The Cost of Air Pollution

Health Impacts of Road Transport

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Outdoor air pollution kills more than 3 million people across the world every year, and causes health problems from asthma to heart disease for many more. This is costing societies very large amounts in terms of the value of lives lost and ill health. Based on extensive new epidemiological evidence since the 2010 Global Burden of Disease study, and OECD estimates of the Value of Statistical Life, this report provides evidence on the health impacts from air pollution and the related economic costs.

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Rethinking appraisals to mitigate the health impacts of air pollution from road transport

This chapter explores some of the policy implications of the cost burden of the health impacts of outdoor air pollution. It argues the need to maintain strong regulatory regimes – in particular, a strict vehicle standards regime – but also the need the rethink the regulatory and tax settings for diesel vehicles. This chapter also shows that the benefits of reducing the economic cost burden imposed by air pollution could easily outweigh the monetary costs of investments in more ambitious mitigation programmes, and that it is necessary, generally speaking, to rethink the approach to investment appraisals.

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