IDEAS home Printed from https://ideas.repec.org/p/rff/dpaper/dp-14-30.html
   My bibliography  Save this paper

How Should the World Bank Estimate Air Pollution Damages?

Author

Listed:
  • Cropper, Maureen

    (Resources for the Future)

  • Khanna, Shefali

Abstract

We evaluate the approach currently used by the World Bank to measure exposure to outdoor air pollution and associated economic costs, as reported in the World Development Indicators database. We recommend that current exposure estimates, based on an econometric model, be replaced by estimates used in computing the Global Burden of Disease (GBD). The GBD combines satellite data with chemical transport models to provide global estimates of fine particle exposure. We recommend that the World Bank also use estimates of disability-adjusted life years (DALYs) lost due to outdoor air pollution produced by the GBD. DALYs should continue to be monetized using the value of a statistical life year, which is currently transferred from a US value of a statistical life (VSL) using an income elasticity of one. Going forward, it would be desirable to allow the income elasticity of the VSL to vary with income and to revisit the choice of baseline VSL.

Suggested Citation

  • Cropper, Maureen & Khanna, Shefali, 2014. "How Should the World Bank Estimate Air Pollution Damages?," RFF Working Paper Series dp-14-30, Resources for the Future.
    • Handle: RePEc:rff:dpaper:dp-14-30
    as

