IDEAS home Printed from https://ideas.repec.org/p/hhs/nierwp/0093.html
   My bibliography  Save this paper

Costs of Climate Policy when Pollution Affects Health and Labour Productivity. A general Equilibrium Analysis Applied to Sweden

Author

Listed:

Abstract

Much of the debate over global climate change involves estimates of the direct costs of global climate change mitigation. Recently this debate has included the issue of ancillary benefits. These benefits consist mainly of health improvements. Although it is generally acknowledged that air pollution affects respiratory health, and that valuations of these impacts make up a significant proportion of the damage costs of air pollution, these impacts are often neglected when evaluating the costs of climate policy. Since reducing greenhouse gases has the effect of also reducing other pollutants affecting human health and labour productivity these effects should be taken into consideration. The analysis incorporates a linkage between air pollution and health effects into a general equilibrium model for Sweden through a theoretical consistent framework. Results from recent Swedish concentration-response and contingent valuation studies are used to model direct disutility and indirect health effects that negatively affects the productivity of labour. The costs of feedback effects on health and productivity are compared in three different scenarios for attaining the Swedish carbon dioxide target with alternative projected emission levels in the baseline scenario as well as alternative harmful emission levels. Results show that not including feedback effects could mean overstating the costs of climate policy. The magnitude of these effects are, however, very sensitive to projected emission levels and to the judgement of harmful emission levels.

Suggested Citation

  • Östblom, Göran & Samakovlis, Eva, 2004. "Costs of Climate Policy when Pollution Affects Health and Labour Productivity. A general Equilibrium Analysis Applied to Sweden," Working Papers 93, National Institute of Economic Research.
  • Handle: RePEc:hhs:nierwp:0093
    as

    Download full text from publisher

    File URL: http://www.konj.se/download/18.4ee9b512150ed5e093b906fe/1447246075392/Working-Paper-93-Costs-of-Climate-Policy-when-Pollution-Affects-Health-and-Labour-Productivity.-A-General-Equilibrium-Analysis-Applied-to-Sweden.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jennifer Chung–I Li, 2002. "Including the Feedback of Local Health Improvement in Assessing Costs and Benefits of GHG Reduction," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 14(3), pages 282-304, November.
    2. Robert Ayres & Jörg Walter, 1991. "The greenhouse effect: Damages, costs and abatement," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 1(3), pages 237-270, September.
    3. Martin L. Weitzman, 1976. "On the Welfare Significance of National Product in a Dynamic Economy," The Quarterly Journal of Economics, Oxford University Press, vol. 90(1), pages 156-162.
    4. Williams, Roberton III, 2002. "Environmental Tax Interactions when Pollution Affects Health or Productivity," Journal of Environmental Economics and Management, Elsevier, vol. 44(2), pages 261-270, September.
    5. Ståle Navrud, 2001. "Valuing Health Impacts from Air Pollution in Europe," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 20(4), pages 305-329, December.
    6. Burtraw, Dallas & Krupnick, Alan & Palmer, Karen & Paul, Anthony & Toman, Michael & Bloyd, Cary, 2003. "Ancillary benefits of reduced air pollution in the US from moderate greenhouse gas mitigation policies in the electricity sector," Journal of Environmental Economics and Management, Elsevier, vol. 45(3), pages 650-673, May.
    7. Samakovlis, Eva & Huhtala, Anni & Bellander, Tom & Svartengren, Magnus, 2004. "Air Quality and Morbidity: Concentration-response Relationships for Sweden," Working Papers 87, National Institute of Economic Research.
    8. Tolley, George & Kenkel, Donald & Fabian, Robert (ed.), 1994. "Valuing Health for Policy," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226807133, June.
    9. Nilsson, Charlotta & Huhtala, Anni, 2000. "Is CO2 Trading Always Beneficial? A CGE-Model Analysis on Secondary Environmental Benefits," Working Papers 75, National Institute of Economic Research.
    10. Bruvoll, Annegrete & Glomsrod, Solveig & Vennemo, Haakon, 1999. "Environmental drag: evidence from Norway," Ecological Economics, Elsevier, vol. 30(2), pages 235-249, August.
    11. Inge Mayeres & Denise Van Regemorter, 2003. "Modelling the health related benefits of environmental policies - a CGE analysis for the eu countries with gem-e3," Energy, Transport and Environment Working Papers Series ete0310, KU Leuven, Department of Economics - Research Group Energy, Transport and Environment.
    12. Huhtala, Anni & Samakovlis, Eva, 2003. "Green Accounting, Air Pollution and Health," Working Papers 82, National Institute of Economic Research.
    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. Lepori, Gabriele M., 2016. "Air pollution and stock returns: Evidence from a natural experiment," Journal of Empirical Finance, Elsevier, vol. 35(C), pages 25-42.
    2. Krook Riekkola, Anna & Ahlgren, Erik O. & Söderholm, Patrik, 2011. "Ancillary benefits of climate policy in a small open economy: The case of Sweden," Energy Policy, Elsevier, vol. 39(9), pages 4985-4998, September.
    3. Östblom, Göran & Berg, Charlotte, 2006. "The EMEC model: Version 2.0," Working Papers 96, National Institute of Economic Research.
    4. Lott, Melissa C. & Pye, Steve & Dodds, Paul E., 2017. "Quantifying the co-impacts of energy sector decarbonisation on outdoor air pollution in the United Kingdom," Energy Policy, Elsevier, vol. 101(C), pages 42-51.

