
Air pollution is a pressing issue that poses significant economic and health costs to societies worldwide. It is considered the greatest environmental health threat, causing approximately 7 million premature deaths annually. The economic sectors contributing to air pollution, such as agriculture, utilities, manufacturing, and transportation, bear substantial financial burdens. In 2013, global welfare losses from fine particulate matter pollution reached $5.11 trillion, with health impacts including increased risks of stroke, heart disease, lung cancer, and respiratory illnesses. The World Health Organization (WHO) has initiated projects like Estimating the Morbidity from Air Pollution and its Economic Costs (EMAPEC) to address the adverse health effects and associated economic consequences. While air pollution presents a complex challenge, taking immediate action and implementing policies to reduce pollution can lead to significant net savings and improvements in health, climate, and economic welfare.
Characteristics | Values |
---|---|
Economic costs | $5.11 trillion in 2013 |
$18-25 trillion in 2016 | |
$32 trillion net savings if the Paris Agreement targets are achieved | |
Health impacts | 4.2 million premature deaths worldwide in 2019 |
4 million cases of child asthma in 2018 | |
2 million premature births in 2018 | |
Increased risk of stroke, heart disease, lung cancer, and chronic and acute respiratory diseases | |
Reduced productivity and cognitive functions | |
Increased healthcare costs | |
Environmental impacts | Negative effects on ecosystems, infrastructure, and climate |
Industrial sector impacts | Agriculture, utilities, manufacturing, and transportation are the top contributors to air pollution-related damages |
Fossil fuel PM2.5 pollution caused 1.8 billion days of work absence in 2018 | |
Over 10,000 industrial facilities in Europe caused external costs of air pollution from 2012-2021 | |
The energy sector (thermal plants) contributed to almost 80% of the decrease in total external costs during the last decade | |
Geographical scope | EU-27, Albania, Bosnia and Herzegovina, Iceland, Kosovo, Liechtenstein, Montenegro, North Macedonia, Norway, Serbia, Switzerland, and Turkey |
What You'll Learn
- Health costs: increased risk of stroke, heart disease, lung cancer, and respiratory diseases
- Economic costs: loss of workforce and healthcare costs
- Environmental costs: impact on ecosystems and climate
- Welfare costs: loss from individual paychecks, consumption, and leisure
- Food security: reduced crop yields and nutrition
Health costs: increased risk of stroke, heart disease, lung cancer, and respiratory diseases
Air pollution has been linked to a range of serious health issues, including an increased risk of stroke, heart disease, lung cancer, and respiratory diseases. These health costs are significant and pose a major public health challenge, particularly in low- and middle-income countries where air pollution levels are projected to rise due to industrialization.
Stroke
Multiple studies have found a strong association between air pollution and an increased risk of stroke. This is particularly true for populations exposed to high levels of airborne particulate matter (PM), including PM2.5 and PM10, and gaseous pollutants such as nitrogen dioxide (NO2), sulphur dioxide (SO2), and carbon monoxide (CO). The impact of air pollution on stroke risk is comparable to that of traditional cardiovascular disease risk factors.
Heart Disease
Air pollution, specifically particle pollution, has been linked to an increased risk of cardiovascular disease. Short- and long-term exposure to fine particulate matter can lead to serious cardiovascular events, such as coronary syndrome, arrhythmia, heart failure, and sudden cardiac death, especially in individuals with pre-existing heart conditions.
Lung Cancer
Overwhelming evidence indicates that outdoor air pollution, particularly particle pollution from vehicle exhaust, coal-fired power plants, and industrial sources, is a risk factor for lung cancer. These fine particles can enter deep into the lungs and interfere with their growth and function, increasing the risk of early death.
Respiratory Diseases
Air pollution exacerbates respiratory conditions and contributes to a range of respiratory diseases. It can cause inflammation, oxidative stress, and changes in the immune system, particularly in vulnerable populations such as children, older adults, and those with pre-existing respiratory disorders. Climate change is expected to worsen respiratory health by increasing air pollution levels, leading to a greater burden of respiratory diseases worldwide.
