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Int. J. Green Economics, Vol. 5, No. 1, 2011 87
Copyright © 2011 Inderscience Enterprises Ltd.
Industrial development and the trade-off to
environment: measurement techniques, meanings
and outcomes in the context of water poverty in
Egypt
Doaa Salman
Faculty of Management Sciences,
October University for Modern Sciences and Arts (MSA),
Intersection 26 of July Road and Wahat Road, October City, Egypt
Fax: 00202374037609
E-mail: doaaslman@yahoo.com
E-mail: doaaslman@msa.eun.eg
Abstract: Industrialisation is one of the main pillars of economic development
but it is usually associated with significantly negative impacts on the
environment. Environmental damage impedes development efforts; destroys
resources; especially water; and redirects government objectives towards
reducing pollutants emission. This study aims to estimate the pollution load for
the industrial sectors in Egypt using industrial pollution projection system
(IPPS), with respect to employment. These projections are based on the
four-digit levels in the international standard industrial classification (ISIC).
The purpose of such estimation is to provide an assessment to quantify the
effects of the industrial pollution in Egypt, to guide the regulatory framework
with information to prioritise its monitoring efforts, and more efficient
managing of resources. It also addresses the potential consequences of
industrial pollution on water poverty.
Keywords: industrial pollution projection system; IPPS; pollution intensity;
international standard industrial classification; ISIC; employment; development;
water poverty; pollution load; Egypt.
Reference to this paper should be made as follows: Salman, D. (2011)
‘Industrial development and the trade-off to environment: measurement
techniques, meanings and outcomes in the context of water poverty in Egypt’,
Int. J. Green Economics, Vol. 5, No. 1, pp.87–108.
Biographical notes: Doaa Salman is an Assistant Professor of Economics at
the University of MSA – Egypt. She obtained her PhD from Ain Shams
University. Her current research interests relate primarily, though not
exclusively, to two areas: institutional setting and regulation to environmental
problems, and the role of competitiveness and technology to deepen
development.
1 Introduction
People all over the world are confronted with the pressing challenge of water pollution.
The complexity of the challenge of water pollution is based on the different scenarios that
88 D. Salman
pollution can take, and variations in scale, local, regional or global – at which pollution
can develop. All the world’s largest rivers including the Ganges, Yangstse, Mississippi,
Nile and even the Amazon need careful environmental assessment to protect them from
environmental deterioration. To avoid deterioration they require sustainable management
due to increasing human pressures on global freshwater resources (Meybeck et al., 1989;
Chapman, 1992; UNEP, 1999).
In Egypt the River Nile provides more than 95% of its freshwater resources; the
agricultural sector demands more than 86.4% of the total water supply, whereas, the
industrial and domestic water demands constitute 7.7% and 5.8% respectively (FAO,
2008). These continuous demands put the river Nile under increasing pressure from
population growth and industrial development, and it is vital that an ecological
assessment is incorporated into a programme to manage the Nile, under the terms of the
Convention for Sustainable Development. Moreover, Egypt’s economic growth has been
accompanied by a growth in energy use, consequently, increasing the level of pollution
that is highly related with the industry composition, which was characterised by a
significant increase in the heavily polluting industries.
During the last 50 years, industrial development was a major feature in Egypt as a
result of development in construction movement. The industrial base was the prime
source of goods and services, employment, and national wealth that sustains economies.
Interestingly, industry’s role in achieving national development strategies has increased,
but this expansion in industrialisation without previous environmental planning has led to
environmental deterioration in the form of different industrial pollution scenarios (water,
air, and soil). The problem in Egypt is based on the concentration of the majority of
industries and inhabitants being situated beside the Nile valley and delta. This
concentration has resulted in all forms of pollution especially water pollution; as many
industrial firms release waste in the Nile River. The Nile River is one of the world’s
largest rivers – it flows 1,350 km from the Aswan High Dam, to its discharge into the
Mediterranean Sea. The annual discharge from the Aswan High Dam is 90 km3, although
less than 25% of this flow ultimately reaches the Mediterranean due to evaporation and
abstraction for irrigation. Within the catchments in Egypt there is a human population of
over 75 million.
Researchers have estimated that the environmental problems resulting from industry
represent 23% of total pollution in Egypt, the same percent as vehicle exhaust, and
followed by 12% from burning municipal waste (Moussa and Abdelkhalek, 2007). The
role of the Egyptian industrial sector was crucial in economic development as it
contributed to the growth in gross domestic product (GDP) and attracts local employees.
The petroleum industry is one of the most dynamic and flourishing sectors in the
Egyptian economy, chemical products rank first with its participation in the GDP by
25%; non-metallic mineral products by 15.6%; refined petroleum by 12.9%, accounting
for 30% of the country’s exports, and providing for 95% of Egypt’s energy needs.
Moreover, textiles, wearing apparel account for 11.9% (see Figure 1) of total exports.
Thus, while the textile and apparel industry in Egypt appears to be one of the strongest
candidates for driving growth through global supply chains, industry faces significant
challenges in growing into international markets due to severe competition.
Industrial development and the trade-off to environment 89
Figure 1 Egyptian industries shares in GDP during 2007 (see online version for colours)
Source: UNIDO (2009); data calculated by the author
Furthermore, the industrial sector in Egypt attracted around 948,350 employees in 2007.
