The Economic Consequences of Outdoor Air Pollution

This chapter presents the methodology used in this report to analyse the economic consequences of outdoor air pollution. The methodology is based on the impact pathway approach, which requires multiple steps, from creating projections of air pollutant emissions, to calculating concentrations of key pollutants, calculating the biophysical impacts on health and crop yields, and calculating the economic costs with the ENV-Linkages model for market impacts and with results of direct valuation studies for non-market impacts. For each step the modelling framework and economic techniques used are explained.