Claims:I/We Claim,
1. A system (1) for valuing impacts (2) of water import to an area due to an enterprise, the 5 system (1) comprising:
- an input unit (3) adapted to receive a location information (4) related to the geographical area where the enterprise is located, the input unit (3) is further adapted to receive a water consumption data (5), and a financial data (6);
- a memory unit (7) adapted to store an externality cost of water data (8) for a plurality of 10 geographical area; and
- a first processing unit (9) adapted to receive and process the location information (4), and based on such processing fetches externality cost of water data (8) for the geographical area where the enterprise is located, the first processing unit (9) is further adapted to receive the water consumption data (5), and the financial data (6), to process the water consumption data (5), and 15 the financial data (6) along with the externality cost of water data (8), and to generate a value of impacts (2) due to water import in the geographical area due to the enterprise,
wherein the water consumption data (5) relates to amount of water being consumed by the particular enterprise,
wherein the financial data (6) relates to market performance of the enterprises, and 20
wherein the externality cost of water data (8) relates to a composite hidden cost of water consumption for a predefined volume of water for a geographical area where the enterprise is located, with respect to at least energy consumed due to provisioning of water in the
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geographical area, increase in malnutrition due to lack of water in the geographical area, increase in infectious disease due to unsafe water consumption in the geographical area, or combination thereof.
2. The system (1) according to the claim 1, wherein the first processing unit (9) is adapted to 5 process the water consumption data (5), and the externality cost of water data (8), and to determine an externality cost of water consumption (10) related to an unaccounted cost due to water consumption by an enterprise.
3. The system (1) according to any of the claims 1 or 2 comprising: 10
- a second processing unit (11) adapted to process at least a first externality cost (12) for particular geographical area, a second externality cost (13) for particular geographical area, a third externality cost (14) for particular geographical area, or combination thereof, to generate the externality cost of water data (8), and to send the externality cost of water data (8) to the memory unit (7), 15
wherein the first externality cost (12) relates to energy consumed due to provisioning of water consumed by the enterprise in the geographical area, the second externality cost (13) relates to externality cost of water consumption pertaining to malnutrition due to lack of water in the geographical area, and the third externality cost (14) relates to externality cost of water consumption pertaining to increase in infectious disease due to unsafe water consumption in the 20 geographical area.
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4. The system (1) according to claim 3, wherein the second processing unit (11) is adapted to receive and process a energy consumption data (15) and a macro geographical area externality cost (16), and to generate the first externality cost (12), wherein the energy consumption data (15) relates to energy consumed for provisioning water in particular geographical area, and the macro geographical area externality cost (16) relates to a externality cost of energy production 5 for a macro geographical to which the particular geographical area is a part.
5. The system (1) according to any of the claims 3 or 4, wherein the memory unit (7) is further adapted to store a GDP loss data (17), and the second processing unit (11) is adapted to receive and process a first disability data (18) and the GDP loss data (17), and to generate the second 10 externality cost (13), wherein the first disability data (18) relates to number of years lost due to disabilities related to malnutrition for lack of water in the particular geographical area, and the GDP loss data (17) relates to loss of Gross Domestic Output in a macro area to which the particular geographical area belongs to.
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6. The system (1) according to the claim 5, wherein the memory unit (7) is further adapted to store at least a water baseline stress data (19), an agricultural water usage data (20), and a human development index data (21), the system (1) comprising:
- a third processing unit (22) adapted to receive and process a malnutrition related data (23), and at least one of the water baseline stress data (19), the agricultural water usage data (20), the 20 human development index data (21), or combination thereof, and to generate the first disability data (18),
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wherein the water baseline stress data (19) relates to scarcity of water in the particular geographical area,
wherein the agricultural water usage data (20) relates to fraction of total water used for agricultural purpose in the particular area,
wherein the human development index (21) relates to a composite index of life expectancy, 5 education and per capita income for the particular geographical area,
wherein the malnutrition related data (23) relates to at least one of the years of life lost due to disabilities in the particular geographical area, human capital loss caused by malnutrition or combination thereof.
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7. The system (1) according to any of the claims 3 to 6, wherein the memory unit (7) is further adapted to store a second disability data (24), the second processing unit (11) is adapted to receive and process the second disability data (24) and the GDP loss data (17), and to generate the third externality cost (14), wherein the second disability data (24) relates to number of years lost due to disabilities related to infectious disease caused due to drinking of unsafe water in the 15 particular geographical area.