Figure 2 illustrates that around 30% of total employees were working in the textile
industries; 22%, related to its long tradition in textile, locally available raw materials,
competitive labour and utility costs. Manufacture of basic chemicals such as rubber
product counts for 10.5% of employees, and 8% in manufacturing of non-metallic
mineral products.
Figure 2 Relative importance of each industry according to number of engaged employee – 2007
(see online version for colours)
Source: UNIDO (2009); data calculated by the author
The Egyptian Government has become increasingly aware of the challenges posed by the
rapidly growing demands for freshwater, together with Egypt’s fixed annual water share
of the Nile River. Within this limitation of water resources, and the government aims to
90 D. Salman
bound pollution (rather than it become unavoidable), to minimise the sources of industrial
pollution emission. This problem requires up to date information, and data about
pollution load of each industry in order to take the appropriate effective environmental
actions.
1.1 Research objectives
The main goal of this paper is to estimate the pollution load for the industrial sectors in
Egypt using industrial pollution projection system (IPPS), with respect to employment
and output. IPPS will enhance pollution control in identifying the most polluting
industrial sectors in developing countries, reducing cost, time and increasing the level of
enforcement. Projections are based on the four-digit levels in the international standard
industrial classification (ISIC), and assessing the status of water quality in Egypt. The
target of this estimation is to guide the regulatory frame work with information to
prioritise its monitoring efforts, and to manage quality of water more efficiently.
1.2 Methodology
This study uses the IPPS modelling system which combines data from industrial activity
(such as production and employment) with data on pollution emissions to calculate
pollution intensity factors, i.e., the level of pollution emissions per unit of industrial
activity (define as pollution per unit of output or pollution per unit of employment)
(Hettige et al., 1994; Benoit and Craig, 2001); with respect to the three key economic
variables – total output, value added and employment. The following section will
estimate the pollution load of industrial sectors in Egypt using IPPS pollution intensity
with respect to employment. This was based on the four digit levels of aggregation in the
ISIC for each type of pollution. Pollution intensities have initially been calculated with
data available in the USA from the US Manufacturing Census (MC) and the US
Environmental Protection Agency (EPA).
1.3 Data
The main sources of data were the US MC and the US EPA. The MC contains
information for approximately 200,000 plants in the USA, while EPA maintains a
number of databases on pollution emissions. These include the toxics release inventory
(TRI), the aerometric information retrieval system (AIRS), the national pollutant
discharge elimination system (NPDES), the human health and eco-toxicity database
(HHED) and the longitudinal research database (LRD). All of these datasets have been
used in the calculation of pollution intensities for approximately 20,000 plants.
Employment data of industrial sectors in Egypt available from the UNIDO 2007; is
used for estimating pollution load in ton/yr; the lower bound (LB) pollution intensities by
medium with respect to employment were obtained from the literature (Hettige et al.,
1994). Moreover, Hettige et al. (1994) has shown that the ranking of industrial sectors
was almost identical whether the values of output, or employment were used as the unit
of measurement in the USA (Hettige et al., 1995). Therefore, the choice of the unit of
measurement would not appear to impact the ranking of industrial sectors by their
pollution load. This was used to calculate the pollution load for the ten major industrial
sectors, according to ISIC code, to conform to ten major sectors in Egypt.
Industrial development and the trade-off to environment 91
2 Industrial pollution scenarios
2.1 Air pollution
Emission into the air was estimated based on emission of total suspended particulate
(TSP); sulphur oxide (SO2); nitrogen oxide (NO2); carbon monoxide (CO); fine
particulate (FP) and volatile organic carbon (VOC) whose pollution intensities were
available (Hettige et al., 1994).
Studies classify emission into suspended particulate and gaseous. Suspended PM can
be categorised according to total suspended particles: the finer fraction, PM10, and the
most hazardous, PM2.5 (median aerodynamic diameters of less than 10 microns and
2.5 microns, respectively). Much of the PM2.5 consists of secondary pollutants created by
the condensation of gaseous pollutants – for example, SO2 and NO2.
Types of suspended PM include diesel exhaust particles; coal fly ash; wood smoke;
mineral dusts, such as coal, asbestos, limestone, and cement; metal dusts and fumes; acid
mists (for example, sulphuric acid); and pesticide mists (Katsouyanni, 2003). While,
gaseous pollutants include sulphur compounds such as SO2 and sulphur trioxide; CO;
nitrogen compounds such as nitric oxide, NO2, and ammonia; organic compounds such as
hydrocarbons; volatile organic compounds; polycyclic aromatic hydrocarbons (PAHs)
and halogen derivatives such as aldehydes; and odorous substances. Volatile organic
compounds were released from burning fuel (gasoline, oil, coal, wood, charcoal, natural
gas, and so on); solvents, paints, glues, and other products commonly used at work or at
home. Volatile organic compounds include such chemicals as benzene, toluene,
methylene chloride, and methyl chloroform.
The Egyptian Environmental Affairs Agency (EEAA, 2008) measured the annual
inhaled particulates concentrations during the previous five years (2004–2008), and
showed that, the annual average concentrations in 2007 and 2008 were 151 μg/m3 and
137 μg/m3 successively. Although, the concentration decreased, it still exceeded the
annual average permissible limits of environmental law (70 μg/m3) (Figure 3).
