AND EMISSIONS BY TYPE OF POWER PLANT,

1988 AND 1995
RECOMMENDATIONS
The emission factors used in this study represent uncontrolled emission rates by
type of fuel, major end-use, and unit or installation. Standard assumptions used to derive the
emission factors are based on the heat value or net heat of combustion of the fuel, the
sulphur content (for SOx emission factor) and carbon content (for the CO and CO2 emission
factors). Data on these fuel properties are still based on measurements in North America and
Europe, and therefore, should be used with caution, especially in our country where
technology and operating characteristics differ significantly. The fuel properties of coal (Hc, x
and 0) are based on the coal imported from Australia, which is the same source of our
imported coal. About half of the total volume of coal used by the power plants, however, is
from Semirara, and this local coal is more inferior. There is still no national information on
average fuel properties for the fuel in use, technology and usage.
143
Assumptions regarding technology are important, particularly for non-CO2

emissions. Many new technologies are more efficient and less polluting. Thus, if energy
intensity is projected to alter over time, that change may also be accompanied with a change
in the emission rate per unit of energy consumed or the emission factor. Another
consideration is that emission control technologies may be installed over time, varying in the
effective average efficiency of a given use of energy.
The location of the power plants should also be considered in coming up with
degradation estimates. Most of the power plants are located in less populated areas.
Another consideration is the absorptive capacity of the areas where the power plants are
located.
The monetary valuation of the degradation to air caused by power generation is
also still in the compilation process. Towards this end, a questionnaire had been designed
and distributed to the different power plants to collect the required data inputs. Given that the
data will become available, the following methodology is being proposed to be adopted in the
estimation of the monetary valuation of the degradation caused by this economic activity:
1.
identification of pollution control devices that have been installed

-
2.
segregation of expenditures for environmental protection

2.1
2.2
3.
by type of pollutant that can be controlled

efficiency in terms of pollution reduction
estimation of the volume of pollutant controlled
fixed assets / capital cost of the pollution control facilities

current operating and maintenance costs (current expenditures)
estimation of maintenance costing:

abatement cost = [(capital cost, annualised) + (current expenditures)]
by type of pollutant that can be controlled
4.
estimation of per unit cost of pollutant controlled
5.
monetary valuation of degradation

-
cost per unit of controlling emission x uncontrolled emissions
144
APPENDIX 5.1.1
EMISSION FACTORS (EF) USED
1.
For bunker oil fuel-based power plant

EF (SOx) = 2x/Hc
Where:
X
= sulfur content of fuel (15) grams of SOx per kilogram of bunker fuel oil
Hc = net heat oc combustion (41 MJ/kg) (see Table 5.1.1 above)

= 2(15g/kg)/41MJ/kg
= .732 x 103 g/MJ x 103 MJ/GJ
= 732
2.
For diesel oil fuel-based plant

EF = 2(4g/kg)/42.5MJ/kg
= 0.188 x 103 g/MJ x 103 MJ/GJ
= 188
3.
For coal-based plant
For hard coal

EF (SOx) = 2x x 8g/kg (1- 0.05) / 27 MJ/kg
= 0.563 g/MJ
Where:
x
= 8 grams of sulphur per kilogram of hard coal
= 0.05 (mass fraction of sulphur retained in ash)
Hc = 27 MJ/kg (net heat of combustion for hard coal)
For lignite
EF(SOx) = 2x x 4 g/kg (1-0.05) / 18 MJ/kg
= 0.422 g/MJ
Where:
x
= 4 grams of sulphur per kilogram of hard coal
= 0.05 (mass fraction of sulphur retained in ash)
Hc = 18 MJ/kg (net heat of combustion for hard coal)
145
APPENDIX 5.1.2
SAMPLE COMPUTATION OF EMISSIONS
Estimation of SO2
One way to estimate the emissions of sulphur dioxide (SO2) from thermal power
plants is to simply calculate the emission factor from the sulphur content and the fraction of
the sulphur retained in ash by:
EF ( SO2 )
x M ( SO2 )
(1 )
Hc
M (S)
where:
EF(SO2)
Hc
x
f
M(S)
M(SO2)
=
=
=
=
=
=
2x
( 1 )
Hc
emission factor for SO2 (in g MJ-1 )

net heat of combustion (in MJ kg-1 )
sulphur content of the fuel (in g/kg)
mass fraction of sulphur retained in ash
molecular mass of sulphur (32 kMol kg-1 )
molecular mass of sulphur dioxide (64 kMol kg-1 )
Estimation of NOx
Example
Given:
Fuel
unit
nominal fuel consumption rate
operating hours (of boiler)
total fuel consumption
residual oil
water tube boiler, rotary cup burner
6000 kg/hr
5000 hrs (per annum)
24,000 tons
1.
load factor (L) = 0.80
2.
net heat of combustion (Hc): for residual oil = 41 MJ/kg
3.
load (N):
= Hc x
(see Table 5.1.2)
F
t
= 41 MJ/kg x 4800 kg/hr

= 197 x 103 MJ/hr
= 197 GJ/hr
4.
emission factor (EF): installation/burner combination - residual oil (see Table 5.1.3)
5.
correction for non-maximum load (load correction factor):

for liquid fuels
= 1 - 0.45 (1 - L) (see Table 5.1.4)
load correction factor = 1 - 0.45 (1 - 0.80)

= 0.91
6.
adjusted emission factor (AEF)
= EF x load correction factor

= 210 g/GJ x 0.91
= 191 g/GJ
146
7.
average emission rate during operating hours = AEF x N

= 191 g/GJ x 197 GJ/hr
= 37.6 x 103 g/hr
= 37.6 kg/hr
8.
total emissions, m = average emission rate x operating hours

= 37.6 kg/hr x 5000 hrs
3
= 188 x 10 kg
Estimation of PM
1.
emission factor (EF): installation/burner combination - residual oil = 15 g / GJ (see

Table 5.1.3)
2.
correction factor: 0.76
3.
adjusted emission factor (AEF)
4.
emission rate = 11.4 g/GJ x 197 GJ/hr

= 2,246 g/hr
= 2.25 kg/hr
5.
total annual emissions, m =

=
=
=
= 15 g/GJ x 0.76
= 11.4 g/GJ
emission rate x operating hours):

2.25 kg/hr x 5,000 hrs
3
11.2 x 10 kg
11.2 mt
Estimation of SOx
1.
emission factor, EF
2.
load, N = Hc x
= 2 x (15g/kg) / (41 MJ/kg)

3
= .731707 g/MJ x 10 GJ
= 732 g/GJ
F
t
= 41 MJ/kg x 4,800 kg/hr

3
= 196,800 MJ/hr / 10 GJ/hr
= 197 GJ/hr
3.
emission rate
= 732 g/GJ x 197 GJ/hr

= 144,204 g/hr
4.
total emissions =
=
=
=
emission rate x operating hours

144,204 g/hr x 5,000 hrs
721,020,000 g
721 mt
147

NOx EMISSIONS OF BUNKER OIL FUEL-BASED POWER PLANTS, 1988-1995
Year
Gross
Estimated
Number of Estimated Fuel Estimated
Load
Energy
Total Fuel
Hours in
Consumption Nominal Fuel Factor
Generation Consumption Operation
Rate
Consumption
(MWh)
(m.t.)
(hr)
(kg/hr)
Rate
(kg/hr)
1
4
(2*1000)/3
Load
(GJ/hr)
7
(4 * Hc)*0.001
Emission
Load
Adjusted
Factor Correction Emission
Factor
Factor
(g/GJ)
(g/GJ)
8
Average
Emission
Rate
(kg/hr)
Total
Emissions
Total
Emissions
(kg)
(m.t.)
10
11
12
13
(8 * 9)
(7 * 10) * 0.001
(11 * 3)
(12 / 1000)
1988
8,788,907 1,821,386,720
7,680
237,159,729
316,225,358
0.75
9,723,549
230
0.8875
204
1,984,868
15,243,786,547
15,243,787
1989
8,932,907 1,847,173,308
7,680
240,517,358
321,318,066
0.75
9,861,212
230
0.8875
204
2,012,969
15,459,602,995
15,459,603
1990
9,609,110 1,818,581,722
7,680
236,794,495
321,318,066
0.74
9,708,574
230
0.8830
203
1,971,714
15,142,766,208
15,142,766
1991
11,287,531 2,102,133,336
7,680
273,715,278
408,053,255
0.67
11,222,326
230
0.8515
196
2,197,893
16,879,815,398
16,879,815
1992
11,659,237 2,207,711,504
7,680
287,462,435
417,602,083
0.69
11,785,960
230
0.8605
198
2,332,677
17,914,960,666
17,914,961
1993
9,714,012 1,909,551,337
7,680
248,639,497
432,530,085
0.57
10,194,219
230
0.8065
186
1,891,028
14,523,092,659
14,523,093
1994
9,587,275 1,727,138,004
7,680
224,887,761
444,466,120
0.51
9,220,398
230
0.7795
179
1,653,125
12,696,001,459
12,696,001
1995
9,326,254 1,675,937,170
7,680
218,220,986
450,513,711
0.48
8,947,060
230
0.7660
176
1,576,293
12,105,931,008
12,105,931
Col.
Col.
Col.
Col.
Col.
Col.
2:
3:
4:
5:
6:
7:
Col. 8:
Col. 9:
Col. 10:
Col. 11:
Col. 12:
Col. 13:
Total Fuel Consumption: EFC = Gross Generation x Fuel Requirement Per Megawatthour Generated which is based on the Sucat Thermal Plant (see Appendix Table 2).
365 days - 45 days (average number of days wherein a power plant undergoes annual rehabilitation) x 24 hours
Estimated Fuel Consumption Rate = Estimated Total Fuel Consumption (metric tons) / Number of Hours in Operation (hr) x 1,000
Estimated Nominal Fuel Consumption Rate (kg/hr): see Appendix Table 3.
Load Factor (L) = Estimated Fuel Consumption Rate (kg/hr) / Estimated Nominal Fuel Consumption Rate (kg/hr)
Net Heat of Combustion (Hc) for Residual Fuel Oil (which includes Bunker Fuel) is 41 MJ/kg (Handbook of Emission Factors, part III). This is applied to the Estimated Fuel Consumption Rate to derive the
Load or the amount of fuel energy supplied per unit of time (e.g., 237,127 kg/hr x 41 MJ/kg = 9,722,207 MJ/hr/1,000 = 9,722 GJ/hr)
Emission Factor for Residual Fuel Oil used in Power Plants (Handbook of Emission Factors, part III).
Correction Factor for NOx emissions (corrected for non-maximum load): fL = 1 - 0.45 (1 - Load Factor); e.g., 1-0.45(1-0.75) = 1-0.45(0.25) = 1-0.1125 = 0.8875 or 0.89
Adjusted Emission Factor = Emission Factor (g/GJ) x Correction Factor
Average Emission Rate = Load (GJ/hr) x Adjusted Emission Factor (g/GJ)
Total NOx Emissions = Average Emission Rate (kg/hr) x Number of Hours in Operation (hr)
Total NOx Emissions (in metric tons) = Total NOx Emissions (kg) / 1,000
APPENDIX 5.1.4
NOx EMISSIONS OF DIESEL FUEL-BASED POWER PLANTS, 1988-1995
SOx
CO2
CO
PM
1988
Annual
Emission Rate
Load
Emissions
(g/hr)
(GJ/hr)
(MT)
EF*LOAD
m*7680/106
9,723,549 7,114,817,966
54,641,802
1989
9,861,212
7,215,547,191
5,541,540
149,890
1,151,158
147,918,175
1,136,012
770,160,631,427 5,914,833,649
1990
9,708,574
7,103,860,901
54,557,652
147,570
1,133,340
145,628,615
1,118,428
758,239,652,830 5,823,280,534
1991
11,222,326
8,211,488,450
63,064,231
170,579
1,310,049
168,334,896
1,292,812
876,463,691,840 6,731,241,153
1992
11,785,960
8,623,904,682
66,231,588
179,147
1,375,846
176,789,398
1,357,743
920,483,464,285 7,069,313,006
1993
10,194,219
7,459,212,263
57,286,750
154,952
1,190,032
152,913,291
1,174,374
796,168,533,578 6,114,574,338
1994
9,220,398
6,746,657,567
51,814,330
140,150
1,076,352
138,305,973
1,062,190
720,113,099,420 5,530,468,604
1995
8,947,060
6,546,653,573
50,278,299
135,995
1,044,444
134,205,906
1,030,701
698,765,418,021 5,366,518,410
Year
Emission
Rate
(kg/hr)
EF*LOAD
Annual
Emission
(MT)
m*7680/106
147,798
1,135,088
EF*LOAD
145,853,234
Annual
Emissions
(MT)
m*7680/106
1,120,153
Annual
Emissions
(MT)
EF*LOAD
m*7680/106
759,409,169,090 5,832,262,419
Emission
Rate (g/hr)
Emission Rate
(g/hr)

