Measuring Welfare Loss Caused by Air Pollution in Europe: A CGE Analysis
Name
MITJPSPGC_Rpt178.pdf
Size
1.4 MB
Format
Adobe PDF
Checksum (MD5)
accb7e588896cdd531fad12206e64947
Author(s)
Paltsev, Sergey
Reilly, John M.
Selin, Noelle E.
Nam, Kyung-Min
Date Issued
August 2009
Publisher
MIT Joint Program on the Science and Policy of Global Change
Citation
Report no. 178
Series/Report no.
;Report no. 178
Abstract
To evaluate the socio-economic impacts of air pollution, we develop an integrated approach based on computable general equilibrium (CGE). Applying our approach to Europe shows that even there, where air quality is relatively high compared with other parts of the world, health-related damages caused by air pollution are substantial. We estimate that in 2005, air pollution in Europe caused a consumption loss of around 220 billion Euro (year 2000 prices, around 3 percent of consumption level) and a social welfare loss of around 370 billion Euro, measured as the sum of lost consumption and leisure (around 2 percent of welfare level). In addition, we estimated that a set of 2020-targeting air quality improvement policy scenarios, which are proposed in the 2005 CAFE program, would bring 18 European countries as a whole a welfare gain of 37 to 49 billion Euro (year 2000 prices) in year 2020 alone.
Description
Abstract and PDF report are also available on the MIT Joint Program on the Science and Policy of Global Change website (http://globalchange.mit.edu/).
