Air pollution has powerful effects on the economy. It reduces GDP, and costs us even more because of health care expenses and premature deaths.
Reduced GDP comes from health/absenteeism or decreased productivity. When there’s air pollution, people are sick and miss school or work. When there’s air pollution, our brains don’t work as well, and there is decreased worker productivity and decreased student learning even when people are at their work or school. Everyone is affected, but outdoor workers in construction and agriculture are especially affected. Air pollution directly affects crops, reducing farmers’ crop yields.
A report from the Organisation for Economic Co-operation and Development (OECD) shows that every 1µg/m3 increase fine particle pollution (PM2.5) levels causes a 0.8% reduction in GDP that same year. They estimate that every amount spent to reduce PM2.5 yields a benefit to GDP about 200 times greater. As an example they provide, it would cost EUR 1.25 billion (Euros) to reduce air pollution by 25%. But reducing air pollution by just 10% would increase GDP by EUR 100-200 billion.
Our fact sheet lists the health and economic costs of air pollution:
* Air pollution costs the U.S. $1900 per person, per year.
* Asthma (which is exacerbated by air pollution) cost the U.S. $32 billion in 2013. This was because of missed work or school, or premature death.
* The Natural Resources Defense Council (NRDC) estimates that air pollution costs the U.S. over $840 billion per year, due to increased health costs and people dying too early (an average of 20 years too early).
* Corn yields increase by 1.1%, or 2 billion bushels of corn, when a coal plant within 125 miles closes down.
* Ozone can cause $3-6 billion in crop losses in a year.
Please see our fact sheet for details and a complete list of references.
Any federal plans to reduce air pollution will improve health, reduce health costs, and actually increase GDP by as much as 200 times what we spend. It does not cost too much to reduce air pollution, it actually improves the economy.
09/30/2021