NOx EMISSIONS OF DIESEL FUEL-BASED POWER PLANTS, 1988-1995
Year
Gross
Generation
(MWh)
1
362,290
723,910
1,596,160
1,346,430
1,855,510
2,531,900
6,903,510
9,076,670
1988
1989
1990
1991
1992
1993
1994
1995
Col.
Col.
Col.
Col.
Col.
Col.
2:
3:
4:
5:
6:
7:
Estimated
Fuel
Consumption
(m.t.)
2
29,880,610
122,904,260
493,137,638
328,129,246
462,398,788
652,150,623
1,835,948,168
2,413,887,379
Number of
Hours in
Operation
(hr)
3
7,680
7,680
7,680
7,680
7,680
7,680
7,680
7,680
Estimated
Fuel
Consumption
Rate
Estimated
Nominal Fuel
Consumption
Rate
(kg/hr)
4
3,890,700
16,003,160
64,210,630
42,725,160
60,208,180
84,915,450
239,055,750
314,308,250
(kg/hr)
5
89,494,620
147,015,332
154,621,376
158,044,096
168,336,025
370,894,496
580,205,708
587,336,375
Load
Factor
6
0.04
0.11
0.42
0.27
0.36
0.23
0.41
0.54
Load
Load
Adjusted
EmissionCorrection Emission
Factor Factor
Factor
(GJ/hr)
(g/GJ)
7
8
165,355 450
680,134 450
2,728,952 450
1,815,819 450
2,558,848 450
3,608,907 450
10,159,869 450
13,358,101 450
9
0.57
0.60
0.74
0.67
0.71
0.65
0.73
0.79
(g/GJ)
10
256
270
333
302
320
294
331
357
Average
Emission
Rate
(g/hr)
11
42,264,674
183,486,631
907,512,914
548,704,276
819,854,787
1,061,307,262
3,358,141,626
4,766,838,210
Total
Emissions
(mt)
13
324,593
1,409,177
6,969,699
4,214,049
6,296,485
8,150,840
25,790,528
36,609,317
Estimated Fuel Consumption = Gross Generation x Fuel Requirement Per Megawatthour Generated (for 1988 and 1989, the 1990 figure was adopted).
365 days - 45 days (average number of days wherein a power plant undergoes annual rehabilitation) x 24 hours
Estimated Fuel Consumption Rate = Estimated Fuel Consumption (metric tons) / Number of Hours in Operation (hr) x 103 kg
Estimated Nominal Fuel Consumption Rate (kg/hr)
Load Factor (L) = Estimated Fuel Consumption Rate (kg/hr) / Estimated Nominal Fuel Consumption Rate (kg/hr)
Load (GJ/hr) = Estimated Fuel Consumption Rate (kg/hr) x Net Heat of Combustion (Hc) for Distillate Oil (gas turbine) which is equal to 42.5 MJ/kg
(e.g., 11,159 kg/hr x 42.5 MJ/kg = 474,268 MJ/hr / 103 GJ = 474 GJ/hr)
Col. 8: NOx Emission Factor for Distillate Oil (using gas turbines), (Handbook of Emission Factors, part III)
Col. 9: Correction Factor for NOx emissions (corrected for non-maximum load): fL = 1- 0.45 (1 - Load Factor);
e.g., fL = 1- 0.45(1 - 0.04) = 1- 0.45(0.96) = 1- 0.432 = 0.568 or .57
Col. 10: Adjusted Emission Factor = Emission Factor (g/GJ) x Load Correction Factor
Col 11: Average Emission Rate (g/hr) = Load (GJ/hr) x Adjusted Emission Factor (g/GJ)
Col. 12: Total Emissions (g) = Average Emission Rate (kg/hr) x Number of Operating Hours (hr)
Col. 13: Total Emissions (mt) = Total Emissions (g) / 106 m.t.

SOx, PM, CO, AND CO2 EMISSIONS OF DIESEL FUEL-BASED POWER PLANTS, 1988-1995
SOx
Year
Load
(GJ/hr)
PM
CO2
CO
Emission
Annual
Emission
Annual
Emission
Annual
Emission
Annual
Rate
Emissions
Rate
Emission
Rate
Emissions
Rate
Emissions
(g/hr)
(m.t.)
6
m*7680/10
(g/hr)
m = EF * LOAD
(m.t.)
6
m*7680/10
m = EF * LOAD
(m)
(kg/hr)
(Metric Tons)
(g/hr)
(m.t.)
6
6
m*7680/10 m = EF * LOAD m*7680/10
(m)
(m)
m = EF * LOAD
(m)
1988
165,355
2,514,528,863
19,311,582
2,513,392
19,303
2,480,321
19,049
12,203,180,550
93,720,427
1989
680,134
1,912,493,812
14,687,952
10,338,041
79,396
10,202,015
78,351
50,193,911,340
385,489,239
1990
2,728,952
679,340,584
5,217,336
41,480,067
318,567
40,934,277
314,375
201,396,641,364
1,546,726,206
1991
1,815,819
513,697,883
3,945,200
27,600,453
211,971
27,237,290
209,182
134,007,464,340
1,029,177,326
1992
2,558,848
481,677,482
3,699,283
38,894,484
298,710
38,382,715
294,779
188,842,956,570
1,450,313,906
1993
3,608,907
341,809,825
2,625,099
54,855,381
421,289
54,133,599
415,746
266,337,309,294
2,045,470,535
1994
10,159,869
128,028,481
983,259
154,430,015
1,186,023
152,398,041
1,170,417
749,798,360,244
5,758,451,407
1995
13,358,101
31,126,378
239,051
203,043,130
1,559,371
200,371,509
1,538,853
985,827,826,494
7,571,157,707

NOx, SOx, PM, CO AND CO2 EMISSIONS OF COAL FIRED POWER PLANTS, 1988-1995
NOx
Year
Gross
Generation
Estimated
Average Fuel
Load (N)
Consumption
Emission
Total
Rate
Emissions
6
m*7680/10
(g/hr)
(mt)
Rate (AFCR)
(MWh)
1
(kg/hr)
2
(MJ/hr)
3
SOx
PM
Emission Rate
(g/hr)
CO
Total
Emission
Total
Emissions
Rate
Emissions
6
m*7680/10
(g/hr)
8
(mt)
9
(mt)
m*7680/106
Emission Rate
CO2
Total
Emission Rate
Emissions
(g/hr)
(mt)
6
m*7680/10
12
13
2,558,680
1,314,163,635
29,568,681,783
8,160,956,172
62,676,143
14,979,494,191
115,042,515
739,217,045
5,677,187
295,686,818
2,270,875
2,917,837,518,346
22,408,992,141
1989
2,536,370
1,302,704,996
29,310,862,403
8,089,798,023
62,129,649
14,848,882,893
114,039,421
732,771,560
5,627,686
293,108,624
2,251,074
2,892,395,901,953
22,213,600,527
1990
1,873,011
961,997,180
21,644,936,543
5,974,002,486
45,880,339
10,965,324,853
84,213,695
541,123,414
4,155,828
216,449,365
1,662,331
2,135,922,338,110
16,403,883,557
1991
2,091,130
1,074,025,279
24,165,568,784
6,669,696,984
51,223,273
12,242,277,146
94,020,688
604,139,220
4,639,789
241,655,688
1,855,916
2,384,658,327,630
18,314,175,956
1992
2,155,270
1,106,968,225
24,906,785,056
6,874,272,675
52,794,414
12,617,777,309
96,904,530
622,669,626
4,782,103
249,067,851
1,912,841
2,457,801,549,301
18,875,915,899
1993
2,458,690
1,262,807,771
28,413,174,845
7,842,036,257
60,226,838
14,394,114,377
110,546,798
710,329,371
5,455,330
284,131,748
2,182,132
2,803,812,093,729
21,533,276,880
1994
1,820,100
934,821,561
21,033,485,123
5,805,241,894
44,584,258
10,655,563,563
81,834,728
525,837,128
4,038,429
210,334,851
1,615,372
2,075,584,311,888
15,940,487,515
1995
2,658,630
1,365,498,954
30,723,726,472
8,479,748,506
65,124,469
15,564,639,831
119,536,434
768,093,162
5,898,955
307,237,265
2,359,582
3,031,817,328,232
23,284,357,081
Col. 2: Estimated Average Fuel Consumption Rate (kg/hr) = Gross Generation (MWh) x 154,083 (kg/hr), the average fuel
consumption rate of Calaca Coal-Fired Power Plant / 300 (MW), installed capacity of Calaca Coal-Fired Power Plant
Col. 3: Load (MJ/hr) = [Estimated Average Fuel Consumption Rate (kg/hr) x 0.5 (percent blend of hard coal) x 27 MJ/kg
(Hc or net heat of combustion for hard coal)] + [Estimated Average Fuel Consumption Rate (kg/hr) x 0.5 (percent
blend of lignite) x 18 MJ/kg (Hc or net heat of combustion for lignite)]
Col. 4: Emission Rate (g/hr) = Load (MJ/hr) / 103 GJ/MJ x 300 g/GJ (NOx emission factor for hard coal + Load (MJ/hr) /
103 GJ/MJ x 240 g/GJ (NOx emission factor for lignites
Col. 5:: Total Emissions (MT) = Emission Rate (g/hr) x Number of Operating Hours - 7860 (hr)/106
Col. 6: Emission Rate = [Estimated Average Fuel Consumption Rate (kg/hr) x 0.5 (percent blend of hard coal) x 27 MJ/kg (Hc
or net heat of combustion for hard coal) x 0.563 g/MJ (SOx emission factor for hard coal)] + [Estimated
Average Fuel Consumption Rate (kg/hr) x 0.5 (percent blend of lignite) x 18 MJ/kg (Hc or net heat of
combustion for lignite) x 0.422 g/MJ (SOx emission factor for lignite)]
Cols. 8, 10, 12 : For emission rates for PM, CO and CO2, use the same formula used for Col. 6 and
replace the Emission factors with the respective emission factors , which is given above.
11
(g/hr)
1988
Col. 1: Gross Generation of Coal-Fired Power Plants.
10
(mt)
m*7680/106
Total
Emissions

VOC OF BUNKER OIL FUEL-BASED AND COAL FIRED POWER PLANTS, 1988-1995
Bunker Fuel-based
Coal-fired Power Plants
Emission
Estimated
Annual
Annual
Factor
Fuel
Emission
Emission
Year
Year
Consumption
Average
Number
Gross
Fuel
of Hours in
Total Fuel
Emission
Total
Generation
Consumption
Operation
Consumption
Factor
Emissions
Rate
(hr)
MT
(kg/m.t.)
MT
(MWh or MJ)
(gVOC/kgoil)
(kg)
(kg)
(MT)
(kg/hr)
1
0.03 g/li
0.07kg/li
1988
0.04
1,821,386,719,960
72,855,469
72,855
1988
2,558,680
1,314,163,635
7,680
10,092,776,715.26
0.15
1,513,917
1989
0.04
1,847,173,308,180
73,886,932
73,887
1989
2,536,370
1,302,704,996
7,680
10,004,774,366.98
0.15
1,500,716
1990
0.04
1,818,581,722,160
72,743,269
72,743
1990
1,873,011
961,997,180
7,680
7,388,138,340.17
0.15
1,108,221
1991
0.04
2,102,133,335,790
84,085,333
84,085
1991
2,091,130
1,074,025,279
7,680
8,248,514,145.02
0.15
1,237,277
1992
0.04
2,207,711,503,660
88,308,460
88,308
1992
2,155,270
1,106,968,225
7,680
8,501,515,965.70
0.15
1,275,227
1993
0.04
1,909,551,336,920
76,382,053
76,382
1993
2,458,690
1,262,807,771
7,680
9,698,363,680.51
0.15
1,454,755
1994
0.04
1,727,138,003,980
69,085,520
69,086
1994
1,820,100
934,821,561
7,680
7,179,429,588.48
0.15
1,076,914
1995
0.04
1,675,937,170,050
67,037,487
67,037
1995
2,658,630
1,365,498,954
7,680
10,487,031,969.02
0.15
1,573,055
Col. 1: Emission Factor of VOC (ENRAP Study).

Col. 3: Annual Emission (kg) = Estimated Fuel Consumption (kg)
x Emission Factor (gvoc/kgoil)
Col. 4: Annual Emission (m. t.) = Annual Emission (kg) / 103 m.t.
Col. 4: Total Fuel Consumption (m.t.) = (Average Fuel Consumption Rate (kg/hr)
x Number of Hours in Operation (hr)) / 103 m.t.
Col. 5: 0.07 kg/li = Emission Factor of VOC per metric ton of coal (ENRAP study) converted to kg/m.t.
Col. 6: Total Emissions = (Total Fuel Consumption (m.t.) x Emission Factor (kg/m.t.)) / 103 m.t.
APPENDIX 5.1.9
6
TYPES OF POWER PLANTS
1.
INTRODUCTION
There are two types of plants that can be developed to generate electric power,
namely, hydro and thermal. Hydroelectric plants and generators are propelled by water
turbines while thermal or steam plants obtain energy from combustion of fuel, and driven by
steam turbines. Thermal plants can utilize fossil fuel (oil, coal, or natural gas), nuclear fuel, or
geothermal energy.
Comparison of thermal- and hydroelectric-power costs
Initial or capital cost. The initial investment or capital cost of a hydroelectric plant is
generally higher than that of a comparable thermal plant.
Operating costs. The cost of operating a thermal plant is much higher than for a
hydroelectric plant, mainly because of fuel costs. Hydroelectric power plants have low
operating costs, are well suited to serve peak-load demands, and use a renewable resource
as well. In contrast, the fuels used to run thermal power plants, e.g., oil, coal and natural gas,
are non-renewable, and additional depletion costs have to be taken into account.
Environmental costs. Expensive air pollution-control systems are required for most
thermal plants, and cooling towers or cooling ponds are needed to avoid thermal pollution of
rivers or lakes. For hydroelectric plants, favorable sites have to be selected because of
irreversible effects on land use.
Power systems and load
The unit of electrical power is the kilowatt (kW), which is equivalent to 1.34
horsepower. The unit of electrical energy is the kilowatt-hour (kWh), defined as 1 kW of power
delivered for one hour.
Firm (or primary) power is the power that a plant can be expected to deliver 100
percent of the time. Surplus (or secondary) power is all power available in excess of firm
power.
The load for the peak day of the year determines the required generating capacity,
while the requirements of the peak week or month dictate the amount of energy storage
required in the form of fuel or water. The key problem in the economics of electric power
utilities is the variation in the demand for electric power during the day, each month, and
throughout the year.
2.
THERMAL POWER PLANTS
2.1
Fossil fuel-fired power plants
2.1.1
General layout and design considerations
For purposes of design and layout, thermal power stations can be classified by the
number and ratings of the turbo sets, the number of boiler per set, the type of fuel, the
methods of fuel delivery, and the method of cooling. Local weather conditions have an
influence on the design of thermal power stations. The effective choice of the size and
number of units will, in a given situation, be decided with due regard to total capacity and
demand on the interconnected system, as well as the likely growth of future demand.
6
Lecture Notes of Ms. Maricor Ebarvia, Consultant, TWG on Electricity.
154
Fuel Supply
For coal-burning stations, the fuel supply could be delivered by road, rail or waterway.
In the case where the power station is close to the sea or rivers, and fuel is transported by
waterway, suitable berthing arrangements with jetties, cranes, etc. will have to be provided.
In addition, adequate provision will have to be made for the storage of coal at the power plant
to take care of possible unforeseen delays in the normal coal deliveries.
Oil fuel is handled, transported and stored more cheaply and easily. No ash handling
is involved. Where natural gas is used, the supply is usually obtained over a pipe line, and no
storage is required.
Plant design
The generally preferred modern practice is to adopt the unit type design in which the
boiler, the turbo-generator and the transformer are tied together and operated as one unit.
The major inter-connections to be provided will include:
a)
fuel supply line from the bunkers to the coal pulverizing mills, and then to the
boiler burners;
b)
combustion air supply ducts from the air intake to the forced-draft fans, and
then to air pre-heater, and then to burners;
c)
gas ducts from the super-heater to the economizer, then to the pre-heater,
then to the dust precipitators, then to the induced fans, and then to the
stacks for discharge into the atmosphere;
d)
main steam and re-heater steam piping between the boiler and the turbine;
e)
condensate and feed water line from the condenser through the feed heaters
and de-aeration and feed pumps to the economizer and boiler;
Another important design consideration is the vacuum at the condenser. The