Figure 3 The annual average concentration of suspended particulates (PM10) during 2004–2008
in Egypt (see online version for colours)
Source: EEAA (2008)
92 D. Salman
The figure illustrates a marked a reduction in dust concentration in all monitoring stations
measured during 2008 when compared 2004 and 2007 levels.
2.1.1 Ranking industries according to air pollution
In Egypt, the petroleum refiners industry rank highest in their contribution to air pollution
load by 35.1%, followed by the cement industry with 28.3%, and then the iron and steel
industry with a contribution of 9.78% (Figure 4). According to the Ministry of
Environmental Affairs, and the EEAA reports in 2004 conclude that the petroleum sector
was responsible for 9% of the particulate air pollution while other non-fuel industry
contribute with 23%.
Figure 4 Ranking industries according to their contribution in air pollution load (see online
version for colours)
Source: Data calculated by the author (Appendix – Table 4)
Air pollution in developing countries presents a burden as it is responsible for many
diseases, including chronic obstructive pulmonary disease (COPD), asthma, acute
respiratory disease, and ischemic heart disease, with links to cancer, fetal abnormalities,
low birth weight, and other less documented effects (Krewski et al., 2005; Yang et al.,
2004; Goldberg and Burnett, 2005). The other diseases mentioned above fall far below
1% of the disease burden. In the lower-mortality developing countries, respiratory
infections slide to third place (4.1%), with COPD (3.8%) and ischemic heart disease
(3.2%) making it into the top 10 leading diseases (Ezzati et al., 2003).
2.2 Water pollution
Chemicals can enter running water from a point source or a non-point source. Point
source pollution is due to release from a single source, such as an industrial site, while
non-point-source pollution involves many small sources that combine to cause significant
pollution. For instance, the movement of rain or irrigation water over land picks up
pollutants such as fertilisers, herbicides, and insecticides, and carries them into rivers,
Industrial development and the trade-off to environment 93
lakes, reservoirs, coastal waters, or groundwater. Another non-point source was storm
water that collects on roads and eventually reaches rivers or lakes (World Bank, 1999).
Moreover, Industrial wastewater was one of the main sources of pollution in the
River Nile, canals and drainages that may penetrate into groundwater if it is illegally
pumped into the soil. The main sources of pollution included: biological oxygen demand
(BOD); created by organic waste decaying in the water body. Major sources of BOD
were pulp, and paper mills and municipal sewage. If dissolved oxygen was depressed to
zero, all fish died, and anaerobic (i.e., without oxygen), decomposition generates noxious
gases (e.g., hydrogen sulphide). Also, total suspended solids (TSS), which are small
non-poisonous non-organic particles that threaten the natural water system.
2.2.1 Ranking industries according to water pollution
It is estimated that the iron and steel industry contribute with 73% from TSS; non-ferrous
metal basic industries with 9.24%; manufacturing of drug and medicine by 6.16%. While,
manufacture of dairy products participate by 24.37% from BOD in water pollution load;
followed by 17.9% in the manufacturing of pulp, paper and paperboard (Figure 5). The
water pollution load projection shows that the iron and steel industry contributes by 70%
in water pollution followed by the non-ferrous metal, and manufacturing of drugs by
6.5%. Chemical industries contributes in pollution with heavy metals, organic and
inorganic chemicals.
Figure 5 Ranking industries according to its contribution in water pollution load (see online
version for colours)
Source: Data calculated by the author (Appendix – Table 5)
About 129 industrial facilities were located along the Nile River or the water courses
among which 102 industrial facilities release their waste product directly or indirectly
(about 4.047 BCM/year) into the River Nile; some of these facilities stopped disposing of
waste completely. While, others comply with law no. 48/1982 and law no. 4/1994
regarding protection of the Nile, and water streams from pollution. On the other hand,
violating facilities were committed to implementing an environmental compliance plan to
adjust their conditions, and legal procedures were taken against other violating facilities
(EEAA, 2008).
94 D. Salman
2.3 Chemical toxic materials
Toxic materials can affect the health of aquatic organisms, and their consumers, and
those drinking contaminated waters. Toxicants include heavy metals (e.g., lead, mercury),
chlorinated hydrocarbons (e.g., DDT, PCBs), PAHs (e.g., benzopyrene) and phthalates
(e.g., dibutyl phthalate). They originate from many sources as a result of the large
quantities of chemicals used in industries. Mixtures of toxic materials can be toxic even if
their individual concentrations are below lethally toxic levels. Common toxic chemicals
considered in estimating toxic chemical pollution intensity, include residues of pesticides,
and a very large group of organic chemicals, which include benzene, toluene, xylene,
chloroethane, and chloromethane, etc. (Hettige et al., 1994)
2.3.1 Ranking pollutant industries according to total chemical toxic pollutants
Petroleum refiners contribute with 33.49% of total chemical toxic pollutants;
manufacturing of basic chemicals except fertilisers with 22%, and the Egyptian iron and
steel industries with 10.7% (Figure 6). While the manufacturing of vegetable and animal
oil, and manufacture of synthetics plastics have little contribution to total toxic chemical
pollution.
