The Nexus between Infrastructure and Environment
This paper describes how infrastructure plays a crucial role in the drive for achieving development by providing energy, transportation, and water. There have been ups and downs in the degree of emphasis placed on infrastructure, but infrastructure has remained the largest component of the public investment programs in developing countries—two to six percent of gross domestic product (GDP). Nearly half of the international financial institutions’ project lending to developing countries goes to infrastructure. Going forward, the Organization for Economic Co-operation and Development (OECD) estimates that developing countries might have to invest over $700 billion a year in infrastructure in the coming decade. In order to sustain rapid growth rates, this investment may rise to $1 trillion a year by 2030. Well-designed infrastructure can have positive impacts on the environment, which also is crucial for development. However, there is a dark side to infrastructural investments: they often lead to environmental degradation. Fossil fuel energy generation and transportation create emissions that contribute to acid rain locally and global warming. Hydropower and irrigation can lead to flooding, water pollution, and disruption of communities. Roads can lead to erosion, deforestation, and biodiversity loss. These environmental costs have been estimated to reach four to eight percent of GDP for some developing countries, with most of the effects falling on the poor. The Evaluation Coordination Group (ECG) recognizes the importance of this linkage, which the authors call the infrastructure-environment nexus. It represents a large and growing challenge for the countries and the international financial institutions (IFIs) in their development goals. Meeting the Millennium Development Goals depends on the provision of adequate infrastructure, such as providing clean water and sanitation, as well as on reducing adverse environmental impacts, such as reducing the impacts of air pollution on health and agricultural production (e.g., acid rain). The ECG commissioned this initial review of members’ experiences to learn what can be done both to minimize the detrimental impacts of infrastructure on the environment and to enhance infrastructure’s positive contribution to the environment beyond the role of existing safeguards.
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Corporate Authors:
World Bank
Independent Evaluation Group, 1818 H Street, NW
Washington, DC United States 20433 - Publication Date: 2007-6
Language
- English
Media Info
- Media Type: Print
- Features: References; Tables;
- Pagination: 35p
Subject/Index Terms
- TRT Terms: Acid rain; Air pollution; Developing countries; Energy; Environmental impacts; Financial analysis; Fossil fuels; Gross domestic product; Infrastructure; Public transit; Sustainable development; Transportation planning
- Subject Areas: Energy; Environment; Finance; Highways; Planning and Forecasting; Public Transportation; I15: Environment; I72: Traffic and Transport Planning;
Filing Info
- Accession Number: 01111484
- Record Type: Publication
- Report/Paper Numbers: EGC Paper 1
- Files: TRIS
- Created Date: Sep 29 2008 11:47AM