The Economic Consequences of Outdoor Air Pollution

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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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Consequences of outdoor air pollution for economic growth

This chapter presents the results of the numerical simulations with the ENV-Linkages model on the macroeconomic costs of outdoor air pollution. It first presents the results relative to each impact considered in the report, and then it illustrates results of the impacts as considered together. The focus of this chapter is on market impacts, and macroeconomic costs, but the chapter also investigates regional and sectoral consequences. The results include both direct market impacts, such as those related to changes in crop yields, and indirect impacts, such as those related to the changes in international trade flows due to the regional changes in crop yields.

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