Figure 6 Ranking pollutant industries in percentage according to their participation total
chemical toxic pollutants (see online version for colours)
Source: Data calculated by the author (Appendix – Table 6)
Egypt has nine refineries that were able to process 726,250 bbl/day of crude. Other
sources include manufacturing processes such as pulp and paper industry, textile and
leather dying, and thermal processing in the metallurgical, cement, motor vehicles
industry, and steel production processes. Petroleum hydrocarbons were potentially the
most likely source of PAHs (Barakat et al., 2001; Barakat, 2002). Oil pollutants are toxic
and may also smother aquatic organisms and cause the death of birds, attracted by the
appearance of calm water, and by destroying the waterproofing properties of their
plumage.
Industrial development and the trade-off to environment 95
2.3.2 Ranking pollutant industries in percentage according to their
participation total chemical toxic pollutants in air, water and land
Toxic chemical pollution load in ton/yr was estimated in terms of toxic pollutants
released into different media (air, water, and land) whose intensities were available as
shown in the following figure.
Figure 7 Ranking pollutant industries in percentage according to their participation total
chemical toxic pollutants in air, water and land (see online version for colours)
Source: Data calculated by the author (Appendix – Table 6)
Manufacturing of basic chemicals contributed with 48.25%, and spinning and weaving
with 16.54% and were the highest generators of toxic chemicals into water. Petroleum
refiners contributed with 25.91%; manufacture of basic chemicals with 18.14% and
non-ferrous metal basic industries with 10.5%, and were the highest air polluters.
Manufacture of vegetable and animal oil has little contribution to air pollution. Petroleum
refiners contributed with 37.61%, and manufacture of basic chemical with 21.6%, and
they were the highest land polluters. Spinning weaving and finishing textile has the
lowest contribution to land pollution.
2.4 Toxic metal pollution
The metal compounds used for estimating toxic metal pollution intensity were:
aluminium (AL), vanadium (V), zinc (Zn) (fume or dust), antimony (Sb), barium (Ba),
bromine (Be), cadmium (Cd), chromium (Cr), cobalt (Co), copper (Cu), magnesium
(Mn), mercury (Hg), nickel (Ni), silver (Ag), and their compounds, thallium, thorium
dioxide and titanium tetrachloride (Hettige et al., 1994).
2.4.1 Ranking pollutant industries in percentage according to their
participation total toxic metal pollutant
Non-ferrous metal basic industries contribute with 41.11%, and iron and steel basic
industries with 40.92%, were the highest generator of total toxic metal. Manufacture of
96 D. Salman
technical electrical apparatus and supplies generate 0.91%, while synthetic resins sectors
have negligible contribution around 0.55% from the total toxic metal emission.
Theses heavy metals from industrial processes can accumulate in nearby lakes and
rivers. They are responsible for diseases to marine life such as fish and shellfish, and can
affect the rest of the food chain. This means that entire animal communities can be
negatively affected by this type of pollutant.
Figure 8 Ranking pollutant industries in percentage according to their participation total toxic
metal pollutant (see online version for colours)
Source: Data calculated by the author (Appendix – Table 7)
All of this waste dumped into the sea could have an adverse effect on both marine
organisms, and water quality. Some trace metals are essential for aquatic organisms (Fe,
Mn, Cu, and Zn), but they are in toxic form when natural levels are exceeded to higher
abnormal concentrations; other metals such as Pb and Cd are not essential and have a
toxic effect (Bryan, 1976).
2.4.2 Ranking pollutant industries in percentage according to their
participation total toxic metal pollutant in air, water and land
Iron and steel generate 43.79% from the total toxic metal pollutants in water,
manufacture of basic chemicals account for 22.79% and petroleum refiners 22.68%,
illustrating the highest ranking. Moreover, non-ferrous metal basic sectors generate
41.68%, and iron and steel 40.64%, and are the highest toxic metal polluters attributed to
land pollution. However, manufactures of synthetic resins and electrical apparatus, have
minimal contribution to land total toxic metal pollutants. Non-ferrous metal basic sectors
generate 41.11%, and Iron and steel 40.92%, are the highest land polluters. Manufacture
of synthetic resins and electrical apparatus has made little contribution to land pollution
as shown in Figure 9.
From the previous estimation it has been determined that the major generator for
environmental pollution, are the iron and steel industries, the cement industry and the
petroleum refiners sector. Moreover, they were the main economic pillars, and attraction
to employment. Iron and steel industries contribute to ca. 6.5% of the GDP, the cement
Industrial development and the trade-off to environment 97
industry 3%, and the petroleum refiners sector 17% (UNIDO, 2009). This illustrates that
an increase in allocation of resources toward pollution control, especially in these
industries, is required.
Figure 9 Ranking pollutant industries in percentage according to their participation total toxic
metal pollutant in air, water and land (see online version for colours)
Source: Data calculated by the author (Appendix – Table 7)
3 Pollution of River Nile and water poverty
Degradation of water quality presents a huge challenge that varies among different water
bodies depending on: flow, use pattern, population density, industrial pollution,
availability of sanitation systems, and social and economic conditions existing in the area
of the water source. Discharge of untreated or partially treated industrial and domestic
wastewater, the leaching of pesticides and residues of fertilisers; and navigation are often
factors that affect the quality of water.