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Economic costs: loss of workforce and healthcare costs
Air pollution has a significant impact on the global economy, with a range of economic costs. These include healthcare costs associated with pollution-related illnesses and deaths, as well as costs linked to environmental damage and lost ecosystem services. In 2018, air pollution cost the global economy an estimated $2.9 trillion, corresponding to 3.3% of the world's GDP.
Economic Costs: Loss of Workforce
Air pollution has a detrimental effect on workforce productivity and economic activity. Poor air quality can lead to an increase in illness and mortality, resulting in a higher number of workdays lost. Globally, an estimated 1.2 billion workdays are lost each year due to air pollution, and this number could reach 3.8 billion days by 2060. The loss of productivity has a significant economic impact, with companies bearing the brunt of these costs.
In India, for example, reduced productivity, work absences, and premature deaths caused by air pollution cost the economy an estimated $95 billion in 2019, or 3% of the country's GDP. Similarly, the EU experiences losses of €600 billion annually, or 4% of its GDP, due to the impacts of air pollution.
Healthcare Costs
The healthcare costs associated with air pollution are substantial. In the United States, cardiovascular disease and respiratory conditions caused by air pollution result in an estimated 107,000 premature deaths and $820 billion in annual healthcare costs. Additionally, air pollution from wildfire smoke costs Americans $16 billion annually, with 6,200 respiratory hospital visits and 1,700 PM2.5-related deaths.
The World Economic Forum estimates that a 10 mg/m3 decrease in PM2.5 pollution would reduce China's annual healthcare spending by more than $9.2 billion. This reduction in air pollution would lead to significant economic gains, as lower healthcare costs and improved health outcomes are closely linked to stronger economic growth.
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Environmental costs: impact on ecosystems and climate
Air pollution is the greatest environmental health threat on Earth, with 9 out of 10 people breathing air that exceeds the World Health Organization's (WHO) guidelines. While the economic costs of air pollution are clear, the environmental costs are also significant.
The impact of air pollution on ecosystems and the climate is profound. Over the last decade, the external costs caused by air pollution from industry in Europe decreased by nearly 35%, with almost 80% of this decrease occurring in the energy sector. This is due to the implementation of best available techniques (BAT) and a shift to less polluting and carbon-intensive fuels. However, significant costs persist, indicating the need for continued action to further reduce pollution levels. The European Green Deal, for example, aims to transform Europe's industry towards a more digital and green future, with a Zero Pollution ambition.
The highest environmental costs of air pollution are often related to human activities, particularly economic sectors such as manufacturing and agriculture. These activities contribute to the emission of fine particulate matter (PM2.5), which has detrimental effects on ecosystems and the climate. PM2.5 pollution can lead to increased levels of ground-level ozone (O3), which is a major driver of climate change and has negative impacts on crop quality and production. It is predicted that O3 will reduce stable crop yields by 26% in 2030, threatening global food security and nutrition.
Additionally, air pollution can have indirect costs, such as the impact on water resources. When O3 dissolves in water, it creates toxic byproducts that can damage aquatic ecosystems and affect water quality. Air pollution can also contribute to the acidification of water bodies, further degrading ecosystems and disrupting the natural balance of aquatic life.
The costs of air pollution on ecosystems and the climate are far-reaching and interconnected. By addressing the root causes of air pollution, such as the implementation of cleaner energy sources and the reduction of emissions, we can mitigate the environmental impacts and work towards a more sustainable future.
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Welfare costs: loss from individual paychecks, consumption, and leisure
Air pollution is the greatest environmental health threat on Earth, with approximately 7 million deaths worldwide every year. It is therefore no surprise that it comes at a high cost.
The welfare costs of air pollution refer to the economic losses that individuals face as a result of their exposure. These costs include a loss of income, a reduction in consumption, and a decrease in leisure time.
Firstly, individuals may suffer a loss of income due to time off work as a result of illness or an increased risk of premature death caused by air pollution. This loss of income can have a significant impact on an individual's financial situation and their ability to provide for themselves and their families.
Secondly, the consumption of goods and services may be affected by air pollution. As income is used to purchase goods, a loss of income can result in reduced consumption. This can have a negative impact on the economy as a whole, as well as on the individual's standard of living.
