Economic Effects of Air Pollution

Air pollution is a mix of ozone, nitrogen oxide, carbon monoxide, volatile organic compounds (VOCs), particulate matter, sulfur dioxide, lead and mercury. Pollution is caused by transportation emissions, electricity creation, other home fuel usage and the production of the goods we purchase. Air pollution affects your health, agricultural crops, corporate strategies and even tourism.

Agriculture

• High concentrations of air pollution reduce crop yields. Many crops are very sensitive to air pollution and major production regions that pour pollution into the air significantly affect the amount of crops that are produced. This affects the economic status of both producers and consumers of food products. The University of California states that the reduction of 0.004 parts per million particles of ozone added to the air saves producers and consumers $35.7 million on a group of 27 affected crops. Having ozone levels at 0.008 ppm reduces the already slim profit margin for farmers and producers by an additional 11 percent.

Health

• The health cost of particulate matter exposure in Metro Manila, Baguio City, Cebu City and Davao City is over $430 million, from a study done in 2001 by the World Bank. The study also found that 2,000 individuals die early and 9,000 suffer from bronchitis, costing $260 million alone. Add the 51 million respiratory cases in Metro Manila, and you have spent another $170 million. Pollution also irritates eyes, affects breathing and sinuses, damages lungs, reduces the oxygenation of blood, causes cancer, lowers immunity, causes brain and nervous system damage, creates digestive problems and harms kidneys and liver. The Leonardo Academy restates the Healthy People 2000 report, which shows that air pollution exposure cost up to $50 billion in 2000.

Production

• Government regulation requiring companies to produce more energy-efficient products have created growth and research in energy that would have gone under-invested. As world energy increases, the need for more energy-efficient appliances and electronics grows. The Department of Energy estimates that energy consumption will grow 47 percent between 2005 and 2025. Providing more energy-efficient products reduces energy consumption, lowering household energy bills and these corporate investments have created new product lines and new avenues of revenue.

Tourism and Logging

• The Lewis and Clark College of Arts and Sciences explored the Columbia River Gorge to determine the effect air pollution has on tourism. Air pollution impairs visibility in 95 of 100 days during the year and is discouraging to tourists who come to see the spectacular scenery in the gorge. The 2 million visitors per year are less inclined to return to the gorge if they cannot take in the scenery, which significantly impacts the 4,030 people employed at the gorge, according to Lewis and Clark College. The gorge is also a valuable logging location and the acid rain produced from air pollution harms tree growth and lumber sales because it is damaged through acidification from excess nitrogen. Agriculture sales from the gorge were $300 million in 2002, but will see a decline if pollution rises.