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15th April | Air Science Policy (ASP),
Dublin | Ton Manders
1
The economics of air
quality and
associated policy
responses
15th April | Air Science Policy (ASP),
Dublin | Ton Manders
2
Content
OECD Environmental Outlook
to 2050
Co-benefits
Costs and benefits
15th April | Air Science Policy (ASP), Dublin | Ton Manders3
Urban air pollution to become top by 2050
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0
Particulate
Matter
Ground-level
ozone
Unsafe Water
Supply and…
Indoor Air
Pollution
Malaria
Deaths (millions of people)
2010
2030
2050
Global premature deaths from
selected environmental risks: Baseline, 2010 to 2050
Urban air pollution worse than WHO guidelines
15th April | Air Science Policy (ASP), Dublin | Ton Manders4
0 20 40 60 80 100 120 140 160 180 200 220
OECD
Brazil
Russia
India
Indonesia
China
Africa
South…
μg/m3
2010
2030
2050
WHO Air Quality Guideline
20
PM10 concentration in major cities: Baseline, 2010-2050
Premature deaths (PM) more than double
15th April | Air Science Policy (ASP), Dublin | Ton Manders5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2000 2010 2020 2030 2040 2050
Deaths(millionsofpeople)
OECD BRIICS RoW
Premature deaths worldwide from exposure to PM: Baseline
OECD high premature death rates from ground-level ozone
15th April | Air Science Policy (ASP), Dublin | Ton Manders6
0
20
40
60
80
100
120
140
OECD India South +SE Asia Other countries
Deathspermillioninhabitants
2010 2030 2050
Premature deaths linked to ground-level ozone worldwide: Baseline
Number of deaths per million inhabitants
Co-benefits of Air Pollution Policy
 Air pollution policy depends on end-of-pipe controls (< 50%)
 Required emission reduction will come from changes in the
use of energy (>50%)
– efficiency improvements
– fuel switching
– other structural changes in the economy.
 Greenhouse gas emissions decrease, which renders climate
change policies less costly.
15th April | Air Science Policy (ASP), Dublin | Ton Manders7
15th April | Air Science Policy (ASP), Dublin | Ton Manders8
Costs and benefits - general
 Methodology
– Discounting
– Valuation (VOLY)
– Scope
 Costs
– Agriculture (NH3, manure)
– Transport (inland shipping), consumers
– Manufacturing, refineries
 Benefits
– Health (premature deaths)
– Nature
– Economic
15th April | Air Science Policy (ASP), Dublin | Ton Manders9
Costs and benefits - Netherlands
15th April | Air Science Policy (ASP), Dublin | Ton Manders10
Nitrogen dioxide (NO2), 2030
11
Health impacts: years of life lost, 2030
12
Sea-based versus land-based air policies:
cost and benefits and cost-effectiveness compared
13
Good is not alway best - optimal policy
15th April | Air Science Policy (ASP), Dublin | Ton Manders14
Take away
 Air quality/pollution is a policy topic of sustained importance
globally into the future
 Air quality/pollution policies can carry high benefits and
reasonably low costs
 There are however, many complexities and considerations in
terms of weighing up the costs and benefits of actions in the
context of broader policy decisions
15th April | Air Science Policy (ASP), Dublin | Ton Manders15
References
 OECD (2012), OECD Environmental Outlook to 2050, OECD
 PBL (2012), Air Pollution Policy in Europe: Quantifying the
Interaction with Greenhouse Gases and Climate Change
Policies, PBL Working Paper 7 / CPB Discussion Paper 220
 PBL (2012), Assessment of the environmental impacts and
health benefits of a nitrogen emission control area in the
North Sea, PBL Policy S
 ton.manders@pbl.nl
15th April | Air Science Policy (ASP), Dublin | Ton Manders16

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Air Quality Policy Costs and Benefits

  • 1. 15th April | Air Science Policy (ASP), Dublin | Ton Manders 1 The economics of air quality and associated policy responses
  • 2. 15th April | Air Science Policy (ASP), Dublin | Ton Manders 2 Content OECD Environmental Outlook to 2050 Co-benefits Costs and benefits
  • 3. 15th April | Air Science Policy (ASP), Dublin | Ton Manders3 Urban air pollution to become top by 2050 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 Particulate Matter Ground-level ozone Unsafe Water Supply and… Indoor Air Pollution Malaria Deaths (millions of people) 2010 2030 2050 Global premature deaths from selected environmental risks: Baseline, 2010 to 2050
  • 4. Urban air pollution worse than WHO guidelines 15th April | Air Science Policy (ASP), Dublin | Ton Manders4 0 20 40 60 80 100 120 140 160 180 200 220 OECD Brazil Russia India Indonesia China Africa South… μg/m3 2010 2030 2050 WHO Air Quality Guideline 20 PM10 concentration in major cities: Baseline, 2010-2050
  • 5. Premature deaths (PM) more than double 15th April | Air Science Policy (ASP), Dublin | Ton Manders5 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 2000 2010 2020 2030 2040 2050 Deaths(millionsofpeople) OECD BRIICS RoW Premature deaths worldwide from exposure to PM: Baseline
  • 6. OECD high premature death rates from ground-level ozone 15th April | Air Science Policy (ASP), Dublin | Ton Manders6 0 20 40 60 80 100 120 140 OECD India South +SE Asia Other countries Deathspermillioninhabitants 2010 2030 2050 Premature deaths linked to ground-level ozone worldwide: Baseline Number of deaths per million inhabitants
  • 7. Co-benefits of Air Pollution Policy  Air pollution policy depends on end-of-pipe controls (< 50%)  Required emission reduction will come from changes in the use of energy (>50%) – efficiency improvements – fuel switching – other structural changes in the economy.  Greenhouse gas emissions decrease, which renders climate change policies less costly. 15th April | Air Science Policy (ASP), Dublin | Ton Manders7
  • 8. 15th April | Air Science Policy (ASP), Dublin | Ton Manders8
  • 9. Costs and benefits - general  Methodology – Discounting – Valuation (VOLY) – Scope  Costs – Agriculture (NH3, manure) – Transport (inland shipping), consumers – Manufacturing, refineries  Benefits – Health (premature deaths) – Nature – Economic 15th April | Air Science Policy (ASP), Dublin | Ton Manders9
  • 10. Costs and benefits - Netherlands 15th April | Air Science Policy (ASP), Dublin | Ton Manders10
  • 12. Health impacts: years of life lost, 2030 12
  • 13. Sea-based versus land-based air policies: cost and benefits and cost-effectiveness compared 13
  • 14. Good is not alway best - optimal policy 15th April | Air Science Policy (ASP), Dublin | Ton Manders14
  • 15. Take away  Air quality/pollution is a policy topic of sustained importance globally into the future  Air quality/pollution policies can carry high benefits and reasonably low costs  There are however, many complexities and considerations in terms of weighing up the costs and benefits of actions in the context of broader policy decisions 15th April | Air Science Policy (ASP), Dublin | Ton Manders15
  • 16. References  OECD (2012), OECD Environmental Outlook to 2050, OECD  PBL (2012), Air Pollution Policy in Europe: Quantifying the Interaction with Greenhouse Gases and Climate Change Policies, PBL Working Paper 7 / CPB Discussion Paper 220  PBL (2012), Assessment of the environmental impacts and health benefits of a nitrogen emission control area in the North Sea, PBL Policy S  ton.manders@pbl.nl 15th April | Air Science Policy (ASP), Dublin | Ton Manders16