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The Role of Air Pollution and Income in Public Health in OECD Countries

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  2. Economics, Finance, Business & Management
  3. Applied Economics Quarterly
  4. Vol. 67, Issue 3
  5. pp. 225–256

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Massidda, C. The Role of Air Pollution and Income in Public Health in OECD Countries. Applied Economics Quarterly, 67(3), 225-256. https://doi.org/10.3790/aeq.67.3.225
Massidda, Carla "The Role of Air Pollution and Income in Public Health in OECD Countries" Applied Economics Quarterly 67.3, 2021, 225-256. https://doi.org/10.3790/aeq.67.3.225
Massidda, Carla (2021): The Role of Air Pollution and Income in Public Health in OECD Countries, in: Applied Economics Quarterly, vol. 67, iss. 3, 225-256, [online] https://doi.org/10.3790/aeq.67.3.225
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The Role of Air Pollution and Income in Public Health in OECD Countries

Massidda, Carla

Applied Economics Quarterly, Vol. 67 (2021), Iss. 3 : pp. 225–256

1 Citations (CrossRef)

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Article Details

Publisher Name
Duncker & Humblot
DOI
https://doi.org/10.3790/aeq.67.3.225
Language
German
Pages
32
Keywords

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Author Details

Carla Massidda, University of Cagliari, Department of Economics and Business Sciences, Viale Sant’Ignazio 17, 09123, Cagliari, Sardinia, Italy.

Cited By

  1. Exploring the causal relationships between health, pollution, and growth: Evidence from OECD countries

    Massidda, Carla

    RIVISTA DI STUDI SULLA SOSTENIBILITA', Vol. 13 (2023), Iss. 1 P.13

    https://doi.org/10.3280/RISS2023-001002 [Citations: 0]