It is worth mentioning that agriculture has always been the core of the economic
development of Egypt, and is considered to be the main activity for a large sector of the
population. It contributes to over one fifth of the gross domestic income and consumes
more than 85% of the available water resources. Municipal and industrial uses account
for 15% of the total water consumption in the country, while river navigation and
hydropower generation are considered as non-consumptive uses. Moreover, the majority
of the population is concentrated in 4% of the total land area of Egypt; with the
increasing pattern of population growth, which is expected to reach 95 million by 2025.
A case, that creates a challenge for policy makers, because 98% of this population
receives fresh water from the Nile River (Abu-Zeid, 2003).
All these challenges are in light of Law 48 of 1982, which specifically deals with
discharges to water bodies. This law prohibits discharge to the river Nile, irrigation
canals, drains, lakes and groundwater without a license issued by the Ministry of Water
Resources and Irrigation (MWRI). Licenses can be issued as long as the effluents meet
the standards of the laws. The license includes both the quantity and quality that is
98 D. Salman
permitted to be discharged. In Egypt, there are 25 agencies, and seven ministries are
involved in water quality monitoring programmes. These supervising bodies lack intra-
and inter-ministerial cooperation and data sharing. However, most of these monitoring
activities are not conducted on a regular basis.
The Nile River is unfortunately polluted by industrial and agricultural waste and
chemicals that find their way into the above and underground water sources. This major
challenge facing Egypt is estimated to exaggerate, if we do not close the gap between the
limited available water resources, and the increasing demand for water. This challenge is
aggravated by the fact that the available water per capita, per annum amounts to around
900 m3, which is already below the ‘water poverty’ index of 1,000 m3/capita/annum. This
figure is expected to fall to 670 m3 by 2017, unless policies are implemented to recognise
water as human rights.
4 Potential impacts of water quality on the environment, health and the
economy
4.1 Impacts of pollution on the environment
Although the water quality in the Nile is reasonable at present, locally water quality
issues occur, caused by effluents from some larger urban areas and industries. Many
drains are highly polluted and this poses a direct health threat, especially in – and around
villages and towns in densely populated rural areas. If no additional measures are taken,
the situation in the rural areas will deteriorate seriously in the future. Water quality will
decline as a result of increasing pollution loads. This affects the user functions of the
water system as well the health and the environmental conditions.
Moreover, the quality of ground water in the Nile system is generally still fairly good.
However, in some shallow ground water bodies, pollution has reduced its suitability for
raw drinking water. Especially in the fringes of the Nile valley and delta, where there is
no protective clay cap, the ground water is highly vulnerable to pollution. If no measure
is taken the ground water pollution will increase in the future. This poses a direct threat to
public health since ground water is consumed without treatment.
Industrial waste consists of many toxic compounds that damage the health of aquatic
animals and those who eat them. Some toxins affect the reproductive success of marine
life, and can therefore disrupt the community structure of an aquatic environment.
Suspended particles can often reduce the amount of sunlight penetrating the water,
disrupting the growth of photosynthetic plants and micro-organisms. This consequently
affects the rest of the aquatic community that depend on these organisms to survive
4.2 Impacts of pollution on health
Awareness has been growing about the dangers posed to human health and the
environment by pollutants. Many of the substances of greatest concern are organic
compounds characterised by persistence in the environment, resistance to degradation,
and acute and chronic toxicity. In addition, many are subject to atmospheric, aquatic or
biological transport over long distances, and are thus globally distributed, detectable even
in areas where they have never been used. Chemical pollution of surface water can create
health risks, because such waterways are often used directly as drinking water sources or
Industrial development and the trade-off to environment 99
connected with shallow wells used for drinking water. The character of these substances
cause them to be incorporated and accumulated in the tissues of living organisms leading
to body burdens that pose potential risks of adverse health effects resulting in the
following scenarios:
• spread of common vector, borne diseases such as malaria and dengue; as well as
other major killers such as malnutrition and diarrhea
• health effects resulting from water shortage, high temperature, humidity and the
increasing intensity of heat and cold waves
• an increase in mortality rates among children, and the elderly due to high
temperatures.
Moreover, waterways play an important role for washing and cleaning, for fishing and
fish farming, and for recreation. However, toxic chemicals such as arsenic and fluoride
can be dissolved from the soil or rock layers into groundwater. Direct contamination can
also occur from badly designed hazardous waste sites or from industrial sites.
This dilemma requires collaboration between the government, business and the
individual to adopt regulatory measures to reduce the pollution levels from different
sectors.
5 Protecting public health and environment
To determine which measures might improve the situation most effectively, the causes
must be clearly addressed. However, these causes are institutional, pollution loads, or
financial causes. Than packages of measures need to be selected that address the
objectives, and they include:
5.1 Prevention measures to polluted industries
The emphasis is on the industrial and agricultural sectors to produce more and more
environmental friendly products. However, it is not always attractive to industries to
change to these new technologies, an issue that requires providing incentives to industries
while encouraging the public to buy clean products. This can be done through generating
funds for these actions, and by enhancing the supporting institution, through the
following:
• Introducing financial incentives to promote clean industry products, by using taxes,
tax exemptions, and subsidies for investment related to cleaner industrial processes
and water recycling technologies.
