The report is a first step in a processtowards the use of environmental damage cost assessments,for priority setting, and as an instrument for integratingenvironment, into economic, and social development. Thereport provides estimates of damage, and remediation costfor several areas of the environment, and, as areas ofpriority are identified, further analysis would be requiredfor more accurate estimates. The damage cost ofenvironmental degradation in Egypt in 1999, is estimated at3.2-6.4 percent of GDP, with a mean estimate of 4.8 of GDP.In addition, the damage cost to the global environment isestimated at 0.6 percent of GDP. The cost of air pollutionis assessed at 1.1-3.2 percent of GDP (urban outdoor andrural indoor), followed by soil degradation at 1.0-1.4percent (erosion and salinity). In the area of water, thedamage cost is estimated at 0.7-1.2 percent of GDP (mostlyfrom the lack of safe water, sanitation and hygiene). Costof coastal zone degradation is estimated at 0.2.-0.4 percentof GDP, and, inadequate waste management at around 0.2percent of GDP. Of the total damage cost, about two thirdscomes from damages to health, and a third from naturalresource degradation. It should be noted that no costestimate is provided for degradation associated withindustrial, hazardous, and hospital waste, as sufficientdata were unavailable. Similarly, cost assessment ofdegradation associated with inadequately treated wastewateris limited, due to data constraints. Cost is also presentedfor a limited number of remedial actions, in each of theenvironmental areas for which damage cost is estimated. Moredetailed analysis is required in future work, in order tocompare benefits of remediation, to reduction in damagemarginal cost.
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