April 17, 2011

Health Damages from Air Pollution in China

by Kira Matus, Kyung-Min Nam, Noelle E. Selin, Lok N. Lamsal, John M. Reilly and Sergey Paltsev

- In China, elevated levels of urban air pollution result in substantial adverse health impacts for its large and rapidly growing urban population. An expanded version of the Emissions Prediction and Policy Analysis (EPPA), EPPA Health Effects, was used to evaluate air pollution-related health impacts on the Chinese economy. The estimated marginal welfare impact to the Chinese economy of air pollution levels above background levels increased from $22 billion in 1975 to $112 billion in 2005 (1997 US$), despite improvements in overall air quality. This increase is a result of the growing urban population and rising wages that thus increased the value of lost labor and leisure.

Matus, K., K-M Nam, N.E. Selin, L.N. Lamsal, J.M. Reilly and S. Paltsev (2011). "Health Damages from Air Pollution in China." MIT Joint Program Report Series No. 196, Mar 2011.