• Compliance action plans or agreements for polluted industries to establish schedules
for feasible improvements to water quality problems. Also, agreements can require
periodic reporting of progress and sanitation on bad performance.
• Increasing public awareness campaigns to promote for the consumption of clean
product in terms of water quality, an issue that requires people to be aware of the
environmental impacts of the polluted products.
100 D. Salman
• Phase-out industries along vital inland waters and residential areas toward new
industrial cities to decrease the pressure along the Nile valley.
• Introduce load-based discharge levies based on the polluter pays principle, these
negative incentives related to the load of pollutants.
• Strengthening institutions control to enhance using resources efficiently
5.2 Treatment measures to industrial wastewater
Despite the implementation of the prevention measures, a large amount of waste water
will still be produced by industries. A combination of measures is proposed to treat this
load as follows.
• Treatment or pre-treatment of industrial waste water by industries themselves. This
will ensure that the most appropriate technology for the particular type of waste is
used, and all options for reuse are utilised.
• Separate collection of wastes and/or pre treatment of industrial waste water where it
enables in many cases collection viable to recycle (e.g., engine oil).
• Introduce load-based discharge levies, as it acts as an incentive to encourage self
treatment and a form of income to recover the cost of treatment if the government
provides it.
5.3 Institutional measures on water quality
To support implementing strategy for water quality some general institutional measures
must be adopted.
• Changing the role of the MWRI from operational to a controllable one.
• Coordinate investments on the regional and central to reuse, and efficient treatment
for waste water. Mostly this will be at a regional or government level.
6 Conclusions
Industrial development projects that control the pollution of natural resources,
particularly water supplies, will have a very large net positive economic impact, and it
should be given a high priority. Moreover, more emphasis should be placed on the
cost/benefit aspects of low-waste technologies and sensible legislation for environmental
controlling should depend on the knowledge of the existing situation, and careful
assessment of its impact on the development.
The industrial development problem in Egypt requires focusing on causes of different
pollution and setting effective measures. The effectiveness of interventional measures
would significantly reduce the overall pollution load, improving citizens’ quality of life,
and enhancing water poverty alleviation. This will never happen if industries or business
activities keep producing polluted products, and consumers continue to demand it.
Industrial development and the trade-off to environment 101
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102 D. Salman
Appendix
Table 1 Average annual real growth rates and structure of MVA at the two-digit level of
ISIC – year 2000–2007
ISIC description ISIC 2000 2007
Food and beverages 15 16.5385 7.8989
Tobacco products 16 0.0028 0.0019
Textiles 17 12.1201 6.5004
Wearing apparel, fur 18 4.148 5.3706
Leather, leather products and footwear 19 0.3674 0.0694
Wood products (excl. furniture) 20 0.3581 0.1368
Paper and paper products 21 1.384 1.6561
Printing and publishing 22 3.2585 6.298
Coke, refined petroleum products, nuclear fuel 23 4.182 12.9254
Chemicals and chemical products 24 21.2461 24.9651
Rubber and plastics products 25 2.3449 1.435
Non-metallic mineral products 26 10.5082 15.5736
Basic metals 27 6.8595 5.9411
Fabricated metal products 28 2.5023 2.4488
Machinery and equipment n.e.c. 29 4.8545 3.1151
Electrical machinery and apparatus 31 3.2675 3.106
Medical, precision and optical instruments 33 0.2273 0.1829
Motor vehicles, trailers, semi-trailers 34 4.9106 1.7876
Furniture, manufacturing n.e.c. 36 0.9197 0.5871
Source: UNIDO (2009)
Table 2 Relative importance of industry according to the employment during year 2002
Food, beverages, tobacco 21.89
Textile, Fabrics, leather 29.8
Manufacture of products of wood 0.5
Paper, publishing 4.05
Manufacture of refined petroleum products 3.18
Manufacture of basic chemicals, rubber product 10.5
Manufacture of non-metallic mineral products n.e.c. 8.08
Manufacture of structural metal products, tanks, reservoirs 6.08
Manufacture of general purpose machinery 3.33
Manufacture of office, accounting and computing machinery 3.79
Other manufacturing 8.76
Source: UNIDO (2009)
Industrial development and the trade-off to environment 103
Table 3 Pollution load for each industry (pound/employee)
Metal pollution load Poison chemical pollution load Water pollution load
ISIC 2Digit
Met land Met wat Met air
Toxic land Toxic wat Toxic air
TSS BOD