8. The system (1) according to any of the claims 1 to 7 comprising:
- a fourth processing unit (25) adapted to receive and process a sector information (26), and based on such processing, further adapted to receive the value of impacts (2) of a plurality of 20 enterprises belonging to that particular sector, and the financial data (6) of each of the enterprise, to generate a Benchmark value of impact (27) of the sector relates to general environmental performance of enterprises in particular sector,
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wherein the memory unit (7) comprises a benchmark value database (28), and adapted to receive the benchmark value of impact (27) from the fourth processing unit (25), and to store them.
9. The system (1) according to claim 8, wherein the first processing unit (9) is adapted to receive the benchmark value of impact (27) for a sector to which an enterprise belongs to, the first 5 processing unit (9) is adapted to be in communication to a display unit (29), the system (1) comprising:
- the display unit (29) adapted to receive and display the value of impacts (2) due to water import in the geographical area due to the enterprise, and the benchmark value of impact (27). , Description:FIELD OF INVENTION
The invention is related to a computer implemented method for valuing impacts of water import 5 in a geographical area. More specifically, the invention is related valuing impacts of water import in a geographical area, due to business activity of an enterprise in a target geographical area.
BACKGROUND OF THE INVENTION
Water is the most fundamental raw material or input required in different stages of the value chain 10 of a product or a service. Water consumption can be classified both as an impact as well as dependency on natural capital. Water consumption can be driven by multiple activities across the value chain of a company. Key areas of use can be as a primary input in the process (for example – food & beverage industry) or as non-process (example – cooling water in thermal power plants) and other uses (for example – cleaning, domestic consumption, and horticulture). 15
The economic value of water as a resource can vary significantly from place to place. Variability is largely determined by aspects like demand and supply, available infrastructure for water management and sectors of demand (domestic, industrial, agricultural, etc.). Some of the demand categories like domestic consumption would be preferred to industrial use. Natural water 20
availability also varies significantly within small spatial scales which are largely determined by
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surface water bodies, underground water and climatic conditions in the region.
Freshwater withdrawal from the local environment leads to the unavailability of water for different purposes. Unavailability of water increases the gap between water availability and demand, thus leading to water scarcity which can be used as an indicator for assessing the level of severity of 5 the problem. Increased water scarcity (primary ‘outcome’) can lead to multiple secondary ‘outcomes’ in our environment. Unavailability of water for human consumption, for agriculture, ecosystems and other activities such as recreational activities, hydroelectricity, etc. are some of the key outcomes. Finally, these outcomes have ‘impacts’ on society and the environment. Impacts include increased incidences of communicable diseases, loss of biodiversity and ecosystem 10 services, increased malnutrition, etc.
OBJECTIVE OF THE INVENTION
The object of the invention is to provide a mechanism for valuing impacts of water import in a 15 geographical area due to business activities of an enterprise in the geographical area.
SUMMARY OF THE INVENTION
The object of the invention is achieved by a system for valuing impacts of water import to an area 20 due to an enterprise according to claim 1.
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The system includes an input unit, a memory unit, and a first processing unit. The input unit receives a location information related to the geographical area where the enterprise is located, a water consumption data, and a financial data. The water consumption data relates to amount of water being consumed by the particular enterprise. The financial data relates to market performance of the enterprises. The memory unit stores an externality cost of water data for a 5 plurality of geographical area. The first processing unit receives and processes the location information, and based on such processing fetches externality cost of water data for the geographical area where the enterprise is located. The first processing unit further receives the water consumption data, and the financial data, processes the water consumption data, and the financial data along with an externality cost of water data, and generates a value of impacts due to 10 water import in the geographical area due to the enterprise. The externality cost of water data relates to a composite hidden cost of water consumption for a predefined volume of water for a geographical area where the enterprise is located, with respect to at least energy consumed due to provisioning of water in the geographical area, increase in malnutrition due to lack of water in the geographical area, increase in infectious disease due to unsafe water consumption in the 15 geographical area, or combination thereof.
