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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. Copyright 1995 Western Economic Association International.

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
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    File URL: http://www.blackwell-synergy.com/doi/abs/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. 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.
    3. repec:aph:ajpbhl:1989:79:5:623-628_7 is not listed on IDEAS
    4. Gary King, 1989. "A Seemingly Unrelated Poisson Regression Model," Sociological Methods & Research, , vol. 17(3), pages 235-255, February.
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    Cited by:

    1. Kenneth Y. Chay & Michael Greenstone, 2003. "The Impact of Air Pollution on Infant Mortality: Evidence from Geographic Variation in Pollution Shocks Induced by a Recession," The Quarterly Journal of Economics, Oxford University Press, vol. 118(3), pages 1121-1167.
    2. Kahn, Matthew E., 1997. "Particulate pollution trends in the United States," Regional Science and Urban Economics, Elsevier, vol. 27(1), pages 87-107, February.
    3. Joshua Graff Zivin & Matthew Neidell, 2013. "Environment, Health, and Human Capital," Journal of Economic Literature, American Economic Association, vol. 51(3), pages 689-730, September.
    4. Kahn, Matthew E., 2004. "Domestic pollution havens: evidence from cancer deaths in border counties," Journal of Urban Economics, Elsevier, vol. 56(1), pages 51-69, July.
    5. Matilde Bombardini & Bingjing Li, 2016. "Trade, Pollution and Mortality in China," NBER Working Papers 22804, National Bureau of Economic Research, Inc.
    6. Dora L. Costa & Joanna Lahey, 2003. "Becoming Oldest-Old: Evidence from Historical U.S. Data," NBER Working Papers 9933, National Bureau of Economic Research, Inc.
    7. Kahn, Matthew E., 1999. "The Silver Lining of Rust Belt Manufacturing Decline," Journal of Urban Economics, Elsevier, vol. 46(3), pages 360-376, November.
    8. Matthew E Kahn, 1997. "The Silver Lining Of Rust Belt Manufacturing Decline: Killing Off Pollution Externalities," Working Papers 97-7, Center for Economic Studies, U.S. Census Bureau.
    9. Matthew Neidell, 2009. "Information, Avoidance Behavior, and Health: The Effect of Ozone on Asthma Hospitalizations," Journal of Human Resources, University of Wisconsin Press, vol. 44(2).
    10. Marcotte, Dave E., 2017. "Something in the air? Air quality and children's educational outcomes," Economics of Education Review, Elsevier, vol. 56(C), pages 141-151.
    11. Matthew J. Neidell, 2008. "Information, Avoidance Behavior, and Health: The Effect of Ozone on Asthma Hospitalizations," NBER Working Papers 14209, National Bureau of Economic Research, Inc.
    12. Kenneth Y. Chay & Michael Greenstone, 2005. "Does Air Quality Matter? Evidence from the Housing Market," Journal of Political Economy, University of Chicago Press, vol. 113(2), pages 376-424, April.
    13. Anett C. Hansen & Harald K. Selte, 1997. "Air Pollution and Sick-leaves - is there a Connection? A Case Study using Air Pollution Data from Oslo," Discussion Papers 197, Statistics Norway, Research Department.
    14. Neophyta Empora, 2017. "Air pollution spillovers and U.S. state productivity growth," University of Cyprus Working Papers in Economics 06-2017, University of Cyprus Department of Economics.
    15. Enrico Moretti & Matthew Neidell, 2011. "Pollution, Health, and Avoidance Behavior: Evidence from the Ports of Los Angeles," Journal of Human Resources, University of Wisconsin Press, vol. 46(1), pages 154-175.
    16. Neidell, Matthew J., 2004. "Air pollution, health, and socio-economic status: the effect of outdoor air quality on childhood asthma," Journal of Health Economics, Elsevier, vol. 23(6), pages 1209-1236, November.
    17. Greenstone, Michael, 2004. "Did the Clean Air Act cause the remarkable decline in sulfur dioxide concentrations?," Journal of Environmental Economics and Management, Elsevier, vol. 47(3), pages 585-611, May.
    18. Anett Hansen & Harald Selte, 2000. "Air Pollution and Sick-leaves," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 16(1), pages 31-50, May.

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