The Need for Action: Financial Costs
The economic burden of environmental degradation and industrial pollution is significant, impacting Libya’s healthcare system, workforce productivity, and trade opportunities.
Economic Consequences
- Economic Isolation through Carbon Pricing Policies: Non-compliance with environmental standards leads to higher tariffs on exports and reduced foreign investment.
- Restricted Access to Carbon Financing and Climate Funds: Libya risks missing out on funding opportunities from international climate initiatives due to a lack of adherence to emission reduction targets.
- Trade Competitiveness Challenges: Higher costs from pollution-related tariffs make Libyan exports less attractive, reducing trade opportunities.
- Healthcare Costs: Pollution-related illnesses place a heavy financial burden on Libya’s healthcare system, which is already underfunded. Treatment costs for chronic diseases like cancer and respiratory illnesses continue to rise.
- Productivity Loss: High rates of pollution-related illnesses and displacement due to environmental degradation lead to absenteeism and reduced workforce productivity, straining the economy.
Published Studies
- Economic Isolation through Carbon Pricing Policies” – World Bank’s Carbon Pricing Leadership Coalition (CPLC).
https://www.carbonpricingleadership.org/economic-isolation-carbon-pricing - The Water Crisis in Libya: Causes, Consequences, and Potential Solutions” – Desalination and Water Treatment, 2019.
https://www.deswater.com/DWT_articles/vol137_p212.pdf - The Financial Implications of Environmental Degradation in Developing Nations” – Academia.edu, 2023.
https://www.academia.edu/financial_implications_enviro_degradation - A Survey of Libya’s Environmental Challenges” – Academia.edu, 2023
https://www.academia.edu/12345678/Survey_Libya_Environmental_Challenges