According to one embodiment of the system, wherein the first processing unit processes the water consumption data, and the externality cost of water data, and determines an externality cost of water consumption related to an unaccounted cost due to water consumption by an enterprise. 20
According to another embodiment of the system, the system includes a second processing unit which processes at least a first externality cost for particular geographical area, a second externality
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cost for particular geographical area, a third externality cost for particular geographical area, or combination thereof, and generates the externality cost of water data, and to send the externality cost of water data to the memory device. The first externality cost relates to energy consumed due to provisioning of water consumed by the enterprise in the geographical area. The second externality cost relates to externality cost of water consumption pertaining to malnutrition due to 5 lack of water in the geographical area. The third externality cost relates to externality cost of water consumption pertaining to increase in infectious disease due to unsafe water consumption in the geographical area.
According to yet another embodiment of the system, wherein the second processing unit receives 10 and processes an energy consumption data and a macro geographical area externality cost, and generates the first externality cost. The energy consumption data relates to energy consumed for provisioning water in particular geographical area. The macro geographical area externality cost relates to a externality cost of energy production for a macro geographical area to which the particular geographical area is a part. 15
According to one embodiment of the system, wherein the memory device further stores a GDP loss data. The second processing unit receives and processes a first disability data and the GDP loss data, and generates the second externality cost. The first disability data relates to number of years lost due to disabilities related to malnutrition for lack of water in the particular geographical 20 area. The GDP loss data relates to loss of Gross Domestic Output in a macro area to which the particular geographical area belongs to.
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According to another embodiment of the system, wherein the memory device further stores at least a water baseline stress data, an agricultural water usage data, and a human development index data. The system includes a third processing unit which receives and processes a malnutrition related data, and at least one of the water baseline stress data, the agricultural water usage data, the human development index data, or combination thereof, and generates the first disability data. The water 5 baseline stress data relates to scarcity of water in the particular geographical area. The agricultural water usage data relates to fraction of total water used for agricultural purpose in the particular area. The human development index relates to a composite index of life expectancy, education and per capita income for the particular geographical area. The malnutrition related data relates to at least one of the years of life lost due to disabilities in the particular geographical area, human 10 capital loss caused by malnutrition, or combination thereof.
According to yet another embodiment of the system, wherein the memory device further stores a second disability data. The second processing unit receives and processes the second disability data and the GDP loss data, and generates the third externality cost. The second disability data 15 relates to number of years lost due to disabilities related to infectious disease caused due to drinking of unsafe water in the particular geographical area.
According to one embodiment of the system, the system includes a fourth processing unit which receives and processes a sector information, and based on such processing, further receives the 20 value of impacts of a plurality of enterprises belonging to that particular sector, and the financial data of each of the enterprise, and generates a Benchmark value of impact of the sector relates to general environmental performance of enterprises in particular sector. The memory unit includes
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a benchmark value database, and receives the benchmark value of impact from the fourth processing unit, and stores them.
According to another embodiment of the system, wherein the first processing unit receives the benchmark value for a sector to which an enterprise belongs to, and the first processing unit is to 5 be in communication to a display unit. The system includes the display unit which receives and display the value of impacts due to water import in the geographical area due to the enterprise, and the benchmark value for the sector.
BRIEF DESCRIPTION OF DRAWINGS 10
Fig. 1 illustrates a schematic representation of a system for valuing impacts due to water import in a geographical area.
DETAILED DESCRIPTION
For the purpose of promoting an understanding of the principles of the invention, reference will 15 now be made to the embodiment illustrated in the figures and specific language will be used to describe them. It will nevertheless be understood that no limitation of the scope of the invention is thereby intended. Such alterations and further modifications in the illustrated system, and such further applications of the principles of the invention as would normally occur to those skilled in the art are to be construed as being within the scope of the present invention. 20
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It will be understood by those skilled in the art that the foregoing general description and the following detailed description are exemplary and explanatory of the invention and are not intended to be restrictive thereof.
The terms "comprises", "comprising", or any other variations thereof, are intended to cover a non-5 exclusive inclusion, such that a process or method that comprises a list of steps does not include only those steps but may include other steps not expressly listed or inherent to such a process or method. Similarly, one or more sub-systems or elements or structures or components preceded by "comprises... a" does not, without more constraints, preclude the existence of other, sub-systems, elements, structures, components, additional sub-systems, additional elements, additional 10 structures or additional components. Appearances of the phrase "in an embodiment", "in another embodiment" and similar language throughout this specification may, but not necessarily do, all refer to the same embodiment.