References

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  3. Babatola, S. S. (2018): “Global Burden of Diseases Attributable to Air Pollution”, Journal of Public Health in Africa 9, 162–166.  Google Scholar
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  6. Coker, E./Cavalli, L./Fabrizi, E./Guastella, G./Lippo, E./Parisi, M. L./Pontarollo, N./Rizzati, M./Varacca, A./Vergalli, S. (2020): “The Effects of Air Pollution on COVID-19 Related Mortality in Northern Italy”, Nota di Lavoro 6.2020, Milano, Italy: Fondazione Eni Enrico Mattei.  Google Scholar
  7. Cropper, M. L. (1981): “Measuring the benefits from reduced morbidity”, American Economic Review 71, 235–240.  Google Scholar
  8. Di, Q./Wang, Y./Zanobetti, A./Wang, Y./Koutrakis, P./Choirat, C./Dominici, F./Schwartz, D. (2017): “Air Pollution and Mortality in the Medicare Population”, New England Journal of Medicine 376, 2513–2522.  Google Scholar
  9. Dockery, D. W./Pope, C. A./Xu, X./Spengler, J. D./Ware, J. H./Fay, M. E./Speizer, F. E. (1993): “An association between air pollution and mortality in six US cities”, New England Journal of Medicine 329, 1753–1759.  Google Scholar
  10. Fogel, R. W. (1997): “Economic and social structure for an ageing population”, Philosophical Transaction of the Royal Society London B. 352, 1905–1917.  Google Scholar
  11. Gerdtham, U. G./Jonsson, B. (1991): ‘Conversion factor instability in international comparisons of health care expenditure”, Journal of Health Economics 10, 227–234.  Google Scholar
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  13. Grossman, M. (1972): “On the concept of health capital and the demand for health”, Journal of Political Economy 80, 223–255.  Google Scholar
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  20. Miao, W./Huang, X./Song, Y. (2017): “An economic assessment of the health effects and crop yield losses caused by air pollution in mainland China”, Journal of Environmental Science 56, 102–113.  Google Scholar
  21. Morand, O. F. (2005): “Economic growth, health, and longevity in the very long term: facts and mechanisms”, in: Lopez-Casasnovas, G./Rivera, B./Currais, L. (Eds.). Health and Economic Growth: Findings and Policy Implications, MIT Press, Cambridge, Massachusetts, USA, 239–254.  Google Scholar
  22. OʼNeill, M. S./McMichael, A. J./Schwartz, J./Wartenberg, D. (2007): “Poverty, environment, and health: the role of environmental epidemiology and environmental epidemiologists”, Epidemiology 18, 664–668.  Google Scholar
  23. Our World in Data (2022): website: https://ourworldindata.org/outdoor-air-pollution.  Google Scholar
  24. Pautrel, X. (2008): “Reconsidering the impact of the environment on long-run growth when pollution influences health and agents have a finite lifetime”, Environmental and Resource Economics 40, 37–52.  Google Scholar
  25. Pautrel, X. (2009): “Pollution and life expectancy: how environmental policy can promote growth”, Ecological Economics 68, 1040–1051.  Google Scholar
  26. Pope, C. A./Burnett, R. T./Thun, M. J./Calle, E. E./Krewski, D./Ito, K./Thurston, G. D. (2002): “Lung Cancer, Cardiopulmonary Mortality and Long-term Exposure to Fine Particulate Air Pollution”, Journal of the American Medical Association 287, 1132–1141.  Google Scholar
  27. Raaschou-Nielsen, O. and others (2013): “Air pollution and lung cancer incidence in 17 European cohorts: prospective analyses from the European Study of Cohorts for Air Pollution Effects (ESCAPE)”, Lancet Oncology 14, 813–22.  Google Scholar
  28. Ritchie, H./Rose, M. (2018): “Causes of Death”, online publication available from the website Our World in Data, https://www.ourworldindata.org/causes of death.  Google Scholar
  29. Samet, J. M./Dominici, M. D./Curriero, F. C./Coursac, I./Zeger, S. L. (2000): “Fine particulate air pollution and mortality in 20 U.S cities, 1987–1994”, New England Journal of Medicine 343, 1742–1749.  Google Scholar
  30. Shahiduzzaman, Md./Khorshed, A. (2017): “Trade-Off Between CO2 Emissions and Income: Is There any Evidence of an Environmental Kuznets Curve in Australia?” Applied Economics Quarterly 63, 211–231.  Google Scholar
  31. Stenberg, K./Axelson, H./Sheehan, P./Anderson, I./Gülmezoglu, A. M./Temmerman, M./Mason, E./Friedman, H. (2014): “Advancing social and economic development by investing in womenʼs and children’s health: a new global investment framework”, Lancet 383, 1333–1354.  Google Scholar
  32. Stern, D. J. (2017): “The environmental Kuznets curve after 25 years”, Journal of Bioeconomics 19, 7–28.  Google Scholar