performance of a steam turbine is highly sensitive to the backpressure or the exhaust.
Intermediate feed water heating is an effective means of raising the efficiency of steam cycle.
f)
electric cable connections between the generator and transformer;
g)
electric cable network from the main transformers or auxiliary transformers

through the switchboards to the various auxiliaries;
h)
control and telemetering cables from the plant to the control center.
Cooling water supply

In the production of electricity, quantities of steam are generated and then
condensed, driving the turbines in the expansion phase of the process. The condensation is
achieved through rapid cooling with water, but carries away a great deal of waste heat due to
thermodynamic inefficiencies.
There are two systems of providing cooling water to a
thermal power station. Where direct cooling is employed, cold water is drawn from the sea or
river, pumped through the condenser, and then led back into the sea or river at a further
location and at an elevated temperature. The difference in temperature may be 10-degrees
Celsius. The second method is to adopt cooling towers in which water is pumped in a closed
circuit consisting of the condenser and the cooling tower. The heat collected from the
condenser by the circulating water is dissipated when it drops down the cooling tower against
an upward draught of air.
155
The cooling towers are classified as wet or dry, and each of these may be forceddraught or natural-draught. In the wet tower. the cooling tower is in contact with the air, and
cooling takes place by evaporation. A dry tower is basically a large radiator. The cooling
water flows through finned tubes and is cooled by air passing over them. Dry towers are
more expensive to construct than wet towers, but they do not have any water loss.
2.1.2
Environmental effects
a.
Air pollution
Most of today's environmental discussions revolve around specific pollutants that

influence the biosphere, such as sulfur dioxide, carbon monoxide, the oxides of nitrogen, and
waste heat that cause temperature rise in water bodies. Coal and oil produce the most
pollutants when burned. Coal accounts for about two-thirds of the SO2 in the air. Thus, the
primary strategies aim at controlling sulfur-oxide emissions, and limiting the sulfur content of
the fuel, or limiting the SO2 emitted at the stack.
Air pollution problems from fossil-fuel plants can be reduced somewhat by the use of
tall stacks or the construction of mine-mouth generating plants. Tall stacks, about 150 meters
high or more, can help disperse the pollutants, and thereby lower pollution concentrations at
ground level, but they do not decrease the amount or air pollution, and may simply transfer
the problem to a different area.
The most promising flue-gas desulphurization processes utilize scrubbing of flue
gases with lime or limestone slurries, forming a sludge waste product. New plants install
fluidized beds to control emissions of sulfur oxides and nitrogen oxides.
Electrostatic precipitators work well to control fly-ash problems. However, the solid
waste (from the fly ash) disposal problem is not trivial.
b.
Water pollution
Thermal power plants require substantial volumes of water for cooling purposes. The
effect of thermal releases on the source of cooling water of a power plant depends upon the
amount of water available, the ecology of the source water, and its desired use.
Environmental effects result from the release of waste heat to the receiving water body. The
oxygen content of water is critical for most marine life, and it is affected by temperature.
Other than the impact caused by the warming of the cool water, the evaporation of about five
pounds of water for each kWh produced is also a major environmental effect.
2.2
Geothermal power plants
2.2.1
Geothermal reservoirs
Below the earth's crust lies the mantle, the upper part of which is believed to be the
source of magma, which is a mixture of molten rock and gases that penetrates the crust and
erupts at the surface of volcanoes. Within the continental belts of recent volcanic action, heat
flow is higher than the earth's average. The high-temperature geothermal areas are found in
these belts of high heat flow.
Geothermal reservoirs consist of permeable and porous rock in which, by circulation
of steam or hot water, a convection system can develop. Groundwater, which can percolate
down to depths of several miles, is heated directly or indirectly by the underlying magmas,
then expands. A cap rock traps the heat of the water until it is released by a well or a natural
fracture, and ascends towards the surface.
156
2.2.2
Types of geothermal sources
a.
Dry-steam geothermal fields
Little or no water remains with the superheated steam as it emerges. The steam is
separated from water particles in the separator, and filtered to remove abrasive particles. The
turbines for geothermal plants have a different design from those of modern fossil-fuel power
plants which operate at much higher pressures and temperatures. The steam from the
turbine is then condensed, and the resulting water is cooled in cooling towers. Most of the
water is ultimately evaporated to the atmosphere in these towers, carrying with it the waste
heat from the plant. About 20 percent of the condensed water, containing trace chemicals
such as boron and ammonia, which would pollute local rivers if released, is reinjected into the
ground through deep wells.
b.
Wet-steam geothermal fields
Geothermal wells commonly produce a mixture of steam and hot water, rather than
steam alone. Water-dominated sites are most commonly found in areas of volcanism. The
water contained in wet-steam deposits, however, is often heavily contaminated by dissolved
salts and minerals, which must be removed before the water enters the turbine, in order to
avoid clogging and corrosion. A centrifugal separator is used to separate the steam and the
water. Often, the water output of the separator is then allowed to flash at some suitable lower
pressure, and the low-pressure steam is utilized while the water output is discarded. When
the water is relatively saline, it is reinjected back into the earth. Two turbines can be used,
one each for high- and low-pressure steam, respectively. The output of the low-pressure
turbine is condensed and then cooled through the cooling tower (or through evaporative
ponds which some plants use). Surplus condensate may be purified as desalted water. The
additional components, such as the flash units and turbine sections, and the cost of disposal
of wastewater raise the total cost to about twice the cost of the dry-steam plant, but still
attractive in comparison to that of fossil-fuel plants.
c.
Hot-brine geothermal fields
Many geothermal fields have reservoirs of water that has a salt content equal to or
greater than that of sea water. These dissolved salts are extremely corrosive. Once the
steam has been removed, the hot brine becomes a thick syrup. A distillation process can be
employed to remove the salts from the hot brines. The primary problem is to design a
corrosion-resistant turbine wheel to be able to use the hot brine directly.
The corrosive brine solution is used to heat secondary fluids, which have lower
boiling points and are effective high-pressure heat carriers, in a series of heat exchangers.
Then it is reinjected into the reservoir in order to avoid land subsidence and ground- and
surface- water degradation.
d.
Hot-rock geothermal fields
Underground water systems do not come in contact with most of the near-surface
deposits of geothermal heat.
High-porosity rocks, called hot-rock deposits, however,
constitute an important source of heat. Utilizing these deposits requires the development of a
technique for artificial fracture of the rock, the injection of water into the fractures, and
subsequent recovery of steam for turbines.
2.2.3
Environmental impact of geothermal power plants
In many systems, towers must be erected to cool the surplus heat in the output
steam. A plant's impact will vary widely with the quality of the steam or water that emerges
from the condenser, and will be dependent upon whether subterranean pressures present
obstacles in the way of returning the residues to the earth.
157
In the case of using hot dry rock, substantial quantities of surface water will be
required for injection into the artificial fracture.
Steam coming from the earth may contain objectionable gaseous effluents. The
steam used contains CO2, H2S, ammonia, methane, arsenic, mercury, and other noncondensable gases. Under current technologies, the toxins are re-injected into the reservoir.
The disposal of geothermal wastewater from hot-brine plants will be a problem
because of the mineral content. Once through the turbines, the condensed water may be too
full of contaminants to permit dumping into natural streams or lakes. Because the saline and
siliceous solids precipitate out as the water temperature and pressure drop, re-injection into
the ground also may be difficult. The solids may block the porosity of the underground rock.
3.
HYDROELECTRIC POWER PLANTS
3.1
Definition of terms
The gross head for a hydroelectric plant is the difference in elevation between the
water service in the stream at the diversion and the water surface in the stream at the point
where the water is returned after having been used for power.
The net or effective head is the head available for energy production after deducting
losses in friction, entrance, unrecovered velocity head in the draft tube, etc.
The hydraulic efficiency is equal to the ratio of net head to gross head.
The overall efficiency is equal to the hydraulic efficiency multiplied by the efficiency of
the turbines and generators. If the plant is operating at optimum conditions, then the overall
efficiency will usually be between 60 and 70 percent.
The capacity of a hydroelectric plant is the maximum power which can be developed
by the generators at normal head with full flow.
3.2
Types of hydroelectric plants
Hydroelectric plants may be classified as run-of-river, storage, or pumped-storage. A

run-of-river plant generally has very limited storage capacity, and can use water only as it
comes. A storage type of plant is one with a reservoir of sufficient size to permit carry-over
storage from the wet season to the dry season, and thus, to develop a firm flow substantially
more than the minimum natural flow. A pumped-storage generates energy for peak load, but
at off peak, water is pumped from the tailwater pool to the headwater pool for future use.
3.3
General arrangement of a hydroelectric project
A hydroelectric system includes a diversion structure, a conduit (penstock) to carry

water to the turbines, turbines and governing mechanism, generators, control and switching
apparatus, housing for equipment, transformers, and transmission lines to the distribution
centers. In addition, trash racks at entrance to the conduit, canal and penstock gates, a
forebay, or surge tank, and other appurtenances may be required.
The forebay serves as a regulating reservoir, temporarily storing water when the load
on the plant is reduced and providing water for the initial increments of an increasing load
while water in the canal is being accelerated. The forebay is provided with some type of
intake structure to direct water to the penstock. Intakes should be provided with trash racks
to prevent the entry of debris which might damage the wicket gates and turbine runners or
158
choke the nozzle of impulse turbines. Moreover, a forebay must be provided with a spillway,
or wasteway, so that excess water can be disposed of safely if the need arises.
Water is carried to the powerhouse from the dam and forebay through a canal,
tunnel, or penstock. The structural design of a penstock is the same as for any other pipe.
A powerhouse consists of a substructure to support the hydraulic and electrical
equipment, and a superstructure to house and protect this equipment. The details of the
waterways in the substructure depend on the type of turbine and setting selected.
The tailrace is the channel into which the water is discharged after passing through
the turbines. A tailrace, or waterway, from the powerhouse back to the river must be provided
if the powerhouse is situated so that the draft tubes cannot discharge directly to the river.
3.4
Environmental problems
Hydroelectric power utilizes a renewable indigenous resource without producing air

emissions and radioactive wastes. Moreover, there are many other advantages: longer
service life, smaller staff requirements, operational flexibility, and fast response time to
changes in demand. The problems associated are primarily local environmental and social
consequences. The greatest effect of dam construction is on land use and its irreversibility
after the completion of the hydroelectric power system. Undesirable effects include upstream
flooding of river valleys, downstream water-flow reduction, impact on the area required for the
lake (or forebays) such as the inundation of productive lands and forests, destruction of
habititats and loss of the biodiversity of flora and fauna in the affected sites, siltation,
relocation of human settlements, and the effects of long electric transmission line from the
project site to the area where the electric power is used.
159
APPENDIX 5.1.10
7
TREATMENT PROCESS
1.
Air Pollution Control Facilities
1.1
SO2
For coal-fired boilers there are two Flue Gas Desulphurization (FGD) systems that
are applicable to control SO2 emissions: lime/limestone scrubbing process and sodium
scrubbing.
For oil-fired boilers, most of the FGD units installed are sodium throwaway systems.
The actual designs of the systems are very similar to coal-fired FGD system designs except
that the oil-fired systems have lower flue gas flow rates for a given boiler size and because
less excess air is used for combustion. Consequently, the oil-fired FGD systems are smaller.
1.2
NOx flue gas treatment (FGT)

Examples of NOx FGT systems are the following (NOx - only processes):
Fixed Packed Bed Selective Catalytic Reduction (SCR)

Moving Bed SCR
Parallel Flow SCR
Absorption-Oxidation
Simultaneous NOx/ SOx processes:

Parallel Flow SCR
Adsorption
Electron Beam Radiation
Absorption-Reduction
Oxidation-Absorption-Reduction
Oxidation-Absorption
Controls for coal-fired boilers:
a. Control of NOx only
Selective catalytic reduction (SCR)
Fixed packed bed systems for selective catalytic reduction of NOx are applicable
3
only to flue gas streams containing particulate emissions of less than 20mg/Nm while moving
3
bed systems are applicable only to flue gas streams containing less than 1 g/Nm . Particulate
emissions for all types of coal are higher. Although it is possible to install a hot electrostatic
3
3
precipitator (ESP) to reduce the particulate level to 20mg/Nm and 1 g/ Nm for fixed packed
bed systems and moving bed systems, respectively, this is expensive, and not always
effective. For these reasons, both SCR systems are not considered for application to coalfired boilers.
Ibid.
The information in this section was based on Martin, ed. (1981) and the tables presented are culled
from various EPA reports.
160
Absorption-oxidation
The relative insolubility of NO in water presents a major obstacle to achieving the

stringent level of control (90 percent NOx reduction) by this system. Another primary
drawback of this system is the production of nitrate salts, a secondary pollutant. Trying to
recover the nitrates as nitric acid for industrial use or potassium nitrate for fertilizer does not
seem promising as the by-products are of low quality. Moreover, the use of expensive, liquidphase oxidant requires stainless steel and other corrosion-resistant materials. High sulphur
coals require an FGD system prior to the NOx absorber as it has been mentioned.
b. Simultaneous NOx/SOx removal
Selective catalytic reduction
This process is similar to those discussed in the previous section on SCRs. The
primary difference is the additional equipment necessary to collect and process SO2. The
main feature of the process is the reactor and the catalyst which remove both NOx and SO2,
a process developed by Shell. A uniquely designed parallel flow type of reactor is used to
avoid problems with particulates. The Shell Flue Gas Treatment (SFGT) is a dry process with
two or more reactors operating in a cyclic manner. The desulphurization aspect is
regenerable, while NOx removal is accomplished by catalytic reduction with ammonia.
Controls for oil-fired boilers
a. Control of NOx only
Selective catalytic reduction
Since fixed packed bed systems are applicable only to flue gas streams containing
3
less than 20 mg/Nm of particulates, they are applicable to distillate oil-fired boilers (19 mg/
3
3
Nm ), but not to residual oil-fired boilers (330 mg/Nm ).
The system of parallel flow reactor for SCR is similar to those designed for coal-fired
boilers, and has been described in the previous section. The following variables associated
with the boiler can also affect the performance of these SCR systems:
flue gas flow rate

NOx concentration
boiler load variability
b. Simultaneous NOx/SOx removal
1.3
NOx combustion modification
Decrease primary flame zone O2 level by:

-
decrease overall O2 level

controlled mixing of fuel and air
use of fuel-rich primary flame zone
Decrease time of exposure at high temperature by:

-
decreased peak temperature

!
!
!
decreased adiabatic flame temperature through dilution

decreased combustion intensity
increased flame cooling
161
!
-
controlled mixing of fuel and air or use of fuel-rich primary flame zone
decreased primary flame zone residence time
Chemically reduce NOx in post-flame residency by injection of reducing agent
Applicable control techniques

-
staged combustion
flue gas recirculation
combined staged combustion and flue gas recirculation
low NOx burners
ammonia injection
2.
Particulate collection
2.1
Electrostatic precipitators (ESP)
The basic collection processes taking place in an ESP are as follows: (1) suspended
particles are given an electrical charge; (2) the charged particles then migrate to a collecting
electrode of opposite polarity while subjected to a diverging electric field; and (3) the collected
material is then dislodged from the collection electrodes.
2.2
Fabric filtration
The basic mechanisms available for filtration are inertial impaction, diffusion, direct
interception, and sieving. A baghouse consists of a number of filtering elements (bags)
arranged in compartments, a cleaning mechanism or subsystem, and the main shell structure
and hoppers. The bags used in coal-fired boiler applications are usually made of fiberglass
with a coating of silicone, graphite, and/or Teflon. The bag material is most important since
the bags are usually the highest maintenance cost component.
2.3
Wet scrubbers
The main advantages of using wet scrubbers are as follows:
-
they collect both particulate matter and gases.

they function in wet, corrosive, and/or explosive gas atmosphere.
they may occupy less space than either fabric filter or ESP systems.
The main disadvantages are the following:

-
the energy requirements associated with their operation

possible high effluent opacity and the necessity for reheat
exceptionally high pressure loss to attain equivalent (ESP or filter) efficiencies
poor efficiency for fine particulates
need for both water and solid waste disposal systems
water availability and land requirements may also restrict the use of scrubbers in
certain geographical areas.
162
2.4
Mechanical collectors - Multitube cyclones
Multitube cyclones, which represented the most common type of inertial collector
used for fly ash collection before stricter emission regulations were enacted, depend on
centrifugal forces. Due to efficiency limitations, they now function mainly as precleaning
devices.
3.
Fluidized-bed combustion (FBC)
The most important pollutants identified are SO2, NOx, particulates, and solid residue.
Fluidized-bed combustion provides in situ retention of fuel sulphur, and consequently, lowers
the concentration of SO2 in the flue gas exhausted from the boiler. A suitable bed material
such as limestone or dolomite is used to absorb the SO2 formed during combustion.
By using FBC technology, SO2 emissions can be reduced by up to 90 percent or
more, depending upon the rate of sorbent addition to the bed and the FBC design and
operating conditions. The SO2 would be sent to a sulphur recovery system to generate
elemental sulphur or sulphuric acid. NOx emissions from FBC are inherently lower than
uncontrolled emissions from conventional combustion due to the unique combustion
chemistry that occurs in the fluidized bed.
163
REFERENCES
Armstead, H. and Cristopher H. 1978. Geothermal Energy: Its Past, Present and Future
contributions to the Energy Needs of Man. London: E. & F.N. Spon, Ltd.
Dorf, Richard C. 1978. Energy, Resources and Policy. London: Addison-Wesley Publishing
Company.
Kruger, Paul and Carel Otte. 1973.
Geothermal Energy: Resources, Production,
Stimulation. Stanford: Stanford University Press.
Linsley, Ray K. and Joseph B. Franzini. 1979. Water Resources Engineering. New York:
McGraw-Hill Book Company.
Ministry of Housing, Physical Planning and Environment, The Hague. 1988. Handbook of
Emission Factors, Part III.
Munasinghe, Mohan. 1995. "Sustainable Energy Development (SED): Issues and Policy,"
Environment Department Paper no. 016. World Bank.
National Power Corporation. Annual Reports.
Organisation for Economic Co-operation and Development (OECD). 1994. Fuel Property
Assumptions.
Orbeta E. and A. Indab. 1994. "Valuation of Environmental Service," Technical Report no. 1.
Environmental and Natural Resource Accounting (ENRAP) - II.
United Nations, 1980. Thermal Power Stations -- A Techno-economic Study.
164
Land Transport Services
6.1
INTRODUCTION
6.1.1
One of the environmental problems faced by the Philippines today is air pollution
which is most evident in urban areas. Rapid industrialization and the growth in vehicular
transportation brought about the increase in air pollution at an alarming rate.
The combustion of fuel in motor vehicles produce emissions such as CO, VOC,
NOx, hydrocarbon (HC), SOx, PM, lead (Pb) and CO2.
Pollution such as these may cause harmful effects on the health such as respiratory
illness, physical and mental coordination, and lung cancer, to name a few. These pollutants
also diminish crop yield and quality, degrade materials, reduce visibility and contribute in the
global warming and the destruction of the ozone layer.
6.1.2
Scope and Limitation of the Study
Emissions generated by transport services and from the use of transport equipment
as part of the support service of other economic activities are quantified and valued in this
study. This is to provide an estimate of the degradation to the environment caused by
production activities, particularly the use of motor vehicles.
In addition to the estimation of emissions caused by the transport sector, this study
also covered the emissions generated by road transport used by other economic activities as
well as that of the household sector and other institutions.
Total vehicular emission that includes exhaust emission, evaporative emission and
other air emissions, as shown in Figure 6.1.1, were estimated. Other air emissions are SOx
and Pb. Exhaust emissions, on the other hand, consist of PM, CO, NOx, HC and VOC.
Evaporative emissions are mainly VOCs emitted from gasoline-fueled vehicles only.
To assist in the evaluation of the absorptive capacity of the atmosphere in the
different regions of the country, regional dimension was introduced in the study. A review of
the regional data indicates that it is only in the National Capital Region (NCR) that emissions
exceeded its absorptive capacity.
Hence, the monetary estimate of environmental
degradation caused by the transport vehicles was limited to that occurring in NCR. The
maintenance cost valuation was used for the monetary estimates.
In this study,
environmental cost was limited to the cost of inspection and maintenance of vehicle and the
cost of emission converter and the cost of lead strap.
165
Pollutants
Fuel Combustion

NOx, CO,
VOC
Pollutants
Engine
Fuel Combustion
FUEL
Pollutants
Fuel Combustion
FIGURE 6.1.1
NOx, CO,
VOC
Engine
Hot Start Emission (HS)

(Start of engine: fully warmed up)
FUEL
Cold Start Emission (CS)

(Start of engine: 12-36 hrs. off)
PM, NOx,
HC, CO
Engine
Volatile Organic
Compounds (VOC)
Pollutants
Engine
Fuel Combustion
Fuel Combustion
Engine
Pollutants
Volatile Organic
Compounds (VOC)
Fuel Combustion
Engine
Pollutants
Volatile Organic
Compounds (VOC)
Pollutants
Fuel Combustion
FUEL
CO
Pollutants
Engine
Fuel Combustion
SOx, Pb
Engine
Carbon Dioxide - regulated emissions and

products of complete combustion
FUEL
Sulfur Oxides (Sox) and Lead (Pb)

(Associated to type of fuel)
OTHER POLLUTANTS
EMISSION PROCESS AND CORRESPONDING POLLUTANTS
FUEL
Hot Soak
(Vehicle is parked after a period of hot running)
FUEL
Diurnal
(Effects of ambient temperature rise that a
parked vehicle experiences)
FUEL
Evaporative Running Losses

(Motor vehicle is operated on the roadway)
Running Exhaust Emission (REX)

(Motor vehicle is running)
FUEL
EVAPORATIVE EMISSION (EV)
EXHAUST EMISSION (EX)
166
6.2
6.2.1
SOURCES AND METHODS

Data Sources
In general, the data used in the study were obtained from related studies conducted
by other agencies and institutions and from publications and administrative reports of these
agencies. To summarize, the sources of data and other parameters used in the estimation
are listed below:
1. Data on emission factors were taken from air pollution studies by the
Environmental Management Bureau (EMB), the ADB and the US-EPA.
2. Data on fuel consumption (Appendix Table 6.1.7) were taken from the Energy
Regulatory Board (ERB) and from the DOE.
3. Data on motor vehicle registration were obtained from the Land Transportation
Office (LTO, Appendix Tables 6.1.5 and 6.1.6).
4. Information on fuel content was derived from the DOE and the Bureau of
Product Standards (BPS).
5. Other data requirements were taken from publications and reports of the
NSCB, NSO, and ENRAP III study and from transport industry practices shared
by various automotive manufacturing companies.
6.2.2
6.2.2.1
Physical Estimation
The same methodology used in the 1990 Air Pollution Emission Inventory for Metro
Manila conducted by the EMB was used to estimate total emissions generated by the
transport sector throughout the country.
Total vehicular emission was computed as the sum of exhaust emission,
evaporative emission and other air emissions. Exhaust emissions include emission during
running, hot and cold start, while evaporative emissions are those coming mainly from
gasoline-fueled vehicles, comprised of hot soak, diurnal and evaporative running losses
(Figure 6.1.1). Table 6.1.1 summarizes the sources of emissions and the corresponding
emissions that were estimated in this study.
The emission factors used for the three (3) sources of emissions adopted those
used in the EMB report (EMB, 1993). The emission factors for running exhaust emissions
were the results of the actual test done by EMB during the 1990 Emission Inventory in Metro
Manila (Appendix Table 6.1.1). The rest of the emission factors (e.g. hot start, cold start and
evaporative emissions) were based on the standards set by the USEPA. Appendix Table
6.1.2 provides a summary of evaporative emission factors used.
167
TABLE 6.1.1
TYPE OF EMISSIONS BY SOURCE
EMISSIONS
SOURCE
Exhaust (EX)
Running (REX)
PM10
PMex
PMwt
VOC
NOx
HC
Cold start (CS)
VOC
NOx
CO
Hot start (HS)
VOC
NOx
CO
Evaporative (EV)
VOC
Other emissions
CO
SOx
Pb
CO2
Exhaust Emissions (EX)
The pollutants emitted from this source are PM, CO, NOx, HC and VOC. The
formulae for estimating exhaust emission (EX) are as follows:
EX
= REX + HS + CS
REX =
CS
HS
t =1
5
f =1
2
t =1
f =1
t =1
f =1
(NV
tf
Eq. 1
x Dtf) x EFtf
(NV x NT
tf
tf
x NOtf) x EFtf
(NV x NO ) x EF
tf
tf
Eq. 2
Eq. 3
Eq. 4
tf
where:
REX
CS
HS
NVtf
t
=
=
=
=
=
Df
EFtf
NTtf
NOf
NOfd
NOfg
=
=
=
=
running exhaust emission

cold start emission
hot start emission
number of registered vehicles, by type of vehicle (t) and of type of fuel
used, (f)
1, cars
2, utility
3, trucks
4, buses
5, mc/tc
=
=
=
=
=
=
= 1, gasoline
= 2, diesel
average distance traveled by type of vehicle and of fuel used