Unless otherwise defined, all technical and scientific terms used herein have the same meaning as 15 commonly understood by those skilled in the art to which this invention belongs. The system, methods, and examples provided herein are only illustrative and not intended to be limiting.
Freshwater withdrawal from the local environment leads to the unavailability of water for different purposes. Unavailability of water increases the gap between water availability and demand, thus 20 leading to water scarcity which can be used as an indicator for assessing the level of severity of the problem. Increased water scarcity (primary ‘outcome’) can lead to multiple secondary ‘outcomes’ in our environment. Unavailability of water for human consumption, for agriculture,
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ecosystems and other activities such as recreational activities, hydroelectricity, etc. are some of the key outcomes. Finally, these outcomes have ‘impacts’ on society and the environment. Impacts include increased incidences of communicable diseases, loss of biodiversity and ecosystem services, increased malnutrition, etc. These impacts are required to be valued, so that extent of an impact of business activities of an enterprise can be carried out, vis-à-vis it’s market performance. 5
Fig. 1 shows a schematic representation of a system 1 which includes a memory unit 7, a input unit 3, a first processing unit 9, a second processing unit 11, a third processing unit 22, a fourth processing unit 25, and a display unit 29, which cooperates together to value impacts 2 of water import to an area due to an enterprise. 10
The input unit 3 receives a location information 4 from a user, and also further receives consumption data 5, and financial data 6. The water consumption data 5 relates to amount of water being consumed by the particular enterprise. And, the financial data 6 relates to market performance of the enterprises. 15
The memory unit 7 stores an externality cost of water data 8 for a plurality of geographical area. The externality cost of water data 8 relates to a composite hidden cost of water consumption for a predefined volume of water for a geographical area where the enterprise is located, with respect to at least energy consumed due to provisioning of water in the geographical area, increase in 20 malnutrition due to lack of water in the geographical area, increase in infectious disease due to unsafe water consumption in the geographical area, or combination thereof.
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The first processing unit 9 receives the location information 4 from the input unit 3, and further process it. Based on such processing, the first processing unit 9 fetches the externality cost of water data 8 for the geographical area where the enterprise is located from the memory unit, and further receive the water consumption data 5, and the financial data 6 from the input unit 3. The first processing unit 9 processes the water consumption data 5, and the financial data 6 along with the 5 externality cost of water data 8, and generates a value of impacts 2 due to water import in the geographical area due to the enterprise.
The first processing unit 9 also processes the water consumption data 5, and the externality cost of water data 8, and determines an externality cost of water consumption 10 related to an unaccounted 10 cost due to water consumption by an enterprise. In one embodiment, the first processing unit 9 is only adapted to value impacts 2 due to water import in the geographical area due to the enterprise, and not to determine externality cost of water consumption 10 separately.
The externality cost of water data 8 shall be pre-generated and kept in the memory unit 7 by the 15 second processing unit 11. The second processing unit 11 processes a first externality cost 12 for particular geographical area, a second externality cost 13 for particular geographical area, and a third externality cost 14 for particular geographical area, and generates the externality cost of water data 8. Once generated, the second processing unit 11 sends the externality cost of water data 8 to the memory unit 7. The first externality cost 12 relates to energy consumed due to provisioning of 20 water consumed by the enterprise in the geographical area. The second externality cost 13 relates to externality cost of water consumption pertaining to malnutrition due to lack of water in the geographical area.
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The third externality cost 14 relates to externality cost of water consumption pertaining to increase in infectious disease due to unsafe water consumption in the geographical area. Water scarcity may result in reduced availability of safe water and increase the incidences of infectious diseases and cause economic losses. The third externality cost 14 relates to hidden cost due to such damages 5 for infectious diseases because of water consumption. In one embodiment, damage factors for four diseases have been included in such estimation, namely Ascariasis, Trichuriasis, Hookworm disease, and Diarrhoea. The third externality cost 14 pertains to the loss of productive life years due to infectious diseases.