    Download full text from publisher

    File URL: http://www.rff.org/RFF/documents/RFF-DP-14-30.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alberini, Anna & Cropper, Maureen & Krupnick, Alan & Simon, N.B.Nathalie B., 2004. "Does the value of a statistical life vary with age and health status? Evidence from the US and Canada," Journal of Environmental Economics and Management, Elsevier, vol. 48(1), pages 769-792, July.
    2. Maureen Cropper & James K. Hammitt & Lisa A. Robinson, 2011. "Valuing Mortality Risk Reductions: Progress and Challenges," Annual Review of Resource Economics, Annual Reviews, vol. 3(1), pages 313-336, October.
    3. Hammitt James K. & Robinson Lisa A, 2011. "The Income Elasticity of the Value per Statistical Life: Transferring Estimates between High and Low Income Populations," Journal of Benefit-Cost Analysis, De Gruyter, vol. 2(1), pages 1-29, January.
    4. L. Cropper, Maureen & Sahin, Sebnem, 2009. "Valuing mortality and morbidity in the context of disaster risks," Policy Research Working Paper Series 4832, The World Bank.
    5. Hammitt James K. & Robinson Lisa A, 2011. "The Income Elasticity of the Value per Statistical Life: Transferring Estimates between High and Low Income Populations," Journal of Benefit-Cost Analysis, De Gruyter, vol. 2(1), pages 1-29, January.
    6. Krupnick, Alan J & Cropper, Maureen L, 1992. "The Effect of Information on Health Risk Valuations," Journal of Risk and Uncertainty, Springer, vol. 5(1), pages 29-48, February.
    7. Cropper, Maureen L. & G. Sussman, Frances, 1990. "Valuing future risks to life," Journal of Environmental Economics and Management, Elsevier, vol. 19(2), pages 160-174, September.
    8. Alan Krupnick, 2007. "Mortality-risk Valuation and Age: Stated Preference Evidence," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 1(2), pages 261-282, Summer.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Marco Ravina & Deborah Panepinto & Mariachiara Zanetti, 2019. "Air Quality Planning and the Minimization of Negative Externalities," Resources, MDPI, vol. 8(1), pages 1-18, January.
    2. Jing Zhang & Roger Raufer & Lingxuan Liu, 2020. "Solar Home Systems for Clean Cooking: A Cost–Health Benefit Analysis of Lower-Middle-Income Countries in Southeast Asia," Sustainability, MDPI, vol. 12(9), pages 1-14, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lisa A. Robinson & James K. Hammitt, 2016. "Valuing Reductions in Fatal Illness Risks: Implications of Recent Research," Health Economics, John Wiley & Sons, Ltd., vol. 25(8), pages 1039-1052, August.
    2. James K. Hammitt, 2020. "Valuing mortality risk in the time of COVID-19," Journal of Risk and Uncertainty, Springer, vol. 61(2), pages 129-154, October.
    3. Henry A. Roman & James K. Hammitt & Tyra L. Walsh & David M. Stieb, 2012. "Expert Elicitation of the Value per Statistical Life in an Air Pollution Context," Risk Analysis, John Wiley & Sons, vol. 32(12), pages 2133-2151, December.
    4. Henrik Andersson & James Hammitt & Gunnar Lindberg & Kristian Sundström, 2013. "Willingness to Pay and Sensitivity to Time Framing: A Theoretical Analysis and an Application on Car Safety," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 56(3), pages 437-456, November.
    5. Maureen Cropper & James K. Hammitt & Lisa A. Robinson, 2011. "Valuing Mortality Risk Reductions: Progress and Challenges," Annual Review of Resource Economics, Annual Reviews, vol. 3(1), pages 313-336, October.
    6. Robinson, Lisa A. & Hammitt, James K., 2013. "Skills of the trade: valuing health risk reductions in benefit-cost analysis," Journal of Benefit-Cost Analysis, Cambridge University Press, vol. 4(1), pages 107-130, March.
    7. Herrera-Araujo, Daniel & Rochaix, Lise, 2020. "Does the Value per Statistical Life vary with age or baseline health? Evidence from a compensating wage study in France," Journal of Environmental Economics and Management, Elsevier, vol. 103(C).
    8. James K. Hammitt & Peter Morfeld & Jouni T. Tuomisto & Thomas C. Erren, 2020. "Premature Deaths, Statistical Lives, and Years of Life Lost: Identification, Quantification, and Valuation of Mortality Risks," Risk Analysis, John Wiley & Sons, vol. 40(4), pages 674-695, April.
    9. Anna Alberini, 2017. "Measuring the economic value of the effects of chemicals on ecological systems and human health," OECD Environment Working Papers 116, OECD Publishing.
    10. Lisa A. Robinson & James K. Hammitt, 2013. "Behavioral economics and the conduct of benefit–cost analysis: towards principles and standards," Chapters, in: Scott O. Farrow & Richard Zerbe, Jr. (ed.), Principles and Standards for Benefit–Cost Analysis, chapter 10, pages 317-363, Edward Elgar Publishing.
    11. Lisa A. Robinson & James K. Hammitt, 2011. "Behavioral Economics and Regulatory Analysis," Risk Analysis, John Wiley & Sons, vol. 31(9), pages 1408-1422, September.
    12. Shihomi Ara & Cem Tekeşin, 2017. "The Monetary Valuation of Lifetime Health Improvement and Life Expectancy Gains in Turkey," IJERPH, MDPI, vol. 14(10), pages 1-27, September.
    13. James K. Hammitt & Jin-Tan Liu & Jin-Long Liu, 2022. "Is survival a luxury good? Income elasticity of the value per statistical life," Journal of Risk and Uncertainty, Springer, vol. 65(3), pages 239-260, December.
    14. García-Witulski, Christian & Rabassa, Mariano Javier & Conte Grand, Mariana & Rozenberg, Julie, 2023. "Valuing mortality attributable to present and future temperature extremes in Argentina," Economics & Human Biology, Elsevier, vol. 51(C).
    15. Anna Alberini & Milan Ščasný, 2021. "On the validity of the estimates of the VSL from contingent valuation: Evidence from the Czech Republic," Journal of Risk and Uncertainty, Springer, vol. 62(1), pages 55-87, February.
    16. Henrik Lindhjem & Ståle Navrud & Nils Axel Braathen & Vincent Biausque, 2011. "Valuing Mortality Risk Reductions from Environmental, Transport, and Health Policies: A Global Meta‐Analysis of Stated Preference Studies," Risk Analysis, John Wiley & Sons, vol. 31(9), pages 1381-1407, September.
    17. Je-Liang Liou, 2019. "Effect of Income Heterogeneity on Valuation of Mortality Risk in Taiwan: An Application of Unconditional Quantile Regression Method," IJERPH, MDPI, vol. 16(9), pages 1-15, May.
    18. Hammitt, James K. & Robinson, Lisa A., 2011. "The Income Elasticity of the Value per Statistical Life: Transferring Estimates between High and Low Income Populations," Journal of Benefit-Cost Analysis, Cambridge University Press, vol. 2(1), pages 1-29, January.
    19. Hoffmann, Sandra & Qin, Ping & Krupnick, Alan & Badrakh, Burmaajav & Batbaatar, Suvd & Altangerel, Enkhjargal & Sereeter, Lodoysamba, 2012. "The willingness to pay for mortality risk reductions in Mongolia," Resource and Energy Economics, Elsevier, vol. 34(4), pages 493-513.
    20. Aniruddh Mohan & Nicholas Z. Muller & Akshay Thyagarajan & Randall V. Martin & Melanie S. Hammer & Aaron van Donkelaar, 2020. "The Growth of Nations Revisited: Global Environmental Accounting from 1998 to 2018," NBER Working Papers 27398, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    air pollution exposure; valuing DALYs; Global Burden of Disease;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rff:dpaper:dp-14-30. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Resources for the Future (email available below). General contact details of provider: https://edirc.repec.org/data/rffffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.