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Impacts and Sources of Exposure to Lead Rationale of Removing Lead from Gasoline
Lead is a highly toxic heavy metal that ad- Since the 1930s, alkyl-lead compounds have been
versely affects the nervous, blood-forming, car- widely used to improve auto engine performance
diovascular, renal, and reproductive systems. by increasing the resistance of the internal com-
Of most concern are its effects on the nervous bustion engine to early ignition (measured by the
system of young children—reduced intelligence, octane rating of gasoline). The use of lead addi-
attention deficit, and behavioral abnormali- tives allowed car manufacturers to produce
ties—and its contribution to cardiovascular larger and more powerful engines, leading to
disease in adults. Such impacts occur even at rapid growth in the use and emission of lead from
low levels of exposure; there is no known lower vehicular sources. Two major factors have
threshold. brought about a decline in the use of lead in gaso-
Human exposure to lead can be attributed to line since the 1970s:
four types of sources: vehicular, when lead addi-
• The introduction of catalytic converters, de-
tives are used in gasoline; industrial emissions,
signed to reduce tailpipe emissions of various
largely from the mining, smelting, and process-
pollutants, which required the introduction of
ing of lead and lead-containing metal ores; waste
unleaded gasoline to protect the converters.
disposal and processing of lead-containing sub-
• The recognition that health impacts occur even
stances through such means as incineration; and
at low exposure levels, which induced mea-
use of lead-containing products such as water
sures to reduce the lead content of gasoline to
pipes and solder, food-can solder, ceramic glazes,
minimize health impacts.
paint pigment, and batteries. Many of the uses
of lead (for example, in paint) have been banned Because the social benefits of phasing out lead
by most countries. As a result, vehicular traffic largely outweigh the costs, policies should facili-
is often the largest source of human exposure, tate the reduction of lead from gasoline in addi-
accounting for as much as 90% of all atmo- tion to and beyond the demands of changing car
spheric lead emissions in many urban areas. A technology.
close connection has been discovered between
the use of lead in gasoline and human health Worldwide Experience with Phasing Out
impacts (USEPA 1985). In addition to the im- Lead from Gasoline
mediate health exposures through inhalation,
lead also accumulates in the soil, causing long- Phase-out of lead is in different stages around
term exposure. the world. Argentina, Austria, Bermuda, Brazil,
91
92 IMPLEMENTING POLICIES: AIR QUALITY MANAGEMENT
ibility in the timing of compliance with chang- vice, typical emissions factors of the car model,
ing fuel specifications. and age of the vehicle.
Gasoline prices should enable domestic refiner- Governments can accelerate the adjustment of
ies to adjust. Liberalized price and market poli- markets to the wider use of unleaded gasoline
cies allow refineries to generate sufficient by encouraging promotion of unleaded gasoline
resources and returns to finance such adjustment. and by supporting the training of technicians and
Controlled gasoline prices, however, can facili- car mechanics in the proper maintenance and
tate such adjustment only if prices are set at adjustment of the various types of vehicles to
least at the level of prevailing international enable use of unleaded gasoline.
market prices. Gasoline price subsidies should
be eliminated to encourage rapid supply-side World Bank Experience
adjustment.
Policies
Tax Policies
World Bank studies have pointed out the danger
A tax rate that is higher for leaded than for un- of lead exposure in, for example, Indonesia,
leaded gasoline is justified to reflect the social Mexico, Thailand, the Middle East, and Central
costs of negative health impacts caused by lead. and Eastern Europe. Evidence of the adverse
Experience has shown that differentiated taxa- health impacts of lead has led to government ac-
tion which results in a 5–10% difference in favor tion to address the problem and, with the as-
of unleaded gasoline prices facilitates the rapid sistance of the Bank, to design and implement
adjustment of consumer habits and demand. If lead phase-out programs and supporting poli-
revenue neutrality is an objective, the difference cies in a number of countries, including Bul-
in tax rates will need to be adjusted over time as garia, Mexico, the Philippines, and Thailand.
the market share of unleaded gasoline increases Experience in Thailand has shown that rapid
during the phase-out period. lead phase-out is possible if the government
sets clear deadlines, gasoline prices are liber-
Environmental Policies alized, and refineries respond to market
changes and regulations. The lead phase-out
Air pollution causes serious health damage, es- program was severely hampered in Mexico,
pecially in densely populated urban areas. Traf- where price policies and market liberalization
fic is generally a large and growing contributor efforts failed to support the adjustment of re-
to these pollution problems. In many cases, the fineries and of consumer behavior.
requirement to install catalytic converters is jus-
tified to reduce the damage. Such regulations fa- Implementation
cilitate the shift in gasoline demand toward
unleaded gasoline brands. The Bank has provided financial support for the
restructuring of the Bangchak refinery in Thai-
Import Policies land to enable the refinery to produce unleaded
gasoline. The Bank’s financing role has been
Import regulations and customs levied on im- largely catalytic, to attract the participation of
ported cars on the basis of their age and environ- commercial sources. As a result of government
mental performance affect gasoline demand. policies and rapid refinery adjustment, lead was
Import policies should reflect the social cost of completely phased out from gasoline by the end
pollution generated by imported cars, using such of 1995 in Thailand. A similar project, in prepa-
proxies as presence of an emissions control de- ration, will assist the main refinery in Bulgaria
Removal of Lead from Gasoline 95
to improve its technical capacity to increase the Lovei, Magda. 1996. Phasing Out Lead from Gasoline:
production of unleaded gasoline. World-Wide Experience and Policy Implications. Envi-
ronment Department Paper 40. Washington, D.C.:
References and Sources World Bank.
Hirshfeld, D., and J. Kolb. 1995. ”Phasing Out Lead USEPA (U.S. Environmental Protection Agency). 1985.
from Gasoline: Feasibility and Costs.” Implement- Costs and Benefits of Reducing Lead in Gasoline: Final
ing the Environmental Action Programme for Cen- Regulatory Impact Analysis. EPA-230-05-85-006.
tral and Eastern Europe. World Bank, Environment Washington D.C.: Office of Policy Analysis.
Department, Washington, D.C.