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The Economic Consequences of Outdoor Air Pollution

image of The Economic Consequences of Outdoor Air Pollution

This report provides a comprehensive assessment of the economic consequences of outdoor air pollution in the coming decades, focusing on the impacts on mortality, morbidity, and changes in crop yields as caused by high concentrations of pollutants. Unless more stringent policies are adopted, findings point to a significant increase in global emissions and concentrations of air pollutants, with severe impacts on human health and the environment. The market impacts of outdoor air pollution are projected to lead to significant economic costs, which are illustrated at the regional and sectoral levels, and to substantial annual global welfare costs.

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A framework for assessing the economic consequences of outdoor air pollution

This chapter presents the methodology used in this report to analyse the economic consequences of outdoor air pollution. The methodology is based on the impact pathway approach, which requires multiple steps, from creating projections of air pollutant emissions, to calculating concentrations of key pollutants, calculating the biophysical impacts on health and crop yields, and calculating the economic costs with the ENV-Linkages model for market impacts and with results of direct valuation studies for non-market impacts. For each step the modelling framework and economic techniques used are explained.

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