emission factor by type of vehicle and of fuel used
number of trips per vehicle per day by type of vehicle and of fuel used
number of days of operations by type of fuel
365 days for diesel-fueled vehicles
240 days for gasoline-fueled vehicles
168
Evaporative Emissions (EV)
This source of emission generates mainly VOCs emitted from gasoline-fueled

vehicles only. Evaporative emission (EV) was computed using the following formula:
EV = hot soak + diurnal + evaporative running losses
Eq. 5
The methodology used for estimating hot soak and diurnal emissions was the same
as that for hot start emissions (HS) in Eq. 4, differing only in the assumed number of trips per
vehicle per day (NTtf) and emission factor (EFtf). Also, the procedure for estimating emissions
from evaporative running losses was the same as that for running exhaust emissions (REX) in
Eq. 2, except for the emission factor (EFtf). Appendix Table 6.1.3 shows the relevant data
used for the estimation of evaporative emissions.
Other Air Emissions: Sulfur Oxide (SOx) and Lead (Pb)
Other air emissions are also generated due to the quality of fuel used. Sulfur oxide
(SOx) emission from motor vehicles depends on the sulfur content of the fuel. SOx emissions
were estimated using the following equation:
SOx
= SCF x 2
Eq. 6
where:
SOx = sulfur oxide emissions
SCF = total sulfur content
= Qf x Df x Sf
Qf
= volume of fuel used
Df
= density of fuel
= factor 2, based on material balance
Sf
Lead (Pb) emissions from gasoline-fueled vehicles depends on the volume and
lead content of the fuel used and on the assumed percentage of lead that escapes through
the tail pipes or exhausts. Lead emissions were estimated as:
Pb = Qf x Pbf x L
Eq. 7
where:
Pbf = lead content of gasoline
L
= percent loss through the exhaust, assumed to be 75 percent
Carbon Dioxide Emissions
Carbon Dioxide (CO2) emissions caused by complete combustion of fossil fuel were
believed to have caused the depletion of the ozone layer. Although this type of emission is
not directly harmful to the health of people, its effect on ozone depletion and global warming
could be alarming. Carbon dioxide emission was computed using the sectoral approach
adopted from the PAGASA ALGAS study.
CO2 = (Df x NVf) x EFf x adjf
Eq. 8
where:
NVf
Df
= number of registered vehicles

= average distance traveled
169
Eff
= emission factor for CO2
Adjustment factor for: Gasoline = 0.5183
Diesel
= 0.3690
Regional Estimates
While this study only required a national aggregate of the physical and monetary
estimate, emissions in physical terms at the regional level were also generated. This
additional dimension was compiled and used as inputs in deciding the extent of the monetary
valuation of emissions generated by the sector. The same parameters and assumptions used
in the EMB Inventory in Metro Manila were adopted in the regional estimation, in the absence
of any studies conducted in the region.
6.2.2
Monetary Valuation
Monetary valuation of the emissions generated by the transport sector was

computed using maintenance cost valuation, which is equal to the cost that would be incurred
to minimize if not prevent degradation of the environment by the sector.
The maintenance costs used for this study are the sum of the following: a) the cost
of inspection and maintenance (I/M); b) the cost of emission converter; and c) the cost of lead
trap. These pollution abatement technologies were found to be the most effective way of
reducing emissions by the transport sector.
In valuing the degradation to air caused by the transportation activities, the
absorptive capacity of the atmosphere was considered. The evaluation of the absorptive
capacity of the different regions was based on the number of vehicles operating in the area,
the total land area and its geographic characteristics. Results of the evaluation showed that it
is only in the NCR that emissions exceeded the environments absorptive capacity. This is
the reason why monetary valuation of degradation caused by motor vehicle emissions was
only estimated for this region (see Appendix Table 6.1.8 and 6.1.9).
Inspection and Maintenance (I/M)
According to the ADB study (Engineering-Science 1993), the cost of repair and
maintenance is negligible. The cost incurred for the proper maintenance of vehicles is being
offset by the savings derived from the improved fuel efficiency and greater durability of the
vehicle. Hence, only the cost for the inspection was valued.
Inspection Cost = NI x I x NV
Eq. 9
where:
NI
I
Light
Heavy
NV
=
=
=
=
=
number of inspection/vehicle/year
cost of inspection/vehicle/year at 1993 price:
P 205
P 308
number of registered vehicles
The efficiency of I/M was estimated to be about 35 percent for PM and 40 percent
for VOC and CO.
170
Emission Converter
The use of emission converter addresses the problem of CO, NOx and HC
emissions. It effectively eliminates about 90 percent of these emissions. In addition to that, it
also reduces about 15 to 50 percent of total PM emissions.
The emission converter used in this study focused on diesel oxidation catalyst, a
type of converter for diesel engines. This was considered because of the practicality of
installing this type of converter. This does not need to be retrofitted and can be easily
installed in diesel engines. No engine modification is needed except for those vehicles that
badly need overhaul for greater durability and longer use of the vehicle, optimizing the use of
the installed converter.
The use of catalytic converter for gasoline fueled vehicles was excluded in the
valuation methodology. This is due to the high cost of retrofitting and engine modification.
Further, it would entail too many assumptions on the methodology that can not be supported
by the available data.
As such, the cost of emission converter was estimated using the formula:
EC
= ECdoc x NVd
Eq. 10
where:
ECdoc
NVd
= cost of diesel oxidation catalyst emission converter

= number of registered diesel-fueled vehicles
Lead Trap
An alternative for catalytic converter for gasoline-fueled vehicles is the lead trap.
Lead trap directly controls the lead particulate emissions from gasoline-fueled vehicles. The
cost of installing this device is relatively cheaper than the other devices. Conventional
mufflers are replaced by mufflers with lead trap device and it reduces at least 90 percent of
the total lead emissions in a vehicle. Similar to oxidizing catalysts, there is no need for engine
modification and retrofitting in installing this device.
Cost of Lead Trap = CLT x NVg
Eq. 11
Where:
CLT = annual cost of lead trap
NVg = number of registered gasoline-fueled vehicles
6.2.3
Sectoral Distribution of Emissions in Physical and Monetary Terms
Allocation of the estimates by industry/institutional sector, both for physical and

monetary terms, was based on the data on motor vehicle registration by type (i.e., private, for
hire, government, diplomatic and tax-exempt) and by the sectors fixed asset value as
reported in the CE (Table 6.1.2).
171
TABLE 6.1.2
ALLOCATION OF MOTOR VEHICLES BY SECTOR/INSTITUTION
Type of Motor
Vehicle
Utility
Vehicles
Cars
For Hire
Trucks
Buses
Motor Cycle (MC) /

Tricycles (TC)
Road Transport Services (PSIC 712) (TCS)
Government
Government Services (Govt.)

Household
(HH)
Private
Distributed to other industries

(OI) based on stocks of transport
equipment (1988 & 1994 CE)
Diplomatic
Rest of the World (ROW)
Tax Exempt
Rest of the World (ROW)
Household (HH)
The for hire vehicles are classified under the Road Transport Services Sector
(PSIC 712), the government under the Government Services Sector and diplomatic and
tax-exempt under the Rest of the World sector (Appendix Table 6.1.5 and 6.1.6). Private
vehicles, private cars and motorcycles/tricycles (MC/TC) are all assumed to belong to the
Households sector, since there is no indicator to segregate from them those belonging to
industries other than road transport services sector. For private utility vehicles and other
types of vehicles, they were assumed to belong to other industries and further allocated to the
different sub-sectors according to their shares of stock of transport equipment as reported in
the 1988 and 1994 CE.
6.3
RESULTS
6.3.1
Physical Estimates
6.3.1.1
Airborne Pollutants
For the whole country, among the airborne pollutants caused by transportation
sector which are directly harmful to the health of the people, CO registered the highest,
followed by HC, NOx, PM, VOC, SOx and Pb (Table 6.1.3). In 1988, CO emission was
recorded at 905,679 MT, while that of HC was 165,231 MT. Lead emissions recorded the
lowest level at 949 MT. In 1996, CO was still the most significant harmful emission, while Pb
emission was almost negligible (Figure 6.1.2).
On the other hand, CO2, which is not considered a ground level pollutant accounted
for a big bulk of the total emissions caused by transportation sector. In 1988, CO2 was
estimated to be about 27 million MT and it went up to 57 million MT in 1996. However, as
mentioned in the earlier part of the report, this emission is not directly harmful to the health of
people, but its effect on the depletion of the ozone layer and global warming is significant.
172
TABLE 6.1.3 TOTAL MOTOR VEHICLE EMISSIONS BY TYPE OF FUEL USED,

IN METRIC TONS, 1988 AND 1996
FUEL
USED
CO
HC
VOC
PB
PM
NOx
SOx
CO2
1988
905,679
165,231
35,094
949
51,642
122,340
26,423
26,667,129
Gas
814,255
138,778
34,955
949
17,140
41,386
4,117
3,446,701
91,424
26,453
140
34,501
80,954
22,306
23,220,427
1996
1,833,050
380,957
77,957
297
130,886
262,839
39,802
59,014,337
Gas
1,618,733
319,256
77,580
297
45,979
77,176
8,333
6,360,892
214,316
61,701
377
84,906
185,666
31,469
52,653,445
Diesel
Diesel
1
PM = PM10 + PMEX + PMTW
In Figure 6.1.2 there was an increasing trend for the majority of the emissions (e.g.,
NOx, HC, CO and VOC) except for Pb and SOx for the period between 1988 to 1996. Lead
dropped in 1993 due to the introduction of low lead gasoline in the market while the reduction
of sulfur content of fuel contributed to the significant drop of SOx in 1996.
By source, the Household and the Other Industries, which cover the sectors of
Manufacturing, Electricity, Trade, etc., contributed the biggest share for all emissions for the
entire study period. Each sector shared an almost equal amount, except for the household
sector, which posted a slightly bigger share. The Transport and Communication Sector (TCS)
only ranked third as a source of air pollutant (Figures 6.1.3 and 6.1.4). In 1996, the
household sector contributed an average share of about 40 percent of all these emissions,
while the other industries contributed 39 percent. TCS accounted for an average of 18
percent for all emissions while the government accounted for 2 percent. The contribution of
the rest of the world sector was negligible. Distribution of total emissions by source
(sector/institution) largely depends on the allocation of number and type of vehicles by
denomination, including the type of fuel used (see Appendix Tables 6.1.5 and 6.1.6).
6.3.2
Monetary Estimates
The value of total vehicular emissions in monetary terms where emissions

exceeded the absorptive capacity of the environment, amounted to P 339 million in 1988 and
P 1,404 million in 1996 (Appendix Tables 6.1.10 and 6.1.11). These values correspond to the
emissions generated in NCR. The NCR was previously identified as the only region in the
country where emissions from motor vehicles exceeded the absorptive capacity of the
environment (Appendix Tables 6.1.3 and 6.1.4).
The value of degradation to the environment caused by the land transport sector
amounted to P 56 million in 1988 and P 306 million in 1996, registering an average annual
increase of 25 percent from 1988 to 1994 (Table 6.1.4).
173
2,000,000
1,800,000
Pb (Lead)
1,000
1,600,000
900
800
1,400,000
700
600
1,200,000
500
400
300
1,000,000
200
100
800,000
0
600,000
400,000
200,000
0
HC
VOC
1988
FIGURE 6.1.2
Pb
1989
1990
CO
1991
PM
1992
1993
SOX
1994
NOX
1995
1996
TOTAL MOTOR VEHICLE EMISSIONS, IN METRIC TONS, 1988-1996
174
1988
1996
HYDROCARBON (HC)
HH
39%
Gov't.
4%
HH
39%
ROW
1%
Gov't.
2%
ROW
0.09%
TCS
18%
TCS
22%
OI
37%
VOLATILE ORGANIC
COMPOUNDS (VOC)
1988
Gov't. ROW
2%
3%
TCS
15%
HH
40%
HH
40%
1996
Gov't.
2%
ROW
0.16%
OI
40%
1988
TCS
20%
OI
38%
CARBON MONOXIDE (CO)

Gov't.
4%
ROW
2%
HH
43%
TCS
8%
1996
Gov't.
3%
ROW
0.15%
TCS
12%
OI
43%
HH
43%
1988
OI
42%
1996
LEAD (Pb)
Gov't.
3%
ROW
2%
TCS
15%
HH
39%
Gov't.
2%
ROW
0.19%
TCS
21%
HH
40%
OI
40%
FIGURE 6.1.3
OI
38%
PERCENT SHARE OF HC, VOC, CO AND PB BY SOURCE
175
1988
PARTICULATE MATTER (PM)

Gov't.
3%
HH
37%
ROW
0.41%
HH
36%
TCS
24%
1996
Gov't.
2%
ROW
0.04%
TCS
27%
OI
35%
OI
36%
1988
SULFUR OXIDES (SOx)

Gov't.
3%
HH
40%
ROW
0.42%
TCS
18%
HH
39%
1996
Gov't.
2%
ROW
0.11%
TCS
21%
OI
39%
1988
NITROGEN OXIDE (NOx)

Gov't.
4%
ROW
1%
TCS
12%
HH
42%
HH
42%
1996
Gov't.
2%
ROW
0.09%
CARBON DIOXIDE (CO2)

Gov't.
4%
ROW
0.25%
TCS
8%
TCS
16%
OI
40%
OI
41%
1988
HH
45%
OI
38%
HH
45%
1996
Gov't. ROW
2% 0.04%
TCS
10%
OI
43%
FIGURE 6.1.4
OI
43%
PERCENT SHARE OF PM, SOx, NOx AND CO2 BY SOURCE
176
6.3.3
As a percentage to the net value added of land transport subsector, environmental

degradation accounted for less than 0.47 percent, ranging from 0.28 to 0.75 percent from
1988 to 1996. Figure 6.1.5 shows the total cost of degradation to air by the land transport
subsector, relative to the NVA of the sector.
TABLE 6.1.4
Year

