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Air Quality and Cement Production: Examining the Implications of Point Source Pollution in Sri Lanka

  • Cyril Bogahawatte
  • Janaranjana Herath
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    Suspended particulate matter (SPM), dust, fumes and gases from cement production can result in a range of health effects to households living around factories. This study estimates the health costs associated with air pollution from a cement factory in the district of Puttalam in Sri Lanka. The study uses field data collected from 500 households living within a 3 km radius of the factory and measures seasonal air pollution to estimate dose-response functions and mitigation cost functions for different respiratory illnesses. The results indicate that the incidence of respiratory illness is about 14% amongst individuals who live in the vicinity of the cement factory. The study estimates that the expected annual welfare gain by reducing the SPM level by 50% is SLR 699 (US$ 7) per representative individual, while the annual welfare gain to all people living in the vicinity of the factory is SLR 2.96 million (US $ 29,600).

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    Paper provided by The South Asian Network for Development and Environmental Economics in its series Working papers with number 1.

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    Handle: RePEc:snd:wpaper:1
    Contact details of provider: Postal: South Asian Network for Development and Environmental Economics PO Box: 8975, EPC: 1056 Kathmandu, Nepal

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    1. Martin Linde-Rahr, 2005. "Differences in agricultural returns: an empirical test of efficiency in factor input allocation using Vietnamese data," Agricultural Economics, International Association of Agricultural Economists, vol. 32(1), pages 35-45, 01.
    2. Wang, Hua & Lall, Somik, 1999. "Valuing water for Chinese industries : a marginal productivity assessment," Policy Research Working Paper Series 2236, The World Bank.
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