  33. Stieb, D. M./Judek, S./Burnett, R. T. (2002): “Meta-Analysis of Time-Series Studies of Air Pollution and Mortality: Effects of Gases and Particles and the Influence of Cause of Death, Age, and Season”, Journal of the Air & Waste Management Association 52, 470–484.  Google Scholar
  34. Xie, Y./Dai, H./Dong, H./Hanaoka, T./Masui, T. (2016): “Economic impacts from PM2.5 pollution-related health effects in China: a provincial-level analysis”, Environmental Science and Technoloy 50, 4836–4843.  Google Scholar
  35. Yazdi, S. K./Khanalizadeh, B. (2017): “Air pollution, economic growth and health care expenditure”, Economic Research-Ekonomska Istraživanja 30, 1181–1190.  Google Scholar
  36. Abowd, J. M./Kramarz, F./Woodcock, S. (2008): “Econometric Analyses of Linked Employer – Employee Data”. In Mátyás, L./Sevestre, P. (Eds.). The Econometrics of Panel Data 46, 727–760, Springer Berlin Heidelberg.  Google Scholar
  37. Arceo, E./Hanna, R./Oliva, P. (2016): “Does the effect of pollution on infant mortality differ between developing and developed countries? Evidence from Mexico City”, Economic Journal 126, 257–280.  Google Scholar
  38. Babatola, S. S. (2018): “Global Burden of Diseases Attributable to Air Pollution”, Journal of Public Health in Africa 9, 162–166.  Google Scholar
  39. Bella, G./Massidda, C./Etzo, I. (2013): “A Panel Estimation of the Relationship between Income, Electric Power Consumption and CO2 Emissions”, Applied Economics Quarterly 59, 149–166.  Google Scholar
  40. Brock, W. A./Taylor, M. S. (2004): “Economic Growth and the Environment: A Review of Theory and Empirics”, NBER Working Paper 10854.  Google Scholar
  41. Coker, E./Cavalli, L./Fabrizi, E./Guastella, G./Lippo, E./Parisi, M. L./Pontarollo, N./Rizzati, M./Varacca, A./Vergalli, S. (2020): “The Effects of Air Pollution on COVID-19 Related Mortality in Northern Italy”, Nota di Lavoro 6.2020, Milano, Italy: Fondazione Eni Enrico Mattei.  Google Scholar
  42. Cropper, M. L. (1981): “Measuring the benefits from reduced morbidity”, American Economic Review 71, 235–240.  Google Scholar
  43. Di, Q./Wang, Y./Zanobetti, A./Wang, Y./Koutrakis, P./Choirat, C./Dominici, F./Schwartz, D. (2017): “Air Pollution and Mortality in the Medicare Population”, New England Journal of Medicine 376, 2513–2522.  Google Scholar
  44. Dockery, D. W./Pope, C. A./Xu, X./Spengler, J. D./Ware, J. H./Fay, M. E./Speizer, F. E. (1993): “An association between air pollution and mortality in six US cities”, New England Journal of Medicine 329, 1753–1759.  Google Scholar
  45. Fogel, R. W. (1997): “Economic and social structure for an ageing population”, Philosophical Transaction of the Royal Society London B. 352, 1905–1917.  Google Scholar
  46. Gerdtham, U. G./Jonsson, B. (1991): ‘Conversion factor instability in international comparisons of health care expenditure”, Journal of Health Economics 10, 227–234.  Google Scholar
  47. Gerking, S./Stanley, L. R. (1986): “An economic analysis of air pollution and health: the case of St. Louis”, Review of Economics and Statistics 68, 115–121.  Google Scholar
  48. Grossman, M. (1972): “On the concept of health capital and the demand for health”, Journal of Political Economy 80, 223–255.  Google Scholar
  49. Grossman, G. M./Krueger, A. B. (1995): “Economic growth and the environment. Economic growth and the environment”, Quarterly Journal of Economics 110, 353–377.  Google Scholar
  50. Jerrett, M./Eyles, J./Dufournaud, C./Birch, S. (2003): “Environmental influences on health care expenditures: An exploratory analysis from Ontario Canada”, Journal of Epidemiology and Community Health 57, 334–338.  Google Scholar
  51. Katrakilidis, C./Kyritsis, I./Patsika, V. (2016): “The dynamic linkages between economic growth, environmental quality and health in Greece”, Applied Economic Letters 23, 217–221.  Google Scholar
  52. Lu, Z. N./Chen, H./Hao, Y./Wang, J./Song, X./Mok, T. M. (2017): “The dynamic relationship between environmental pollution, economic development and public health: Evidence from China”, Journal of Cleaner Production 166, 134–147.  Google Scholar
  53. Matus, K./Nam, K. M./Selin, N. E./Lamsal, L. N./Reilly, J. M./Paltsev, S. (2012): “Health damages from air pollution in China”, Global Environmental Change 22, 55–66.  Google Scholar
  54. Mayer, D. (2001): “The long-term impact of health on economic growth in Latin America”, World Development 29, 1025–1033.  Google Scholar
  55. Miao, W./Huang, X./Song, Y. (2017): “An economic assessment of the health effects and crop yield losses caused by air pollution in mainland China”, Journal of Environmental Science 56, 102–113.  Google Scholar