    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. Mohajan, Haradhan, 2011. "Valuing health impacts of the workers in Bangladesh due to air pollution," MPRA Paper 50697, University Library of Munich, Germany, revised 13 May 2011.
    2. Huhtala, Anni & Samakovlis, Eva, 2003. "Green Accounting, Air Pollution and Health," Working Papers 82, National Institute of Economic Research.
    3. Kyriakopoulou , Efthymia & Xepapadeas, Anastasios, 2014. "Atmospheric Pollution in Rapidly Growing Urban Centers: Spatial Policies and Land Use Patterns," Working Papers in Economics 601, University of Gothenburg, Department of Economics.
    4. Krook Riekkola, Anna & Ahlgren, Erik O. & Söderholm, Patrik, 2011. "Ancillary benefits of climate policy in a small open economy: The case of Sweden," Energy Policy, Elsevier, vol. 39(9), pages 4985-4998, September.
    5. Anne Rozan, 2004. "Benefit Transfer: A Comparison of WTP for Air Quality between France and Germany," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 29(3), pages 295-306, November.
    6. Inge Mayeres & Denise Van Regemorter, 2008. "Modelling the Health Related Benefits of Environmental Policies and Their Feedback Effects: A CGE Analysis for the EU Countries with GEM-E3," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 135-150.
    7. Samakovlis, Eva & Huhtala, Anni & Bellander, Tom & Svartengren, Magnus, 2005. "Valuing health effects of air pollution--Focus on concentration-response functions," Journal of Urban Economics, Elsevier, vol. 58(2), pages 230-249, September.
    8. Kyriaki Remoundou & Phoebe Koundouri, 2009. "Environmental Effects on Public Health: An Economic Perspective," IJERPH, MDPI, vol. 6(8), pages 1-19, July.
    9. Pittel, Karen & Rübbelke, Dirk T.G., 2008. "Climate policy and ancillary benefits: A survey and integration into the modelling of international negotiations on climate change," Ecological Economics, Elsevier, vol. 68(1-2), pages 210-220, December.
    10. Markandya Anil & Rübbelke Dirk T.G., 2004. "Ancillary Benefits of Climate Policy / Sekundäre Nutzen der Klimapolitik," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 224(4), pages 488-503, August.
    11. Kyriakopoulou, Efthymia & Xepapadeas, Anastasios, 2013. "Spatial Policies and Land Use Patterns: Optimal and market allocations," Working Papers in Economics 566, University of Gothenburg, Department of Economics.
    12. Milan Ščasný & Anna Alberini, 2012. "Valuation of Mortality Risk Attributable to Climate Change: Investigating the Effect of Survey Administration Modes on a VSL," IJERPH, MDPI, vol. 9(12), pages 1-22, December.
    13. Ouoba, Youmanli, 2017. "Economic sustainability of the gold mining industry in Burkina Faso," Resources Policy, Elsevier, vol. 51(C), pages 194-203.
    14. Nam, Kyung-Min & Selin, Noelle E. & Reilly, John M. & Paltsev, Sergey, 2010. "Measuring welfare loss caused by air pollution in Europe: A CGE analysis," Energy Policy, Elsevier, vol. 38(9), pages 5059-5071, September.
    15. María Xosé Vázquez & Jorge E. Araña & Carmelo J. León, 2006. "Economic evaluation of health effects with preference imprecision," Health Economics, John Wiley & Sons, Ltd., vol. 15(4), pages 403-417, April.
    16. Raymond Y.T. Yeung & Richard D. Smith & Sarah M. McGhee, 2003. "Willingness to pay and size of health benefit: an integrated model to test for ‘sensitivity to scale’," Health Economics, John Wiley & Sons, Ltd., vol. 12(9), pages 791-796, September.
    17. Tol, Richard S.J., 2013. "Targets for global climate policy: An overview," Journal of Economic Dynamics and Control, Elsevier, vol. 37(5), pages 911-928.
    18. Göran Östblom & Eva Samakovlis, 2007. "Linking health and productivity impacts to climate policy costs: a general equilibrium analysis," Climate Policy, Taylor & Francis Journals, vol. 7(5), pages 379-391, September.
    19. Kyriakopoulou, Efthymia & Xepapadeas, Anastasios, 2013. "Environmental policy, first nature advantage and the emergence of economic clusters," Regional Science and Urban Economics, Elsevier, vol. 43(1), pages 101-116.
    20. Samakovlis, Eva, 2008. "How are Green National Accounts Produced in Practice?," Working Papers 105, National Institute of Economic Research.

    More about this item

    Keywords

    air pollution; ancillary benefits; climate policy; general equilibrium; health;
    All these keywords.

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • I10 - Health, Education, and Welfare - - Health - - - General
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

    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:hhs:nierwp:0093. 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: Sarah Hegardt Grant (email available below). General contact details of provider: https://edirc.repec.org/data/kongvse.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.