31 121,700.8722 7,392.178 1,641.125 7,169,309.3 525,836.8 3,085,590 18,680,904.3 57,488,650
32 978,870.9816 1,780.455 24,131.28 8,175,563 1,215,517 8,458,695 1,757,830.53 97,8324.4
33 24,522.03429 36.67149 2,231.355 129,556.1 1,366.043 1,004,585 359,880.62 76,412.49
34 26,489.36136 7,541.406 5,775.668 1,965,584.7 1,129,437 5,570,077 43,563,856.6 12,953,152
35 7,542,640.791 210,798.9 247,917.3 17,762,5514 20,019,503 81,665,369 94,474,702.1 28,650,651
36 619,108.583 1,045.385 89,545.04 4,612,772.1 80,342.03 3,350,625 22,830,625 150,583.9
37 50,179,423.98 164,176 1,839,602 65,699,089 2,499,016 18,205,989 18,205,989 12,516,034
38 1,742,541.953 7,653.491 73,720.38 6,698,459.2 178,280.4 9,147,240 9,147,240 117,822.5
39 13,899.96761 71.6815 1,183.812 47,154.735 1,394.634 107,460.7 107,460.7 12.39804
104 D. Salman
Table 3 Pollution load for each industry (pound/employee) (continued)
Air pollution load
ISIC 2Digit
PM
10
VOC NO
2
SO
2
CO PT
31 19,706,725 19,254,140 50,415,815 55,357,448 12,419,354 41,835,672
32 428,816.1 10,839,895 20,111,977 16,287,067 2,872,508.9 3,726,315
33 273,517.6 5,201,277.6 2,004,071.9 1,117,569.4 4,881,907.6 3,073,845
34 1,353,554 6,622,350.2 13,351,423 24,158,351 27,646,981 4,733,249
35 8,162,635 153,236,126 176,875,327 233,833,707 251,947,264 36,845,281
36 9,702,909 562,625,208 81,069,387 126,662,612 16,202,995 91,687,407
37 29,861,646 19,643,518 49,873,566 264,900,448 235,440,363 37,410,230
38 172,249.8 13,023,913 3,965,552.2 5,766,029.1 6,778,550.2 1,402,014
39 3,381.169 108,600.22 11,550.362 16,264.34 3,775.6504 9,338.591
Industrial development and the trade-off to environment 105
Table 4 Ranking industries according to air pollution
ISIC
4Digit Industry No. employee
(thousand) TSF FP VOC CO NO SO
Total air
pollution load
Industry % in
pollution load
3530 Petroleum refineries 26 46,012,746 5,266,638 276,130,218 270,941,658 300,015,066 522,000,000 1,420,366,352 35.13%
3692 Manufacture of
cement, lime and
plaster
15.2 1.93 E + 08 332,171,558 1,055,974.4 22,576,909.6 185,484,870.4 399,000,000 1,133,495,662 28.03%
3710 Iron and steel basic
industries
38.2 25,189,233 30,047,699.8 14,553,015.8 169,419,674 47,224,100.6 109,000,000 395,433,761.2 9.78%
3115 Manufacture of
vegetable and
animal oils and fats
18.2 95,802,307 58,795,518.6 25,622,615.2 7,474,558 33,476,770.6 93,524,686 314,696,473.2 7.78%
3720 Non-ferrous metal
basic industries
17.5 11,023,915 1,205,995 4,775,207.5 61,059,092.5 4,275,372.5 131,000,000 213,339,600 5.28%
3691 Manufacture of
structural clay
products
28.5 55,477,188 11,305,152 5,742,351 16,788,324 70,673,217 7,314,297 167,300,557.5 4.14%
3211 Spinning, weaving
and finishing textiles
181.1 7,353,347 1,100,001.4 15,554,860.1 7,609,822 56,702,410 41,095,031 129,415,652.2 3.20%
3511 Manufacture of basic
industrial chemicals
except fertilisers
9.4 5,541,685 1,169,190.8 20,015,861.8 19,784,095.4 25,615,545.2 34,485,752 106,612,140 2.64%
3118 Sugar factories
and refineries
14.7 17,695,904 559,055.7 4,546,077.9 13,741,942.2 25,647,413.4 26,715,927 88,906,335 2.20%
3411 Manufacture of pulp,
paper and paperboard
3.9 4,708,958 1,360,417.5 3,786,069.3 27,349,116.6 12,501,816.6 23,960,855 73,667,236.4 1.82%
106 D. Salman
Table 5 Ranking industries according to water pollution
ISIC
4Digit Industry
No.
employee
(thousand)
TSS pollution
load (pound/
employee)
TSS pollution
load (pound/
employee)
Industry %
in pollution
load TSS
Bod
lower-bound
coefficient
Pollution
load (pound/
employee)
Industry %
in pollution
load BOD
Total water
pollution load
Industry
contribution %
in total water
pollution load
3710 Iron and steel
basic industries
38.2 96,012,746 1,150,971,048 73.94% 2,105.4 80,426.28 0.11% 1,184,977,790 70.86%
3720 Non-ferrous metal
basic industries
17.5 8,312,905 143,871,381 9.24% 575,085 10,063,993 13.91% 155,539,832 9.30%
3522 Manufacture of
drugs and
medicines
30.2 3,555,879 95,914,254 6.16% 14,183.2 4,283,332.6 5.92% 107,815,884.5 6.45%
3411 Manufacture of
pulp, paper and
paperboard
3.9 305,071.1 43,739,734 2.81% 3,302,138 12,878,337 17.79% 56,618,070.21 3.39%
3512 Manufacture of
fertilisers and
pesticides
15.7 3,054,594 47,957,127 3.08% 15,697.9 246,457 0.34% 48,203,584.4 2.88%
3530 Petroleum
refineries
26 1,258,256 32,714,651 2.10% 250,712 6,518,522 9.01% 39,233,173.2 2.35%
3511 Manufacture of
basic industrial
chemicals except
fertilisers
9.4 1,940,529 18,240,974 1.17% 1,255,449 11,801,219 16.31% 30,042,192.26 1.80%
3118 Sugar factories
and refineries
14.7 863,752 12,697,147 0.82% 602,435 8,855,793 12.24% 21,552,940.08 1.29%
3112 Manufacture of
dairy products
6.9 368,217 2,540,698 0.16% 2,556,411 17,639,236 24.37% 20,179,933.9 1.21%
3692 Manufacture of
cement, lime
and plaster
15.2 528,466 8,032,680 0.52% 241 3663.2 0.01% 8,036,343.6 0.48%
Industrial development and the trade-off to environment 107
Table 6 Ranking pollutant industries according to chemical toxic pollutants
Water Land Air
ISIC
4Digit Industry
No.
