This work shows a proposal for reducing emissions, fuel costs, and respiratory disease hospitalizations using environmental cost accounting principles for the production of biodiesel production from waste frying oil (WFO). PM10, PM2.5, and O3 data from 2017 to 2022 were collected and correlated with the number of hospitalizations for respiratory diseases and their costs. WFO samples were collected locally from households and restaurants in the greater ABC region, Brazil, and biodiesel was produced using the samples. The results showed that throughout the studied period, one or more of the polluting gases showed a strong correlation with hospitalizations due to respiratory diseases, corroborating what has already been verified by other studies carried out by the WHO. WFO biodiesel was within the standard limits, and the total annual production was estimated to be 30,435 m3; moreover, the associated annual carbon credits would equal 67 tCO2, as well as a decrease of 30% in total pollutant emissions. Environmental cost accounting revealed that the annual number of respiratory disease hospitalizations could decrease by 3093 and the associated healthcare cost would decrease by USD 838 thousand per year; moreover, the sale of biodiesel and byproducts can generate an annual profit of USD 19 million. The biodiesel plant project had an NPV of USD 172.5 million, a payback of 1 month, and a return on investment of more than 170 times the initial financing. In addition, the reputation and the quality of life of the greater ABC region’s residents could improve.
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