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In an alternate embodiment, the second processing unit 11 need not process all three the first externality cost 12, the second externality cost 13, and the third externality cost 14, rather, the second processing unit 11 may process any one or two of the first externality cost 12, the second externality cost 13, and the third externality cost 14 for generating the externality cost of water data 8. In another embodiment, the externality cost of water data 8 need not be pre-generated and 15 stored in the memory unit 7, rather it can be generated in real time, and fed into the first processing unit 9 by the second processing unit 11.
The second processing unit 11 also generates the first externality cost 12, the second externality cost 13, and the third externality cost 14. 20
The memory unit stores an energy consumption data 15 and a macro geographical area externality cost 16. The energy consumption data 15 relates to energy consumed for provisioning water in
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particular geographical area. And, the macro geographical area externality cost 16 relates to a externality cost of energy production for a macro geographical to which the particular geographical area is a part. The second processing unit 11 receives and processes the energy consumption data 15 and the macro geographical area externality cost 16, and generates the first externality cost 12. In cases, where the first externality cost 12 is pre-generated and stored in the memory unit or any 5 such memory device, the second processing unit 11 need not generate it in real time, rather it can fetch the first externality cost 12 and directly utilize it for generating the externality cost of water data 8.
Generation of electricity have high dependence on natural resources and may lead to significant 10 emissions to environment. For generating the first externality cost, in one embodiment, consideration is made for impacts from GHG emissions, air pollution and water & land pollution, caused by generation of electricity for each country. The valuation is based on the assumption that the electricity is sourced from the specific geographical area itself for which the estimation is carried out. For each of these environmental drivers, separate methodologies are used for 15 determining the first externality cost 14.
GHG Emissions
For valuation purpose, we use Social Cost of Carbon (SCC) which takes into account the damage costs due to global warming and its associated impacts. The SCC method has been preferred 20 because it accounts for the amount of investment required to reduce future damages caused by the present levels of GHG emissions. Social Cost of Carbon also accounts for the incremental concentration of GHG in the atmosphere (as the residence time of few GHGs in the atmosphere is
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quite long) and therefore provides a different value for every year. Further, SCC accounts for a global cost of damage which is important because impacts caused by GHG emissions such as climate change are not a local phenomenon but a global level issue. Thus, SCC allows the large-scale (global) externalities of GHG emissions to be incorporated into the decision making and policy development activities of countries across the globe. 5
Air Pollution
For estimating impacts due to PM, SOx, NOx released into the atmosphere, location specific coefficients for point source emissions are used. These coefficients take into account location specific meteorological parameters, source parameters and receptor parameters to calculate the 10 change in pollutant concentration in atmosphere with the help of dispersion model and a human health module. Human health module considers dose response function of each pollutant to calculate increased number of disease cases as well as reduced life expectancy cases. Disability Adjusted Life Year (DALY) loss for each of these health conditions is calculated. With the help Cost of Illness (COI) approach for morbidity cases and modified human capital approach for 15 reduced life expectancy cases, overall externality cost of the air pollutants is calculated. For toxic pollution, Usetox model can be used to calculate the impact on human health in terms of cancer and non-cancer cases and associated Years of life loss (YLL), Years of Life Loss due to Disability (YLD) and DALY’s loss. Externality cost associated with every unit quantity of pollutant release is established with the help of cost of illness approach for morbidity cases and modified human 20 capital approach for reduced life expectancy cases.
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Water & Land Pollution
For estimation of impacts coming from the toxic pollutants (pollutants that are usually found in trace quantities in the environment but can cause a number of cancers and non-cancer diseases), consideration is made for number of cases (cancer and non-cancer) and DALYs caused by these diseases for six environmental compartments, i.e., Indoor air, Urban air, Freshwater, Sea water, 5 Agricultural soil, and Natural soil. These factors are used for estimation of health costs, which represent externality cost of toxic pollutants. Human capital approach based on GDP loss per capita is also used, which values for the YLL (Year of Life Loss) in case of cancer and non-cancer cases.
For valuation of YLD fraction, Cost of Illness (COI) approach is used, which accounts for the 10 productivity loss and medical cost of the health condition due to cancer and non-cancer cases. For productivity loss calculation, GDP loss per capita per year is considered. Medical cost includes the treatment cost and any other costs associated with the hospital admission such as medicine cost, ambulance cost etc.
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All the values are converted to the current currency year using inflation rates from world bank and other standard sources.
