Human Health Impacts of PM2.5 and NOx Transport Air Pollution in Belgium

Abstract

This paper seeks to calculate marginal external costs from human health impacts of transport air pollution. We focus on PM2.5 and NO x emissions in Belgium. Our analysis builds upon the widely used impact pathway approach. The great novelty compared to previous work is that both future emissions and background concentrations are modelled now, taking into account different destinations of a tonne of emitted pollutant now versus in the future. Moreover, the model allows for demographic evolution. We find similar results from two separate exercises: one for Belgian and one for Flemish PM2.5 and NO x emissions. External costs are the result of damages from a particular economic activity, not accounted for in market prices. As long as these costs are not internalized (i.e., included in prices), there will be a loss of welfare. The external cost level is a relevant indicator for society as it indicates which policy measures deserve priority. In this paper, we only discuss marginal external cost (MEC) numbers. The result is a cost in EUR/tonne emission.