Thirdly, leisure time can also be impacted by air pollution. Leisure time is important for individuals' well-being, as it provides time for rest, recreation, and personal enjoyment. However, air pollution can lead to a decrease in leisure time in two ways. Firstly, individuals may need to work longer hours to make up for any income lost due to time off work. Secondly, the value of leisure time is often traded off against income, with individuals choosing to work more in order to earn a higher income.
It is important to note that the costs of air pollution are not solely economic. Air pollution has severe health consequences, including an increased risk of stroke, heart disease, lung cancer, and respiratory diseases. These health impacts can further contribute to the economic costs, as they result in higher healthcare expenditures and a loss of productivity.
While the costs of air pollution are significant, there is hope for improvement. Recent studies have shown a decline in air pollution levels and associated damages, thanks to the adoption of cleaner energy sources, the retirement of heavy manufacturing industries, and economic recessions. Additionally, achieving the Paris Agreement targets for mitigating climate change is predicted to result in substantial net savings, further emphasizing the importance of taking immediate action against air pollution.
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Food security: reduced crop yields and nutrition
Air pollution has a significant impact on food security, affecting crop yields and nutrition. Firstly, air pollution stunts crop growth by weakening photosynthesis, the process by which plants convert sunlight into energy. Tropospheric ozone, a harmful airborne toxin, causes substantial losses in major staple crops such as wheat, rice, maize, and soybeans. This accounts for approximately 4% of total annual global crop production, with even higher percentages in certain regions. Black carbon, a component of fine particulate matter, also harms crops by increasing the plant's temperature and disrupting rainfall patterns. The effects of these pollutants lead to reduced crop yields and contribute to food insecurity.
Climate change, driven in part by air pollution, poses additional challenges to food security. Rising temperatures and carbon dioxide concentrations can lower the yields of key commodity crops, such as corn, rice, and oats. Heat stress, for example, can reduce milk production in dairy cows and negatively impact the appetite of livestock. Climate change can also lead to more frequent and severe droughts, heavy rainfall, and extreme weather events, further disrupting agricultural practices and crop yields.
The impact of air pollution on crops is not limited to direct damage. Pollutants like nitrogen oxides, emitted from vehicles and industrial sources, can indirectly affect crops by contributing to the formation of ozone and particulate matter. These pollutants can scatter sunlight away from crops, reducing the amount of light available for photosynthesis. Additionally, air pollution can negatively impact pollinators like honey bees, which are integral to ecosystem health and food resource security.
Addressing air pollution is crucial for mitigating its negative effects on food security. By reducing methane emissions and black carbon, we can halve global crop losses by 2050, saving billions of dollars and improving food availability. Implementing climate-smart farming methods, such as reducing pesticide use and improving pollination, can boost crop resistance and enhance yields. Additionally, adopting sustainable agricultural practices and reducing short-lived climate pollutants can help stabilize the climate and limit warming, benefiting both food security and human health.
The relationship between air pollution and agriculture is bidirectional, as agriculture also contributes to air pollution. However, by recognizing the impact of air pollution on food security and taking proactive measures, we can work towards ensuring sufficient and nutritious food resources for a growing global population.
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Frequently asked questions
Air pollution has a significant economic impact, with the total cost estimated to be US $2.9 trillion in 2018, accounting for about 3.3% of global GDP. This includes healthcare costs, loss of workforce, and welfare losses due to premature deaths. The costs vary across different sectors, with agriculture, utilities, manufacturing, and transportation being the top contributors to air pollution-related damages.
Air pollution has adverse effects on human health, leading to an increased risk of stroke, heart disease, lung cancer, and respiratory diseases. In the United States, it is estimated that air pollution costs each American $2,500 per year in healthcare expenses, with a national price tag of over $820 billion annually.
In addition to direct healthcare costs, air pollution has indirect economic impacts. Ground-level ozone (O3) affects crop quality and production, particularly for soybean, wheat, rice, maize, and barley. Air pollution also contributes to climate change, leading to extreme weather events such as heat waves and wildfires, which have significant economic consequences.