Using the above-mentioned methodologies and quantities of pollutants extracted, the first externality cost 12 is estimated. 20
The memory unit 7 also stores a GDP loss data 17. The second processing unit 11 receive and processes a first disability data 18 and the GDP loss data 17, and generates the second externality
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cost 13. The first disability data 18 relates to number of years lost due to disabilities related to malnutrition for lack of water in the particular geographical area. The GDP loss data 17 relates to loss of Gross Domestic Output in a macro area to which the particular geographical area belongs to. In cases, where the second externality cost 13 is pre-generated and stored in the memory unit 7 or any such memory device, the second processing unit 11 need not generate it in real time, rather 5 it can fetch the second externality cost 13 and directly utilize it for generating the externality cost of water data 8.
The first disability data 18 is received from a third processing unit 22 which generates in real time to fed it to the second processing unit 11. In one embodiment, the first disability data 18 can be 10 pre-generated, and in such scenario the third processing unit 22 is not required.
To generate the first disability data 18, the third processing unit 22 receives and processes a malnutrition related data 23, the water baseline stress data 19, the agricultural water usage data 20, the human development index data 21. The malnutrition related data 23, the water baseline stress 15 data 19, the agricultural water usage data 20, and the human development index data 21 are stored in the memory unit 7. The water baseline stress data 19 relates to scarcity of water in the particular geographical area. The agricultural water usage data 20 relates to fraction of total water used for agricultural purpose in the particular area. The human development index 21 relates to a composite index of life expectancy, education and per capita income for the particular geographical area. The 20 malnutrition related data 23 relates to at least one of the years of life lost due to disabilities in the particular geographical area, human capital loss caused by malnutrition or combination thereof. In one embodiment, the third processing unit 22 processes only one or two of the water baseline stress
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data 19, the agricultural water usage data 20, the human development index data 21, along with the malnutrition related data 23 for generating the first disability data 18.
For generating the third externality cost 14, the second processing unit 11 receives and processes a second disability data 24 and the GDP loss data 17. The second disability data is stored in the 5 memory unit 7. The second disability data 24 relates to number of years lost due to disabilities related to infectious disease caused due to drinking of unsafe water in the particular geographical area. In cases, where the third externality cost 14 is pre-generated and stored in the memory unit 7 or any such memory device, the second processing unit 11 need not generate it in real time, rather it can fetch the third externality cost 14 and directly utilize it for generating the externality cost of 10 water data 8.
The fourth processing unit 25 receives and processes a sector information 26 from the memory unit 7. Based on such processing, the fourth processing unit 25 further receives the value of impacts 2 of a plurality of enterprises belonging to that particular sector, and the financial data 6 of each 15 of the enterprise from the memory unit 7, and generates a Benchmark value of impact 27 of the sector relates to general environmental performance of enterprises in particular sector. The memory unit 7 includes a benchmark value database 28, and receives the benchmark value of impact 27 from the fourth processing unit 25, and stores them. In an alternate embodiment, where the Benchmark value of not required to be presented, such processing functionality is not required, 20 and hence the fourth processing unit 25 may not be required.
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The display unit 9 is in communication with the first processing unit 9. The first processing unit 9 fetches the benchmark value of impact 27 for a sector to which an enterprise belongs to, and display it along with the value of impacts 2 due to water import in the geographical area due to the enterprise, and the externality cost of water consumption 10. In one embodiment only the benchmark value of impact 27 is displayed along with the value of impacts 2 on the display unit 5 29.
In one embodiment, the predefined size of the geographical area is considered for carrying out various estimations by the system 1. In one embodiment, this predefined size for each geographical area is of 50 km * 50 km. 10
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LIST OF REFERENCE NUMERALS
1 System
2 Impact
3 Input unit
4 Location information 5
5 Water consumption data
6 Financial data
7 Memory unit
8 Externality cost of water data
9 First processing unit 10
10 Externality cost of water consumption
11 Second Processing unit
12 First externality cost
13 Second externality cost
14 Third externality cost 15
15 Energy consumption data
16 Macro geographical area externality cost
17 GDP loss data
18 First disability data
19 Water baseline stress data 20
20 Agricultural water usage data
21 Human development index data
22 Third processing unit
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23 Malnutrition related data
24 Second disability data
25 Fourth processing unit
26 Sector information
27 Benchmark value of impact 5
28 Benchmark value database
29 Display unit