  56. Morand, O. F. (2005): “Economic growth, health, and longevity in the very long term: facts and mechanisms”, in: Lopez-Casasnovas, G./Rivera, B./Currais, L. (Eds.). Health and Economic Growth: Findings and Policy Implications, MIT Press, Cambridge, Massachusetts, USA, 239–254.  Google Scholar
  57. OʼNeill, M. S./McMichael, A. J./Schwartz, J./Wartenberg, D. (2007): “Poverty, environment, and health: the role of environmental epidemiology and environmental epidemiologists”, Epidemiology 18, 664–668.  Google Scholar
  58. Our World in Data (2022): website: https://ourworldindata.org/outdoor-air-pollution.  Google Scholar
  59. Pautrel, X. (2008): “Reconsidering the impact of the environment on long-run growth when pollution influences health and agents have a finite lifetime”, Environmental and Resource Economics 40, 37–52.  Google Scholar
  60. Pautrel, X. (2009): “Pollution and life expectancy: how environmental policy can promote growth”, Ecological Economics 68, 1040–1051.  Google Scholar
  61. Pope, C. A./Burnett, R. T./Thun, M. J./Calle, E. E./Krewski, D./Ito, K./Thurston, G. D. (2002): “Lung Cancer, Cardiopulmonary Mortality and Long-term Exposure to Fine Particulate Air Pollution”, Journal of the American Medical Association 287, 1132–1141.  Google Scholar
  62. Raaschou-Nielsen, O. and others (2013): “Air pollution and lung cancer incidence in 17 European cohorts: prospective analyses from the European Study of Cohorts for Air Pollution Effects (ESCAPE)”, Lancet Oncology 14, 813–22.  Google Scholar
  63. Ritchie, H./Rose, M. (2018): “Causes of Death”, online publication available from the website Our World in Data, https://www.ourworldindata.org/causes of death.  Google Scholar
  64. Samet, J. M./Dominici, M. D./Curriero, F. C./Coursac, I./Zeger, S. L. (2000): “Fine particulate air pollution and mortality in 20 U.S cities, 1987–1994”, New England Journal of Medicine 343, 1742–1749.  Google Scholar
  65. Shahiduzzaman, Md./Khorshed, A. (2017): “Trade-Off Between CO2 Emissions and Income: Is There any Evidence of an Environmental Kuznets Curve in Australia?” Applied Economics Quarterly 63, 211–231.  Google Scholar
  66. Stenberg, K./Axelson, H./Sheehan, P./Anderson, I./Gülmezoglu, A. M./Temmerman, M./Mason, E./Friedman, H. (2014): “Advancing social and economic development by investing in womenʼs and children’s health: a new global investment framework”, Lancet 383, 1333–1354.  Google Scholar
  67. Stern, D. J. (2017): “The environmental Kuznets curve after 25 years”, Journal of Bioeconomics 19, 7–28.  Google Scholar
  68. Stieb, D. M./Judek, S./Burnett, R. T. (2002): “Meta-Analysis of Time-Series Studies of Air Pollution and Mortality: Effects of Gases and Particles and the Influence of Cause of Death, Age, and Season”, Journal of the Air & Waste Management Association 52, 470–484.  Google Scholar
  69. Xie, Y./Dai, H./Dong, H./Hanaoka, T./Masui, T. (2016): “Economic impacts from PM2.5 pollution-related health effects in China: a provincial-level analysis”, Environmental Science and Technoloy 50, 4836–4843.  Google Scholar
  70. Yazdi, S. K./Khanalizadeh, B. (2017): “Air pollution, economic growth and health care expenditure”, Economic Research-Ekonomska Istraživanja 30, 1181–1190.  Google Scholar

Abstract

This paper investigates the impact of particulate matter pollution and the level of development on mortality rates for a panel of 26 OECD countries during the 1990 to 2017 time span. First, our investigation involves the fixed effect estimation of a polynomial equation model where mortality rates represent the dependent variable. Then, to overcome potential endogeneity biases due to bilateral causality, we define a simultaneous equation model. Finally, we test whether different economic conditions affect the sensitiveness of mortality rates to pollution. The overall results show a positive impact of particulate matter on the number of deaths and a prevailing bidirectional negative relationship between particulate matter and per capita GDP. As far as the relationship between per capita GDP and mortality rates is concerned, results are less homogeneous across causes of mortality.

Table of Contents

Section Title Page Action Price
Carla Massidda: The Role of Air Pollution and Income in Public Health in OECD Countries 225
Abstract 225
1. Introduction 225
2. Literature 227
3. Research Strategy 231
3.1 Empirical Model 231
3.2 Dataset Description 235
4. Results 239
4.1 General Results 239
4.2 SEM Estimates 241
4.3 Results by Income Quartiles 244
5. Summary of the Main Findings and Policy Implications 246
References 247
Appendix 250

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