Quantification of External Effects in Bauxite Mining and Alumina Production

摘要

Industrial activities have both positive and negative external impacts. These impacts need to be quantified within the framework of any holistic process analysis. This paper deals with both bauxite mining activities and alumina production in Jamaica, which is one of the most important producers of these commodities. The bauxite, which is covered by thin overburden, is extracted in open pit mines and refined to alumina or exported. External impacts caused by such activities can be, for example, income effects, land use or dust emissions. A standardised monetarisation of impacts is possible using two methods: the willingness-to-pay method and the cost-avoidance approach. Not only the monetarisation of external effects can be tested in Jamaica but also five concepts of their internalisation have been identified. The recent discussion on internalisation of external costs can be stimulated by these five concepts.