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


  • Tanzir Chowdhury
  • Mohammad Imran


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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  • Tanzir Chowdhury & Mohammad Imran, 2010. "Morbidity Costs of Vehicular Air Pollution: Examining Dhaka City in Bangladesh," Working Papers id:2677, eSocialSciences.
  • Handle: RePEc:ess:wpaper:id:2677
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    References listed on IDEAS

    1. 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.
    2. Daniel B. Hall, 2000. "Zero-Inflated Poisson and Binomial Regression with Random Effects: A Case Study," Biometrics, The International Biometric Society, vol. 56(4), pages 1030-1039, December.
    3. 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.
    4. Anna Alberini & Alan Krupnick, 2000. "Cost-of-Illness and Willingness-to-Pay Estimates of the Benefits of Improved Air Quality: Evidence from Taiwan," Land Economics, University of Wisconsin Press, vol. 76(1), pages 37-53.
    5. repec:ind:iegddp:62 is not listed on IDEAS
    6. Cropper, M L, 1981. "Measuring the Benefits from Reduced Morbidity," American Economic Review, American Economic Association, vol. 71(2), pages 235-240, May.
    7. Usha Gupta, 2008. "Valuation of Urban Air Pollution: A Case Study of Kanpur City in India," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 41(3), pages 315-326, November.
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    More about this item


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

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