Economic effects ofwaterpollution in the lowerbasin of the Coatzacoalcos river, Mexico

Abstract

Costs and benefits associated to health effects stemmed from water pollution and water treatment were estimated for the inhabitants of the municipalities of Coatzacoalcos, Minatitlán and Cosoleacaque. Even though there is no background information for this regional analysis, this work allows to reach conclusions and important recommendations despite its limited scope. In order to calculate avoided costs, something as delicate as the value of human life was estimated using the human capital method. Comparing water treatment costs against the annual income of the three municipalities understudy, costs surpass at least times the income; according to this result, financially speaking, the project is totally nonviable. But with a growing population and increasing industrial activity in the region, the concentration of polluting substances in the Coatzacoalcos river can reach non-controllable levels. Therefore, the investment, although high, could be greater if no promt action is taken. Leaving the degradation and exhaustion levels of the river as they are today, for the sake of keeping today's income, may jeopardize the possibility of income generation in the future, because no water or human capital is more expensive than that which is not available.