Environmental investment in the Lybian cement and iron and steel industrial sectors - measuring the environmental investment yield

Rhumah, AM

Abstract

The aims of this PhD research were to investigate the nature of environmental
pollution in the Libyan Cement and Iron & Steel Industrial Sectors, identify
associated environmental improvements from abatement measures and to develop an
approach by which to measure the yield returns on such environmental investments.
The study reviewed a range of research literature related to three key areas that form
the core foundation of the research. These were investment theory, environmental
issues and imputing values for non-market assets. A set of criteria was developed and
adopted for searching, selecting and reviewing the research literature related to these
areas. Using a two case-study approach, data collection methodologies were carried
out by structured face-to-face interviews with thirty-three environmental managers
and financial managers of the Libyan Cement Company (LCC) and the Libyan Iron &
Steel Company (LISCO). The data collection and analysis involved identifying and
assessing environmental pollution concerns within each company and the
corresponding improvements in environmental performance from the abatement
measures.
The research developed cost benefit analysis valuation techniques to award monetary
values to the identified environmental productivity improvements, measured in
percentage dust particulates reduction, gas emission reduction, and water percentage
usage and solid waste efficiency improvements. Under the cost benefit approach, the
research determined the yields on the environmental investments by the use of
hedonic price valuation. Sensitivity analysis was used to determine the calculated
yields for a range of estimated productivities and discount rates to reduce uncertainty
in the estimations. Experimentation with a range of values offered insights into yields
under different situations. The study results identified the impacts relating to air
pollution, liquid pollution, and solid pollution and valued those that had economic
significance and for which data was available. The interview findings revealed that
the mam environmental issues of the LISCO Company was water usage and the
quantity of solid waste, while the main environmental issues of LCC Company was
air pollution, predominantly in the form of dust and gas emissions. The environmental
investment returns of these two companies were higher than the interest rate in Libya.
The study contributed to knowledge in the environmental management field. It
furthermore fills the gap in knowledge in environmental investments in the Libyan
context.

Citation

Rhumah, A. Environmental investment in the Lybian cement and iron and steel industrial sectors - measuring the environmental investment yield. (Thesis). Salford : University of Salford

• Thesis Type: Thesis
• Deposit Date: Oct 3, 2012
• Award Date: Jan 1, 2010