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GTAP Resource #4957

"The economic consequences of air pollution"
by Lanzi, Elisa, Rob Dellink and Jean Chateau

Air pollution is one of the most serious environmental risks, particularly in big cities and highly populated areas. Previous work by the WHO and others has demonstrated the alarming consequences of outdoor and indoor air pollution on human health and in particular the large number of pollution-induced premature deaths. Projections of the global economic consequences of future air pollution are, however, entirely lacking.

This report provides a comprehensive assessment of the economic consequences of outdoor air pollution in the coming decades. The report focuses on the impacts of outdoor air pollution on mortality, morbidity (illness), and changes in crop yields as caused by high concentrations of particulate matter (PM2.5) and ground level ozone.

The analysis in this report covers the 2015-2060 period and is based on a multi-regional, multi-sectoral dynamic general equilibrium modelling assessment of the market costs of outdoor air pollution (focusing on labour productivity, health care expenditures due to illness and changes in crop yields). The modelling approach links economic activity to emissions of air pollutants, concentrations, biophysical impacts and finally feedback effects from these impacts on the economy.

Inevitably, uncertainties concerning the economic projections, the quantification of the biophysical impacts of outdoor air pollution and the evaluation of economic costs mean that the results need to be interpreted with due caution. However, this report provides for the first time a plausible global estimate of the magnitude of the economic consequences of a serious and deteriorating environmental challenge.

Resource Details (Export Citation) GTAP Keywords
Category: 2016 Conference Paper
Status: Published
By/In: Presented at the 19th Annual Conference on Global Economic Analysis, Washington DC, USA
Date: 2016
Created: Lanzi, E. (4/14/2016)
Updated: Lanzi, E. (6/15/2016)
Visits: 2,105
- Baseline development
- Trade and the environment
- Economic growth
- Health

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