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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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Welfare costs of outdoor air pollution to 2060

This chapter presents the results of the analysis of the welfare costs of outdoor air pollution. It starts with an assessment of welfare costs related to the non-market impacts, including both mortality and morbidity, namely those related to the disutility caused by illness. The chapter ends with a discussion of the possibility to compare and add market and non-market costs when they are both expressed as welfare costs. While non-market costs are evaluated through the results of willingness-to-pay studies, market costs are calculated with the ENV-Linkages model and expressed in welfare terms using equivalent variation of income.

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