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Impact of COVID-19 Activity Restrictions on Air Pollution: Methodological Considerations in the Economic Valuation of the Long-Term Effects on Mortality

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  • Olivier Chanel

Abstract

[eng] This article offers an approach incorporating latency into the process for evaluating long-term mortality and into its economic valuation, following a temporary impact. It is applied to the effects of COVID-19 activity restrictions, in the spring of 2020, on ambient air pollution in France. These effects are evaluated in terms of Life Years Gained (LYG) and in monetary terms for two air pollution indicators. This approach is compared to a standard estimate on the basis of difference. It gives results that are lower by a factor of 3.7 to 5.5 for LYG and, on account of the additional effect of discounting, gives an economic valuation that is lower by a factor of 4.7 to 6.9. These results show that an adapted valuation of the long-term health benefits, then their translation into monetary terms, is essential in order to compare the long-term consequences of temporary exogenous impacts or policies.

Suggested Citation

  • Olivier Chanel, 2022. "Impact of COVID-19 Activity Restrictions on Air Pollution: Methodological Considerations in the Economic Valuation of the Long-Term Effects on Mortality," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 534-35, pages 103-118.
    • Handle: RePEc:nse:ecosta:ecostat_2022_534_6
    DOI: https://doi.org/10.24187/ecostat.2022.534.2081
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    1. Ingemar Leksell & Ari Rabl, 2001. "Air Pollution and Mortality: Quantification and Valuation of Years of Life Lost," Risk Analysis, John Wiley & Sons, vol. 21(5), pages 843-843, October.
    2. Olivier Chanel & Susann Henschel & Patrick G. Goodman & Antonis Analitis & Richard Atkinson & Alain Le Tertre & Ariana Zeka & S. Médina, 2014. "Economic valuation of the mortality benefits of a regulation on SO2 in 20 European cities," Post-Print hal-01463922, HAL.
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    4. Olivier Chanel & Stéphane Luchini, 2014. "Monetary values for risk of death from air pollution exposure: a context-dependent scenario with a control for intra-familial altruism," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 3(1), pages 67-91, March.
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    More about this item

    JEL classification:

    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General
    • I1 - Health, Education, and Welfare - - Health
    • 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

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