The estimated environmental cost of Sasol Fertilizer

Abstract

This study investigated the main environmental and social cost of Sasol Fertiliser. This cost was categorised as primary and secondary in nature and was described as part of a cost estimation model, including a number of procedures and methods that can be followed for general environmental cost estimation studies. A description of the receiving environment, as well as the fertiliser production process was presented. The main environmental and social cost for Sasol Fertiliser was identified and monetary values assigned to this cost where possible. This study recommended suitable existing cost estimating procedures or specialist studies for future research in South Africa, including "Willingness to Pay" and "Willingness to be Compensated" studies. The total environmental cost for Sasol Fertiliser was found to be in the order of a minimum of R50 million. This amount excluded most of the secondary cost identified, but included the remediation cost in terms of soil and groundwater contamination and loss of vegetation. It was found that the primary environmental cost of Sasol Fertiliser outweighed its known secondary environmental cost, based on the cost values obtained. Future studies are required to expand the current knowledge base of general environmental cost accounting in South Africa.