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Morbidity Costs of Vehicular Air Pollution: Examining Dhaka City in Bangladesh

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  • Tanzir Chowdhury
  • Mohammad Imran
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    Abstract

    This study estimates the morbidity costs of reduction in air pollution in Dhaka, the capital of Bangladesh, using the Cost-of-Illness (COI) approach. COI is defined as the sum of lost earnings due to workdays lost or restricted activity days and the mitigation expenditure borne due to illness. The data for the research comes from seasonal household surveys using health diaries. We use a random-effects Zero Inflated Poisson regression model to estimate the equation for lost earnings and use a random-effects Tobit Regression to estimate the equation for mitigation expenditure. We find that the annual savings from reducing air pollution to meet national safety standards is Taka 131.37 (USD 1.88) per person from reductions in lost earnings and Taka 150.49 (USD 2.15) per person from reductions in medical expenditure. The annual saving to the population of Dhaka is Taka 2.39 billion or USD 34.09 million. Our estimates, which are based on primary data, provide significantly lower estimates of the benefits of reducing air pollution in Dhaka relative to previous analyses that has relied on the benefit-transfer approach. [SANDEE Working Paper No. 47-10]

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    Bibliographic Info

    Paper provided by eSocialSciences in its series Working Papers with number id:2677.

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    Date of creation: Jul 2010
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    Handle: RePEc:ess:wpaper:id:2677

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    Related research

    Keywords: Air Pollution; Health Benefit; Health Production Function; Cost-of-Illness; Panel Data; Random-Effects Zero Inflated Poisson Model; Random-Effects Tobit Model;

    This paper has been announced in the following NEP Reports:

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    1. Hsiao,Cheng, 2003. "Analysis of Panel Data," Cambridge Books, Cambridge University Press, number 9780521522717.
    2. repec:ind:iegddp:62 is not listed on IDEAS
    3. Dickie, M. & Gerking, S.D., 1991. "Valuing reduced morbidity: A household production approach," Open Access publications from Tilburg University urn:nbn:nl:ui:12-4742834, Tilburg University.
    4. Harrington, Winston & Portney, Paul R., 1987. "Valuing the benefits of health and safety regulation," Journal of Urban Economics, Elsevier, vol. 22(1), pages 101-112, July.
    5. Cropper, M L, 1981. "Measuring the Benefits from Reduced Morbidity," American Economic Review, American Economic Association, vol. 71(2), pages 235-40, May.
    6. Maureen L. Cropper & Nathalie B. Simon & Anna Alberini & Seema Arora & P.K. Sharma, 1997. "The Health Benefits of Air Pollution Control in Delhi," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(5), pages 1625-1629.
    7. Usha Gupta, 2008. "Valuation of Urban Air Pollution: A Case Study of Kanpur City in India," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 41(3), pages 315-326, November.
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