employee
(thousand)
Water pollution
load (pound/
employee)
Water industry
contribution in
pollution load
Pollution
load (pound/
employee)
Land industry
contribution in
pollution load
Pollution
load (pound/
employee)
Air industry
contribution in
pollution load
Total toxic
chemical
pollution load
(pound/employee)
Industry
contribution
% in total
toxic chemical
pollution load
3530 Petroleum refineries 26 1,887,756 10.29% 106,008,370 37.61% 25,033,710 25.91% 132,929,836 33.49%
3511 Manufacture of
basic chemicals
except fertilisers
9.4 8,854,518 48.25% 60,877,426.8 21.60% 17,526,196.6 18.14% 87,258,141.4 21.99%
3710 Iron and steel basic
industries
38.2 2,130,605 11.61% 34,360,861.8 12.19% 5,994,382.2 6.20% 42,485,849 10.70%
3720 Non-ferrous metal
basic industries
17.5 394,222.5 2.15% 26,903,747.5 9.54% 10,149,772.5 10.50% 37,447,742.5 9.44%
3512 Manufacture of
fertilisers and
pesticides
15.7 609,003 3.32% 175,955,86.6 6.24% 12,981,890.4 13.43% 31,186,480 7.86%
3522 Manufacture of drugs
and medicines
30.2 393,234.2 2.14% 15,232,940.4 5.40% 10,177,188.6 10.53% 25,803,363.2 6.50%
3211 Spinning, weaving
and finishing textiles
181.1 3,034,693 16.54% 5,535,140.4 1.96% 5,955,111.3 6.16% 14,525,125.5 3.66%
3513 Manufacture of
synthetic, plastic and
man-made fibres
4.8 527,035.2 2.87% 5,975,688 2.12% 7,208,246.4 7.46% 13,710,969.6 3.45%
3115 Manufacture of
vegetable and
animal oils and fats
18.2 520,720.3 2.84% 940,6943 3.34% 1,610,044.8 1.67% 11,537,708 2.91%
108 D. Salman
Table 7 Ranking pollutant industries according to toxic metal pollutant
Water Land Air
ISIC
4Digit Industry
No.
employee
(thousand)
Pollution
load (pound/
employee)
Industry
contribution in
water metal
pollution load
Pollution
load (pound/
employee)
Industry
contribution
in metal
pollution load
Pollution
load (pound/
employee)
Industry
contribution
in metal
pollution load
Total toxic
chemical
pollution load
(pound/employee)
Industry
contribution
% in total
toxic chemical
pollution load
3720 Non-ferrous metal
basic industries
17.5 13,979.35 3.94% 23,265,203.7 41.68% 702,234.225 32.45% 23,981,417.43 41.11%
3710 Iron and steel basic
industries
38.2 155,578.3 43.79% 22,687,383.4 40.64% 1,028,993.4 47.55% 23,871,954.7 40.92%
3511 Manufacture of basic
industrial chemicals
except fertilisers
9.4 80,567.87 22.68% 2,750,185.45 4.93% 86,741.7 4.01% 2,917,495.014 5.00%
3530 Petroleum refineries 26 80,865.98 22.76% 1,884,458.94 3.38% 203,840.52 9.42% 2,169,165.44 3.72%
3512 Manufacture of
fertilisers and
pesticides
15.7 3,747.12 1.05% 1,518,620.18 2.72% 21,744.34 1.00% 1,544,111.64 2.65%
3819 Manufacture of
fabricated metal
products except
machinery and
equipment
20.3 7,878.84 2.22% 1,029,925.58 1.85% 22,920.12 1.06% 1,060,724.53 1.82%
3211 Spinning, weaving
and finishing textiles
181.1 3,308.7 0.93% 992,973.11 1.78% 49,069.05 2.27% 1,045,350.85 1.79%
3691 Manufacture of
structural clay
products
28.5 2,329.02 0.66% 863,642.34 1.55% 32,752.49 1.51% 898,724.13 1.54%
3839 Manufacture of
electrical apparatus
and supplies
1 486.1 0.14% 515,111.3 0.92% 13,585.3 0.63% 529,182.7 0.91%
3513 Manufacture of
synthetic resins,
plastic materials
4.8 6,511.58 1.83% 311,346.7 0.56% 1,999.58 0.09% 319,857.84 0.55%
