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The value of health benefits from ambient air quality improvements in Central and Eastern Europe: An exercise in benefits transfer

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  • Alan fnKrupnick
  • Kenneth fnHarrison
  • Eric fnNickell
  • Michael fnToman

Abstract

This study is an initial effort to estimate one important category of benefits of environmental improvements in Central and Eastern Europe (CEE), those related to the effects of air pollution on human health. Our estimates are derived from data on ambient air quality in selected CEE locations, together with a model that links these ambient conditions to physical impacts on health and attaches economic values (in dollar terms) to these impacts. Given data limitations, our focus here is on three pollutants: particulates (PM), sulfur dioxide (SO 2 ), and lead (Pb). Our data set includes ambient concentrations for these pollutants in four CEE countries: Bulgaria, Hungary, Poland, and Ukraine. Given the ambient data, dose-response functions taken from the clinical and epidemiological literature in the U.S., Canada, and Western Europe are used to generate estimates of the change in physical effects. These effects then are given an economic value by applying two approaches for scaling unit valuation figures applicable to the U.S. A Monte Carlo model is constructed to propagate the uncertainties of the dose-response functions and unit values to obtain confidence intervals on the total benefits from pollutant reductions in each country. We examine scenarios where the CEE countries improve ambient conditions for the pollutants in question to meet European Community (EC) standards and then compare these scenarios to ones involving uniform percentage ambient reductions across locations in each country. Copyright Kluwer Academic Publishers 1996

Suggested Citation

  • Alan fnKrupnick & Kenneth fnHarrison & Eric fnNickell & Michael fnToman, 1996. "The value of health benefits from ambient air quality improvements in Central and Eastern Europe: An exercise in benefits transfer," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 7(4), pages 307-332, June.
    • Handle: RePEc:kap:enreec:v:7:y:1996:i:4:p:307-332
    DOI: 10.1007/BF00369622
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    References listed on IDEAS

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    1. Hughes, Gordon, 1991. "Are the Costs of Cleaning Up Eastern Europe Exaggerated? Economic Reform and the Environment," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 7(4), pages 106-136, Winter.
    2. Ostro, Bart D., 1987. "Air pollution and morbidity revisited: A specification test," Journal of Environmental Economics and Management, Elsevier, vol. 14(1), pages 87-98, March.
    3. Richard T. Carson, 2011. "Contingent Valuation," Books, Edward Elgar Publishing, number 2489.
    4. Ostro, Bart, 1994. "Estimating the health effects of air pollutants : a method with an application to Jakarta," Policy Research Working Paper Series 1301, The World Bank.
    5. Krupnick, Alan J. & Harrington, Winston & Ostro, Bart, 1990. "Ambient ozone and acute health effects: Evidence from daily data," Journal of Environmental Economics and Management, Elsevier, vol. 18(1), pages 1-18, January.
    6. Michael Toman & Janusz Cofała & Robin Bates, 1994. "Alternative standards and instruments for air pollution control in Poland," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 4(5), pages 401-417, October.
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    1. Bartczak, Anna & Lindhjem, Henrik & Navrud, Ståle & Zandersen, Marianne & Zylicz, Tomasz, 2008. "Valuing forest recreation on the national level in a transition economy: The case of Poland," Forest Policy and Economics, Elsevier, vol. 10(7-8), pages 467-472, October.
    2. STÅLE Navrud & GERALD Pruckner, 1997. "Environmental Valuation – To Use or Not to Use? A Comparative Study of the United States and Europe," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 10(1), pages 1-26, July.
    3. Giles ATKINSON & Susana MOURATO, 2007. "Environmental valuation: a brief overview of options," Departmental Working Papers 2007-07, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    4. Nam, Kyung-Min & Selin, Noelle E. & Reilly, John M. & Paltsev, Sergey, 2010. "Measuring welfare loss caused by air pollution in Europe: A CGE analysis," Energy Policy, Elsevier, vol. 38(9), pages 5059-5071, September.

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