Study concludes air pollution now the deadliest form of pollution and the fourth leading risk factor for premature deaths worldwide
Premature deaths caused by poor air quality cost the global economy around $225bn in lost labour income during 2013, according to a major new economic study published today by the World Bank and the Institute for Health Metrics and Evaluation (IHME).
The joint study, entitled The Cost of Air Pollution: Strengthening the economic case for action, details how an estimated 5.5 million lives were lost in 2013 to diseases associated with outdoor and household air pollution.
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By focusing on air pollution-related deaths of working age men and women the study was able to calculate the lost labour income that resulted from premature deaths. It found that annual labour income losses cost the equivalent of almost 1 per cent of GDP in South Asia, 0.25 per cent of GDP in East Asia and the Pacific, and 0.61 per cent of GDP in Saharan Africa, where air pollution impairs the earning potential of younger populations.
However, the report also noted that the bulk of air pollution-related deaths are among older people and children, arguing that when an analysis of ‘welfare losses' covering all air pollution-related deaths is undertaken the economic cost soars to $5tr worldwide in 2013.
In East and South Asia, where many cities face some of the worst levels of air pollution, welfare losses related to poor air quality were the equivalent of about 7.5 per cent of GDP, the report said.
"Air pollution is a challenge that threatens basic human welfare, damages natural and physical capital, and constrains economic growth," said Laura Tuck, vice president for sustainable development at the World Bank, in a statement. "We hope this study will translate the cost of premature deaths into an economic language that resonates with policy makers so that more resources will be devoted to improving air quality. By supporting healthier cities and investments in cleaner sources of energy, we can reduce dangerous emissions, slow climate change, and most importantly save lives."
Oliver Hayes, Friends of the Earth clean air campaigner, said it was depressing that a report was needed "to 'strengthen the business case for governments to act' when the terrible human costs of air pollution should surely be sufficient alone".
"Nevertheless, the study shines a useful light on some eye-watering economic and social impacts of dirty air and makes clear what's fairly obvious: polluted places are less productive, see fewer tourists, and put off potential workers," he added.
The report comes just a day after another major study from the World Bank detailed how industry could play a critical role in tackling climate change.
The report, entitled A Greener Path to Competitiveness: Policies for Climate Action in Industries and Products, was undertaken in partnership with CLASP and the Carbon Trust. It argues there is growing evidence that multiple industries can deliver deep emissions reductions while remaining competitive, thanks to new clean technologies and emerging business models.
"The unprecedented task presented at COP 21 in Paris to decarbonize globally introduces challenges but also enormous opportunities for industries as they seek a greener path to production while remaining globally competitive," said Cecile Fruman, director of the Trade & Competitiveness Global Practice at the World Bank Group. "Now is the time for companies and countries to act."
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