GVA
Depreciation
NVA
[1]
[2]
[3] = [1] -[2]
Environmental
1
Degradation
(EVA),
IN
EVA
[5] = [3] [4]
[4]
1988
19,215
2,186
17,029
56
16,973
1989
19,679
2,253
17,426
63
17,363
1990
26,239
2,711
23,528
76
23,452
1991
37,824
3,488
34,336
97
34,239
1992
39,097
4,165
34,932
127
34,805
1993
39,984
5,241
34,743
175
34,568
1994
42,070
5,965
36,105
225
35,880
1995
44,184
6,042
38,142
285
37,857
1996
47,542
6,244
41,298
306
40,992
Refer to the Pollution Control Cost of Motor Vehicle Emissions (used by Road Transport sector)
50,000
45,000
40,000
35,000
Environmental
Degradation Cost
30,000
Depreciation
25,000
20,000
EVA
15,000
10,000
5,000
0
1988
FIGURE 6.1.5
1989
1990
1991
1992
1993
1994
1995
1996
LAND
TRANSPORT
SECTOR:
EVA,
DEPRECIATION
AND
ENVIRONMENTAL DEGRADATION, IN MILLION PESOS (AT CURRENT
PRICES), 1988-1996
177
6.1.4
RECOMMENDATIONS
This study is still preliminary and subject to improvements and refinements. Data
support is limited especially on fuel consumption, emission factors, and monetary valuation
variables.
The emission factors need to be estimated based on actual conditions in the
country since most of the parameters used were borrowed from the USEPA. These were
derived based on different traffic conditions and mix of vehicles as compared to the
Philippines. In addition, there is a need for further study on the best end of pipe technology for
measuring emissions.
Further refinements need to be done on the allocation of emission and its cost to
the various sectors and economic activities.
Sub-national study is recommended to improve data support for such activity in the
regions as well as to validate the assumptions used in the regional estimates done in the
study.
178

RUNNING EXHAUST EMISSIONS IN GRAMS PER TRIP, BY VEHICLE TYPE AND BY
TYPE OF FUEL USED
Cold Start
Vehicle & Fuel
Type
Emission Factors1
Hot Start
Emission Factors1
NOx
VOC
CO
No. of
Trips/day
4.3
0.31
15.82
0.72
131.18
4.11
2
1
5.86
0.15
10.98
0.18
26.12
2.19
1
2
Gas
4.5
16.47
129.23
5.94
10.88
23.80
Diesel
1.1
0.83
4.02
0.74
0.16
2.68
0.87
12.48
69.99
0.84
4.22
9.83
10
NOx
VOC
CO
No. of
Trips/day
Cars
Gas
Diesel
Utility Vehicles
MC/TC
Gas
Diesel
Note:
1
Source: EMB.1993. 1990 Air Pollution Inventory in Metro Manila
EMISSION = EFf x (NTf x N0f x NVf)
Where:
Eff = emission factor by type of fuel
NTf = number of trips per day by type of fuel
Nof = number of days of operations by type of fuel
= 240 for gasoline-fueled vehicles
= 365 for diesel-fueled vehicles
NVf = number of registered motor vehicles by type of fuel

VOLATILE ORGANIC COMPOUNDS (VOC) EMISSIONS, BY VEHICLE TYPE AND BY
TYPE OF FUEL USED
Vehicle/
Fuel Type
VOC Emission Factors 1/

Evaporative
Diurnal
Hot Soak
(g/km)
(g/vehicle/day)
(g/trip)
Cars
Gas
10.19
Diesel
Utility Vehicles
Gas
Diesel
Trucks
Gas
NOT/
DAY
No. of
Operations
Distance
Traveled
(km/vehicle)
16.7
0.38
240
12,000
9.39
15.66
0.36
240
30,000
3.79
12.86
240
50,000
3.92
7.7
10
240
10,000
Diesel
MC/TC
Gas
Diesel
1/
Source: EMB.1993. 1990 Air Pollution Inventory in Metro Manila

* differ on the assumed no. of trips per vehicle per day
179

TOTAL MOTOR VEHICLE EMISSIONS, PHILIPPINES, IN METRIC TONS, 1988 - 1996
EMISSIONS (MT)
Year
HC
VOC
Pb
CO
PM
SOx
NOx
CO2
1988
1989
165,231
187,385
24,150
27,301
949
944
905,679
1,015,003
51,642
58,364
26,423
30,626
122,340
135,819
26,667,129
29,403,569
1990
212,897
30,946
485
1,148,751
66,064
34,109
151,887
32,756,181
1991
1992
225,491
245,601
32,294
34,776
652
739
1,193,310
1,274,294
72,637
81,769
37,749
39,336
162,682
178,462
35,204,592
38,308,115
1993
275,524
38,798
258
1,400,358
93,264
45,158
197,886
43,273,078
1994
1995
305,349
337,022
42,690
47,198
249
265
1,518,385 104,774
1,641,974 115,844
47,378
52,725
217,736
234,448
47,275,217
51,904,050
1996
380,957
53,270
297
1,833,050 130,886
39,802
262,839
59,014,337

TOTAL MOTOR VEHICLE EMISSIONS, NATIONAL CAPITAL REGION (NCR), IN METRIC
TONS, 1988-1996
EMISSIONS (MT)
Year
HC
VOC
Pb
1988
1989
67,259
76,906
9,831
11,205
386
387
1990
1991
187,385
94,676
1992
CO
PM
SOx
368,664
416,573
21,021
23,954
10,756
12,569
49,800
55,742
10,855,070
12,067,674
27,301
13,559
944 1,015,003
274 501,030
58,364
30,498
30,626
15,850
135,819
68,305
29,403,569
14,781,202
104,244
14,760
314
540,868
34,707
16,696
75,747
16,259,685
1993
1994
117,054
126,443
16,483
17,678
110
103
594,929
628,754
39,622
43,386
19,185
19,619
84,070
90,163
18,384,172
19,576,365
1995
137,296
19,227
108
668,907
47,192
21,479
95,509
21,144,668
1996
155,194
21,701
121
746,748
53,320
16,215
107,075
24,041,256
NOx
CO2
180

NUMBER OF REGISTERED MOTOR VEHICLES BY TYPE AND TYPE OF FUEL USED,
1988
Type of Vehicle
& Fuel Used
Total Cars
Gas
Private
349,637
340,982
For Hire
6,036
2,867
Gov't.
4,941
4,854
Tax
Exempt
Diplomat
11,857
11,834
4,697
4,561
136
Total
377,168
365,098
Diesel
8,655
3,169
87
23
Utility Vehicles
Gas
397,520
225,982
55,895
5,085
19,038
14,926
2,646
2,619
475,099
248,612
Diesel
171,538
50,810
4,112
27
226,487
Gas
95,740
12,042
5,435
197
5,241
1,071
33
11
106,449
13,321
Diesel
83,698
5,238
4,170
22
93,128
Gas
3,269
492
11,420
220
390
84
4
1
15,083
797
Diesel
2,777
11,200
306
14,286
MCs / TCs
Gas
Diesel
149,267
147,433
1,834
123,418
121,576
1,842
5,924
5,899
25
2,293
2,293
0
280,902
277,201
3,701
Trucks
Buses
Taxis
1,056
834
222
Gas
Diesel
TOTAL
12,070
1,056
834
222
Gas
995,433
726,931
203,260
130,779
35,534
26,834
16,833
16,758
4,697
4,561
1,255,757
905,863
Diesel
268,502
72,481
8,700
75
136
349,894
181

NUMBER OF REGISTERED MOTOR VEHICLES BY TYPE AND TYPE OF FUEL USED,
1996
Type of Vehicle
& Fuel Used
TOTAL CARS
Private
For Hire
Tax
Exempt
Gov't.
Diplomat
Total
641,738
12,819
5,473
795
3,273
664,098
626,794
9,368
5,346
733
2,803
645,044
Diesel
14,944
3,451
127
62
470
19,054
Utility Vehicles
928,159
144,193
28,400
325
1,101,077
Gas
462,503
6,960
17,482
189
487,134
Diesel
465,656
137,233
10,918
136
613,943
203,316
11,531
5,464
77
220,388
10,443
384
708
19
11,554
192,873
11,147
4,756
58
208,834
4,080
25,002
247
29,330
261
321
31
613
3,819
24,681
216
28,717
472,492
331,299
17,754
54
821,599
472,492
331,299
17,754
54
821,599
Gas
Trucks
Gas
Diesel
Buses
Gas
Diesel
MCs / TCs
Gas
Diesel
Taxis
Gas
Diesel
TOTAL
Gas
Diesel
38,480
38,480
28,634
28,634
9,846
9,846
2,249,785
563,324
57,338
1,252
3,273
2,874,972
1,572,493
376,966
41,321
995
2,803
1,994,578
677,292
186,358
16,017
257
470
880,394
182
FUEL CONSUMPTION IN THOUSAND LITERS, BY TYPE OF VEHICLE, BY TYPE

OF FUEL, 1988-1996
Vehicle/
Fuel Type
1988
1989
1990
1991
1992
1993
1994
1995
1996
TOTAL
2,921,307 3,401,487 3,731,889 3,856,863 4,448,343 5,038,224 5,383,479 6,123,739 6,828,812
Gas
1,389,660 1,629,750 1,750,749 1,591,113 1,798,449 2,020,155 2,216,842 2,630,541 2,972,375
Premium
979,758 1,167,855 1,277,565 1,165,311 1,327,809 1,513,478 1,681,848 1,761,976 2,023,879
Regular
409,902
461,895
473,184
425,802
470,640
506,677
533,291
590,345
619,820
1,703
278,220
328,675
Unleaded
Diesel
1,531,647 1,771,737 1,981,140 2,265,750 2,649,894 3,018,068 3,166,638 3,493,198 3,856,437
Cars
612,750
700,583
740,884
670,468
759,918
843,055
893,498 1,019,676 1,130,526
Gas
558,947
635,808
663,797
580,447
639,283
703,384
754,159
893,404 1,003,933
Premium
394,077
455,611
484,389
425,112
471,987
526,967
572,157
598,415
683,575
Regular
164,870
180,197
179,408
155,335
167,295
176,416
181,423
200,497
209,347
Unleaded
Diesel
Utility
Vehicles
579
94,491
111,012
53,804
64,775
77,086
90,021
120,635
139,671
139,339
126,273
126,592
1,372,829 1,596,863 1,779,556 1,959,551 2,270,329 2,591,161 2,721,882 3,091,498 3,415,228
Gas
381,389
448,150
491,452
449,416
503,200
548,417
580,335
662,913
725,940
Premium
268,892
321,138
358,625
329,147
371,517
410,868
440,282
444,029
494,290
Regular
112,497
127,012
132,827
120,269
131,684
137,549
139,607
148,771
151,378
446
70,113
80,272
Unleaded
Diesel
991,441 1,148,713 1,288,104 1,510,135 1,767,129 2,042,744 2,141,547 2,428,586 2,689,287
Trucks
430,521
485,583
527,290
576,688
631,276
716,488
731,847
819,054
931,985
Gas
22,856
25,699
26,495
20,854
18,983
19,561
20,672
15,224
17,218
Premium
16,114
18,416
19,334
15,273
14,015
14,655
15,683
10,197
11,724
Regular
6,742
7,284
7,161
5,581
4,968
4,906
4,973
3,416
3,590
Unleaded
16
1,610
1,904
Diesel
407,665
459,883
500,795
555,835
612,293
696,927
711,175
803,831
914,767
Buses
63,759
73,898
77,869
91,079
131,607
116,296
143,299
135,433
126,704
Gas
1,223
1,276
1,595
1,176
1,560
934
936
923
914
Premium
862
914
1,164
861
1,152
700
710
619
622
Regular
361
362
431
315
408
234
225
207
190
98
101
134,509
125,791
Unleaded
Diesel
MC / TC
62,537
72,622
76,275
89,903
130,048
115,362
142,362
441,447
544,560
606,290
559,076
655,213
771,224
892,953 1,058,077 1,224,369
Gas
425,246
518,816
567,409
539,220
635,424
747,860
860,739 1,058,077 1,224,369
Premium
299,813
371,776
414,053
394,918
469,138
560,288
653,016
708,716
833,669
Regular
125,433
147,040
153,357
144,302
166,285
187,571
207,062
237,453
255,314
661
111,908
135,387
16,201
25,744
38,881
19,855
19,789
23,364
32,214
Unleaded
Diesel
Source:
Energy Regulatory Board (ERB)

Department of Energy (DOE)
183

LAND AREA, POPULATION AND VEHICLE DENSITY BY REGION, 1994
Vehicle Registration
Region
Vehicle
Density
per Sq.
Km
Land
Area
(Sq. km.)
Vehicle
per
Popn.
Total
Population
New
Renewal
Total
PHILIPPINES
316,453
2,025,016
2,341,469
1,595
300,075
3.41
68,624,247
NCR
144,463
829,087
973,550
1,531
636.0
10.92
8,917,585
CAR
1,015
26,242
27,257
18,293.7
2.10
1,297,490
13,190
94,090
107,280
12,840.2
2.71
3,954,447
Region I
Region II
8,055
54,242
62,297
26,837.3
2.35
2,649,251
Region III
22,986
228,153
251,139
14
18,230.8
3.59
7,002,968
Region IV
43,479
226,834
270,313
46,924.4
2.86
9,449,207
Region V
4,903
48,530
53,433
17,632.5
1.22
4,391,398
Region VI
13,294
108,565
121,859
20,223.2
2.02
6,027,669
Region VII
28,817
137,127
165,944
11
14,951.5
3.21
5,161,992
Region VIII
4,712
32,050
36,762
21,431.7
1.07
3,446,240
Region IX
6,527
43,923
50,450
18,730.1
1.79
2,814,269
Region X
7,071
57,474
64,545
28,327.7
1.61
4,005,557
Region XI
15,458
105,011
120,469
31,692.8
2.35
5,127,257
Region XII
2,483
33,688
36,171
23,323.2
1.56
2,325,198

