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External Health Costs Of A Steel Mill

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  • MICHAEL R RANSOM
  • C. ARDEN POPE III

Abstract

Intermittent operation of a steel mill in a mountain valley in central Utah provides a unique opportunity to measure the external health costs of air pollution. A nearby valley provides a control. This paper analyzes data on hospital admissions and daily deaths for the two valleys, using negative binomial regression models of daily hospital admissions and deaths. Hospital admissions for respiratory diseases increase significantly when the mill is in operation. Mortality also increases during mill operation. Estimated excess hospitalization costs are about 2 million dollars per year, and the increased cost of mortality exceeds 40 million dollars per year.

Suggested Citation

  • Michael R Ransom & C. Arden Pope Iii, 1995. "External Health Costs Of A Steel Mill," Contemporary Economic Policy, Western Economic Association International, vol. 13(2), pages 86-97, April.
    • Handle: RePEc:bla:coecpo:v:13:y:1995:i:2:p:86-97
    DOI: 10.1111/j.1465-7287.1995.tb00745.x
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    References listed on IDEAS

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    1. Mishan, E J, 1971. "Evaluation of Life and Limb: A Theoretical Approach," Journal of Political Economy, University of Chicago Press, vol. 79(4), pages 687-705, July-Aug..
    2. Arden Pope III, C., 1989. "Respiratory disease associated with community air pollution and a steel mill, Utah Valley," American Journal of Public Health, American Public Health Association, vol. 79(5), pages 623-628.
    3. Conley, Bryan C, 1976. "The Value of Human Life in the Demand for Safety," American Economic Review, American Economic Association, vol. 66(1), pages 45-55, March.
    4. Gary King, 1989. "A Seemingly Unrelated Poisson Regression Model," Sociological Methods & Research, , vol. 17(3), pages 235-255, February.
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