TOTAL MOTOR VEHICLE EMISSIONS IN METRIC TONS, BY REGION, 1994
EMISSIONS
AREA
HC
VOC
Pb
CO
PM
SOx
NOx
CO2
PHILIPPINES
305,349
42,690
249
1,518,385
104,774
47,378
217,736
47,275,217
NCR
126,443
17,678
103
628,754
43,386
19,619
90,163
19,576,365
CAR
3,586
501
17,830
1,230
556
2,557
555,154
Region I
14,051
1,964
11
69,872
4,821
2,180
10,020
2,175,465
Region II
8,096
1,132
40,257
2,778
1,256
5,773
1,253,411
Region III
32,677
4,568
27
162,491
11,212
5,070
23,301
5,059,184
Region IV
35,466
4,958
29
176,361
12,169
5,503
25,290
5,491,025
Region V
7,025
982
34,934
2,411
1,090
5,010
1,087,681
Region VI
15,937
2,228
13
79,247
5,468
2,473
11,364
2,467,384
Region VII
21,680
3,031
18
107,805
7,439
3,364
15,459
3,356,528
Region VIII
4,819
674
23,965
1,654
748
3,437
746,163
Region IX
6,633
927
32,984
2,276
1,029
4,730
1,026,963
Region X
8,457
1,182
42,051
2,902
1,312
6,030
1,309,274
Region XI
15,729
2,199
13
78,213
5,397
2,440
11,216
2,435,169
Region XII
4,750
664
23,621
1,630
737
3,387
735,451
184

TOTAL COST OF DEGRADATION, IN THOUSAND PESOS, BY SOURCE, 1988-1996
Source
Industries
TCS 1/
Other Industries
Household
1988
1989
1990
1991
1992
1993
1994
1995
1996
188,784
213,562
266,044
324,821
430,640
544,584
627,857
783,991
829,682
56,408
62,643
76,120
96,754
127,013
175,044
225,392
284,925
306,255
132,376
150,919
189,925
228,067
303,627
369,540
402,465
499,066
523,427
134,591
156,935
196,504
225,478
296,866
363,533
416,875
513,672
544,157
Government
9,586
11,144
13,667
15,010
17,505
20,818
22,507
26,463
28,002
Rest of the World
5,808
5,719
6,383
6,185
3,039
2,154
2,324
2,410
2,210
338,769
387,360
482,599
571,493
748,050
Total Cost
931,089 1,069,563 1,326,536 1,404,051
1/ Degradation cost used to adjust GVA of transport sector

TOTAL COST OF DEGRADATION, IN THOUSAND PESOS, BY TYPE OF POLLUTION
CONTROL, 1988 - 1996
Pollution
Control
Total
Inspection Cost
1988
1989
1990
1991
1992
1993
1994
1995
1996
338,769
387,360
482,599
571,493
748,050
931,089 1,069,563 1,326,536 1,404,051
62,936
83,270
112,542
137,200
174,446
229,338
231,096
306,061
344,056
Cost of Emission
Converter
138,958
167,095
200,680
242,007
339,365
423,386
515,133
645,384
686,165
Cost of Lead
Strap
136,875
136,995
169,377
192,287
234,239
278,365
323,333
375,091
373,830
185
Glossary of Selected Terms
GLOSSARY OF SELECTED TERMS1/

Abatement
Reducing the degree or intensity of, or eliminating pollution
Agroforestry
1. Collective term for land-use systems and technologies in which woody

perennials (trees, shrubs, palms, bamboos and so forth) are deliberately
used on the same land management unit as agricultural crops and/or
animals, in some form of either spatial arrangement or temporal
sequence. 2. The sustainable management of land to increase overall
production; combines agricultural crops, tree crops and forest plants
and/or animals while simultaneously or consequently applying
management practices which are compatible with the cultural patterns of
the local population.
Air Pollutant
Any discharges release or over propagation into the atmosphere and

includes but is not limited to, smoke, dust, soot, grime, carbon, fumes,
gases, odors, particulate matter, acids, or any combination thereof. Any
substance not usually present in atmosphere or measured there in
greater than usual concentration should be considered an air pollutant.
Air Pollution
The presence of contaminant or pollutant substances in the air that do

not disperse properly and interfere with human health or welfare, or
produce other harmful and environmental effects.
Algae
1. Chiefly aquatic, eukaryotic one-celled or multicellular plants without

true stems, roots, and leaves, that are typically autotrophic,
photosynthetic and contain chlorophyll. Algae are not typically found in
groundwater. 2. Microscopic plants which contain chlorophyll and live
floating or suspended in water. They also may be attached to structures,
rocks or other submerged surfaces. They are food for fish and small
aquatic animals. Excess algal growth can impart tastes and odors to
potable water. Algae produce oxygen during sunlight hours and use
oxygen during the night hours. Their biological activities appreciably
affect the pH and dissolved oxygen of the water.
Algal Blooms
1. Sudden spurts of algal growth, which can affect water quality

adversely and indicate potentially hazardous changes in local water
chemistry. 2. Sudden, massive growths of microscopic and macroscopic
plant life such as green or bluegreen algae, which develop in lakes and
reservoir.
Ammonia Nitrogen (NH3-N)
Derived from microbial metabolism of the nitrogenous compounds under

low oxygen condition (Chien, 1992); it exists in water both ionized (NH4)
and unionized (NH3) forms; however, pH and low level of dissolved
oxygen affects its toxicity; concentration greater than 0.20 mg/l can
cause fatalities to fish.
Anaerobic
1. A biological process that occurs in the absence of oxygen. 2. A

condition in which free (atmospheric) or dissolved oxygen is NOT
present in water. 3. Able to live, grow, or take place where free oxygen
is not present.
1/
Definition of terms was extensively drawn from the US EPA Glossary of Selected Terms and Abbreviations. Found
at http://www.epa.gov./ceisweb1/ceisdocs/glossary.html accessed June 11, 1999.
Aquaculture
Farming of aquatic organisms including fish, mollusks, crustaceans and

aquatic plants; it implies some form of intervention in the rearing process
to enhance production, such as regular stocking, feeding, protection from
predators, etc.
Aquifer
1.
An underground geological formation, or group of formations,
containing usable amounts of groundwater that can supply wells and
springs. 2. A water-bearing layer of rock (including gravel; and sand)
that will yield water in usable quantity to a well or spring.
Assimilative
capacity
The capacity of a natural body of water to receive wastewaters or toxic

materials without harmful effects and without damage to aquatic life or
humans who consume the water.
Bagasse
The fibrous material left after all of the juice has been squeezed from the
sugarcane. It consists mostly of stalk fibers but also contains leaves and
other trash brought in with the cane. Bagasse is about half water and
half-dry matter.
Baghouse
An air pollution control device that traps particulate matter by forcing gas
streams through large permeable bags usually made of glass fibers.
Beamhouse
wastes
Wastes obtained in the tanning industry from the curing, fleshing,

washing, dehairing, bating, pickling and degreasing of hides.
Biochemical
Oxygen Demand
1. The amount of oxygen consumed by microorganism (mainly bacteria)

and by chemical reactions in the biodegradation of organic matter. 2.
Oxygen required by microorganisms to degrade organic wastes; a
measure of organic loads of an industrial wastewater. 3. A measure of
the oxygen required to break down organic materials in water. Higher
organic loads require larger amounts of oxygen and may reduce the
amount of oxygen available for fish and aquatic life below acceptable
levels.
Biological
Oxygen Demand
(BOD5)
An indirect measure of the concentration of biologically degradable

material present in organic wastes. It usually reflects the amount of
oxygen consumed in five days by biological processes breaking down
organic waste.
Carbon Dioxide
(CO2)
A colorless, odorless, gas produced by burning fossil fuels, sometimes

referred, to as green house gas because it contributes to earth warming.
Carbon
Monoxide (CO)
A colorless, odorless, poisonous gas produced by incomplete fossil fuel

combustion.
Catalytic
Converter
1. Device fitted to the exhaust of motors cars to reduce air polluti9n by

either oxidation or reduction processes. 2. A motor vehicle pollution
control device designed to reduce emissions such as oxides of nitrogen,
hydrocarbons, and carbon monoxide.
Chemical
Oxygen Demand
(COD)
Index of water pollution measuring the mass concentration of oxygen

consumed by the chemical breakdown of organic and inorganic matter.
Clarifier
1. A tank in which solids settle to the bottom and are subsequently

removed as sludge. 2. A large circular or rectangular tank or basin in
which water is held for a period of time, during which the heavier
suspended solids settle to the bottom. Clarifiers are also called Settling
Basins and Sedimentation Basins.
Cold Start
Refers to a start after a period on engine shutoff between 12-36 hours.
Controlled
Pollutant
Discharges
Total pollutant discharges controlled through primary and secondary

treatment of wastewater generated by the industry.
Contour strip
farming
A kind of contour farming in which row crop are planted in strips,

between alternating strips of close-growing, erosions resistant forage
(grass, grain, hay) crops.
Crop rotation
A system of farming in which a regular succession of different crops are

planted on the same land area, as opposed to growing the same crop
time after time
Cyclone
An air pollution control device that removes larger particles -- generally

greater than one micron -- from an air stream through centrifugal force.
DichloroDiphenylTrichloroethane
(DDT)
The first chlorinated hydrocarbon insecticide chemical name. It has a

half-life of 15 years and can collect in fatty tissues of certain animals.
Depreciation
Cost of the fixed capital used up in the process of production during the
accounting period. Also known as Consumption of Fixed Capital.
Dipterocarp
Forest
Forest stand dominated by trees of dipterocarp species such as red and

white lauan, tanguile, tiaong, almon, bagtikan, mayapis Philippine
mahogany group, apitong and yakal.
Dipterocarp, old
growth
Tropical rain forest dominated by Dipterocarpaceae without traces of

commercial logging.
Dipterocarp,
residual
Tropical rain forest dominated by Dipterocarpaceae with traces of

commercial logging.
Dissolved
Oxygen
1. Important environmental parameter as it affects the solubility and

availability of many nutrients; low levels of DO can cause changes in
oxidation state of substances from the oxidized to the reduced form
which are often toxic. 2. Measure of water quality indicating free oxygen
dissolved in water. 3. The oxygen freely available in water, vital to fish
and other aquatic life and for the prevention of odors. DO levels are
considered a most important indicator of a water bodys ability to support
desirable aquatic life. Secondary and advanced waste treatment are
generally designed to ensure adequate DO in waste-receiving waters.
Diurnal
Emissions
Evaporative emissions which occurs during a typical daily temperature

increase and are affected directly by the ambient temperature rise which
a parked vehicle experiences.
Effluent
A general term denoting any waste water, partially or completely treated

or in its natural state, flowing out of a manufacturing plant, industrial plant
or treatment plant. Generally refers to wastes discharged into surface
waters.
Effluent Factor
The amount of pollutant generated in kilogram per year.
Electrostatic
Precipitator
(ESP)
1. A device that removes particles from a gas stream (smoke) after

combustion occurs. The ESP imparts an electrical charge to the
particles, causing them to adhere to metal plates inside the precipitator.
Rapping on the plates causes the particle to fall into a hopper for
disposal. 2. Air pollution control device that removes particulate matter
from an air stream by imparting an electrical charge to the particles for
mechanical collection at an electrode.
Emission
Pollution discharged into the atmosphere from smokestacks, other vents,

and surface areas of commercial or industrial facilities; from residential
chimneys; and from motor vehicle, locomotive, or aircraft exhausts.
Emission Factor
The relationship between the amount of pollution produced and the

amount of raw material processed. For example, an emission factor for a
blast furnace making iron would be the number of pounds of particulate
per ton of raw materials.
End of Pipe
Technology
Added technical installation for environmental control of emissions. They

operate independently from the production process or a re an identifiable
part added on to production facilities.
Environmentally
Critical Area
Any area of ecological and economic importance that is prone to

pollution (e.g. a lake which serves as fishing ground and a watershed
which serves as source of potable water).
Environmental
Degradation
Deterioration in environmental quality from ambient concentrations of

pollutants and other activities and processes such as improper land use
and natural disasters.
Environmental
Protection
Expenditures
Actual expenses incurred by industries, households, the government and

non-government organizations to avoid environmental degradation or
eliminating part or all of the effects after degradation has taken place.
Environmental
Protection
Services
Erosion
Actual expenses incurred by the government to avoid environmental

degradation or to eliminate the effects after degradation took place.
Eutrophication
1. The slow aging process during which a lake, estuary, or bay evolves
into a bog or marsh and eventually disappears. During the later stages
of eutrophication the water body is choked by abundant plant life due to
higher levels of nutritive compounds such nitrogen and phosphorus.
Human activities can accelerate the process. 2. The increase in the
nutrient level of a lake or other body of water, this usually causes an
increase in the growth of aquatic animal and plant life.
Evaporative
Running Losses
Evaporative emissions which occur when a gasoline-powered motor

vehicle is operated on the roadway.
Exhaust
Emissions
Tailpipe emissions from vehicles operating in a warmed up mode.
Extrapolation
Estimation of unknown values by extending or projecting from known

values.
Fossil Fuel
Fuel derived from ancient organic remains, e.g., peat, coal, crude oil, and
natural gas
The wearing away of soil by wind or water, intensified by land-clearing

practices related to farming, residential or industrial development, road
building, or logging.
Flue gas
The air coming out of a chimney after combustion in the burner it is

venting. It can include nitrogen oxides, carbon oxides, water vapor,
sulfur oxides, particles and many chemical pollutants.
Fugitive
Emissions
1. Emissions not caught by a capture system. 2. A precombustion

process whereby a low-sulfur coal is used in place of a higher sulfur coal
in a power plant to reduce sulfur dioxide emissions. 3. Illegally using
leaded gasoline in a car designed to use only unleaded.
Fungicide
Pesticide which are used to control, deter or destroy fungi on food or

grain crops.
Ground water
1. The supply of fresh water found beneath the Earths surface usually in
aquifers, which supply wells and springs. Because ground water is a
major source of drinking water, there is growing concern over
contamination from leaching agricultural or industrial pollutants or leaking
underground storage tanks. 2. Water found below the surface of the
land, usually in porous rock formations. Ground water is the source of
water found in wells and springs and is used frequently for drinking.
Hot Soak
Emissions
Evaporative emissions which occur when a vehicle is parked after a

period of hot running.
Hot Start
An engine start which occurs within a specific period of time after a

period of fully warmed up running.
Hydrocarbon
Compounds of hydrogen and carbon in various combinations that are

present in petroleum products and natural gas. Some hydrocarbons are
major pollutants, some may be carcinogenic and others contribute to
photochemical smog.
Insecticide
A pesticide compound specifically used to kill or prevent the growth of

insects.
Irrigation
Applying water or wastewater to land areas to supply the water and

nutrient needs of plants.
Leachate
Water that collects contaminants as it trickles through wastes, pesticides

or fertilizers. Leaching may occur in farming areas, feedlots, and landfills,
and may result in hazardous substances entering surface water, ground
water, or soil.
Leaching
1.
The process by which soluble substances are dissolved and
transported down through the soil by recharge. 2. The process by which
soluble constituents are dissolved and filtered through the soil by a
percolating fluid. (see Leachate).
Lead (Pb)
Is a heavy metal that occurs as a lead oxide aerosol or dust.

usually added to gasoline as an additive to increase octane rating.
Maintenance
Cost
A method that represents the expenditures incurred to avoid

environmental degradation or to eliminate the effects of such degradation
after the activity took place.
Methane
A colorless, non-poisonous, flammable gas created by anaerobic

decomposition of organic compounds.
Lead
Nitrogen (N)
A derivative fertilizer in treated and untreated sewage; as dissolve

nitrogen, it is toxic to fish; as ammonia and nitrate, it is a plant nutrient,
and thus, can lead to eutrophication.
Nitrate
Plant nutrient and inorganic fertilizer that enters water supply sources
from septic systems, animal feed lots, agricultural fertilizers, manure,
industrial waste waters, sanitary landfills and garbage dumps.
Nitrite, nitrogen
(NO2-N)
An intermediate in the process of nitrification. 2. Nitrous oxide salts use

in food preservation.
Nitrogen
A derivative fertilizer in treated and untreated sewage; as dissolve

nitrogen, it is toxic to fish; as ammonia and nitrate, it is a plant nutrient,
and thus, can lead to eutrophication.
Nitrogen Oxide
(NOx)
1. Product of combustion from transportation and stationary sources and

a major contributor to the formation of ozone in the troposphere and to
acid deposition.
2.
a colorless gas which is produced by fuel
combustion such as the burning of gasoline and diesel fuel in automobile
engines.
Nutrient
Any substance assimilated by living things that promote growth. The term
is generally applied to nitrogen and phosphorous in waste water, but is
also applied to other essential and trace elements.
On-site
On the same, or adjacent, property.
Ozone (O3)
Pungent, colorless, toxic gas that contains three atoms of oxygen in each
molecule. It occurs naturally at a concentration of about 0.01 parts per
milion (ppm) of air. Levels of 0.1 ppm are considered to be toxic. In the
stratosphere, ozone provides a protective layer shielding the earth from
the harmful effects of ultraviolet radiation on human beings and other
biota. In the troposphere, it is a major component of photochemical
smog, which seriously affects the human respiratory system.
Particulate
Matter
1. A very small solid suspended in water which can vary widely in size,
shape, density, and electrical charge. Colloidal and dispersed
particulates are artificially gathered together by the processes of
coagulation and flocculation. 2. Liquid or solid particles such as dust,
smoke, mist, or smog found in air emissions.
Pesticide
Substances intended to repel, kill, or control any species designated a

pest including weeds, insects, rodents, fungi, bacteria, or other
organisms. The family of pesticides includes herbicides, insecticides,
rodenticides, fungicides and bactericides.
pH
1. The measure of acidity or alkalinity of a chemical solution, from 014.

Anything neutral, for example, has a pH of 7. Acids have pH less than 7,
bases (alkaline) greater than 7.2. An expression of the intensity of the
basic or acid condition of a liquid. Mathematically, pH is the logarithm
(base 10) of the reciprocal of the hydrogen ion concentration, (H+). The
pH may range from 0 to 14, where 0 is most acid, 14 most basic, and 7
neutral.: Natural waters usually have a pH between 6.5 and 8.5.
Phytoplankton
Small, usually microscopic plants (such as algae), found in lakes,

reservoirs, and other bodies of water.
PM10
These are the type of particulates with an aerodynamic diameter of 10

microns or less. The major components of PM10 are dust particles,
nitrates and sulfates.
Orthophosphate
(PO4-P)
An element that is essential for growth of microorganisms and is

considered to be the major contributor to the eutrophication effect
observed in receiving wastes like algal blooms.
Pollution
Any substances in water, soil, or air that degrade the natural quality of
the environment, offend the senses of sight, taste, or smell, or cause a
health hazard.
The usefulness of the natural resource is usually
impaired by the presence of pollutants and contaminants.
Pollution Loads
The total pollutants generated at the source; it may also be called as the
total mouth-of-pipe pollutants discharges.
Potable Water
Water that is safe and satisfactory for drinking and cooking.
Radionuclide
1. Radioactive particle, man-made or natural, with a distinct atomic

weight number. Can have a long life as soil or water pollutants. 2. Any
man-made or natural element which emits radiation in the form of alpha
or beta particles, or as gamma rays.
Running
Exhaust
Emissions
Tailpipe emissions from vehicle operating in the roadway.
Settleable Solids
Terms applied to the material settling out of suspension within a definite

period.
Scrubber
An air pollution device that uses a spray of water or reactant or a dry

process to trap pollutants in emissions.
Sludge
1. A semi-solid residue from any of a number of air or water treatment

processes; can be a hazardous waste. 2. The watery mixture of
insoluble matter resulting from some pollution control techniques.
Slurry
1. Watery mixture of insoluble matter resulting from some pollution

control techniques. 2. A watery mixture or suspension of insoluble (not
dissolved) matters; a thin water mud or any substance resembling it
(such as grit slurry or a lime slurry). 3. A pumpable mixture of solids and
fluid.
Solid Waste
Non-liquid, non-soluble materials ranging from municipal garbage to

industrial wastes that contain complex and sometimes hazardous
substances. Solid wastes also include sewage sludge, agricultural
refuse, demolition wastes, and mining residues. Technically, solid waste
also refers to liquids and gases in containers.
Sulfur Dioxide
(SO2)
A pungent, colorless, gaseous pollutant formed primarily by the

combustion of fossil fuels.
Sulfur Oxide
(SOx):
Sulfur Oxide is a gaseous emission primarily composed of sulfur dioxide

and sulfur trioxide. It is produced from the combustion of fuels containing
sulfur, such as coal, fuel oil and diesel.
Surface water
All water naturally open to the atmosphere (rivers, lakes, reservoirs,

ponds, streams, impoundments, seas, estuaries, etc.) and all springs,
wells, or other collectors directly influenced by surface water.
Suspended
Solids (SS)
1. Settle to the bottom of water bodies or washed up on the banks and

accelerate the normal rate of filling in the waterways; solids that do not
settle reduce waters transparency, sunlight penetration and biological
activity; also clog animal and plant surface. 2. Small particles of solid
pollutants that float on the surface of, or are suspended in, sewage or
other liquids. They resist removal by conventional means.
Tailings
Residue of raw material or waste separated out during the processing of

crops or mineral ores.
Total Dissolved
Solids (TDS
Consist of both organic and inorganic dissolved solids; the latter include,
among others, chloride, phosphates, nitrates and other metals; these are
considered less polluting than organic solids which are usually oxidized
rapidly by microorganisms in the receiving streams resulting in the loss of
DO and the accompanying ill-effects of deoxygenated water.
Total
Suspended
Solids (TSS)
1. Objectionable in wastes for varied reasons; minerals and organic

suspended matters can lead to silting and by blanketing the river bed,
can cause destruction of plant and animal life and render the areas
unsuitable for spawning; gritty materials can also cause physical injury to
fish; greatly affected by climatic condition and partly by the amount of
pollution taking place. 2. A measure of the suspended solids in
wastewater, effluent, or water bodies, determined by tests for total
suspended non-filterable solids (see solid suspended solids).
Uncontrolled
Pollutant
Discharges
The total end-of-pipe pollutants

assimilated pollutant discharges.
Volatile Organic
Compound
(VOC)
1. Any organic compound which evaporates readily to the atmosphere.

Contributes significantly to photochemical smog production and certain
health problems. 2. Results from vaporation in tanks and incomplete
combustion in automobile engines and industrial boilers. Is sometimes
referred to as TOG (Total Organic Compound).
Wastewater
1. The spent or used water from home, community, farm, or industry that
contains dissolved or suspended matter. 2. The used water and solids
from a community (including used water from industrial processes) that
flow to a treatment plant. Storm water, surface water, and groundwater
infiltration also may be included in the wastewater that enters a
wastewater treatment plant.
The term sewage usually refers to
households wastes by this word is being replaced by the term
wastewater.
discharges
less
environmentally

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Philippine Environmental Degradation

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Environmental Degradation due to

Selected Economic Activities

Republic of the Philippines

NATIONAL STATISTICAL COORDINATION BOARD

UNITED NATIONS DEVELOPMENT PROGRAMME

Environmental Degradation Due to Selected Economic Activities

Environmental Degradation Due to Selected Economic Activities

Volume of Tuna Fish Canned, BOD5 Effluents and PM Emissions, In

Total Environmental Cost: Control of BOD5 and PM, In Thousand

Environmentally Adjusted Net Value Added (EVA) of Fish Canning

Volume of Production of Cotton Textile Industry, BOD5 and PM, In

Environmental Degradation Cost for BOD5 and PM, in Thousand

Environmentally Adjusted Net Value Added (EVA) of Textile Industry,

Average Production of Leather, Wastewater Flow Ratio and BOD

Average Cost of Treating Wastewater, In Pesos, 1994.................................... 77

Estimated BOD In Wastewater Discharges of Beamhouse and

Total Cost of Treating Wastewater In Leather Tanning Industry, In

Environmentally Adjusted Net Value Added (EVA), In Thousand

Volume of Production, VOC and PM10 Emissions, In Metric Tons,

Environmentally Adjusted Net Value Added (EVA), In Thousand

Environmental Degradation Due to Selected Economic Activities

Raw Sugar Production, BOD5 Effluents and PM Emissions, In Metric

Environmental Cost: BOD5 and PM Control Cost, In Thousand

Environmentally Adjusted Net Value Added (EVA), In Thousand

Clinker PM Emission Factors In Kilograms Per Metric Ton of Clinker,

Clinker Production and PM Emissions, By Process Type, In Metric

Environmentally Adjusted Net Value Added (EVA), In Thousand

Emission Factors Used to Estimate The Pollutants Generated By

Environmentally Adjusted Net Value Added (EVA) Petroleum

Gold Ore Treated, Gold Production and Tailings Generated By

Environmentally Adjusted Net Value Added (EVA), In Million Pesos

Fuel Characteristics ........................................................................................ 134

Emission Factors: NOx, PM, SOx .................................................................. 135

Load Correction Factors ................................................................................. 135

Environmental Degradation Due to Selected Economic Activities

Gross Electricity Generation of Power Plants, In Gigawatts, 19881995 ............................................................................................................... 137

Estimated Fuel Consumption (EFC) of Power Plants, In Million Metric

Total Emissions From Bunker Oil Fuel-Based Power Plants, In

Total Emissions From Diesel Oil Fuel-Based Power, In Thousand

Total Emissions From Coal-Fired Power Plants, In Thousand Metric

5.1.10 Share of Gross Generation and Total Emissions By Type of Power

LAND TRANSPORT SERVICES

Type of Emissions By Source ......................................................................... 168

Allocation of Motor Vehicles By Sector/Institution .......................................... 172

Total Motor Vehicle Emissions By Type of Fuel Used, In Metric Tons,

Environmentally Adjusted Net Value Added (EVA), In Million Pesos

Environmental Degradation Due to Selected Economic Activities

AGRICULTURE, FISHERY AND FORESTRY

Upland Palay Production Process ...................................................................... 5

Palay Farming: EVA, Depreciation and Environmental Cost, In

Intensive Shrimp Aquacultue

Production Process of Intensive Shrimp Aquaculture....................................... 24

Intensive Shrimp Aquaculture: EVA, Depreciation and Environmental

Hog Raising Production Process ..................................................................... 37

Hog Industry: EVA, Depreciation and Environmental Degradation

Logging of Dipterocarp and Pine Forest

Logging Industry Process Flow......................................................................... 48

Logged Area, Dipterocarp and Pine Forests, In Thousand Hectares,

Logging Industry: EVA, Depreciation and Environmental

Tuna Canning Process Flow............................................................................. 58

Fish Canning Industry: EVA, Depreciation and Environmental Cost,

Textile Industry Process Flow ........................................................................... 66

Textile Cotton Industry: EVA, Depreciation and Environmental Cost