Quantifying the Health and Wealth Benefits of Reducing Point Source Pollution: The Case of the Sugar Industry in Pakistan

Sanaullah Panezai,Muhammad Rafiq,Alam Zeb,Ayat Ullah,Shahab E Saqib,Ubaid Ali

doi:10.3390/su132313252

Abstract

Air pollution is among the major causes of death and disease all around the globe. The prime impact of ambient air pollution is on the lungs through the respiratory system. This study aims to estimate the health cost due to air pollution from a Sugar Mill in the Mardan district of Khyber Pakhtunkhwa, Pakistan. To determine the impact of pollution on respiratory illness, primary data were collected from 1141 individuals from 200 households living within a 3 km radius of the mill. The Household Production Method was used to drive the reduced-form Dose–Response Function and the Mitigation Cost Function for assessing the impact of pollution on health and then estimating the monetary cost associated with mitigating such illnesses. The results indicate that about 60% of the respondents living in the surrounding area of the mill suffered from different respiratory illnesses. The study estimates that by reducing the suspended particulate matter (SPM) level by 50%, the expected annual welfare gains to an individual living within a 3 km radius of the mill are US $20.21. The whole community residing within a 3 km radius of the mill will enjoy an estimated welfare gain of PKR. 70.67 million (US $0.511 million). If the pollution standard limits prescribed by the World Health Organization are followed, the expected monetary benefits to all the individuals living within a 3 km radius of the mill are PKR. 114.48 million (US $0.27 million) annually.

Highlights

The results show that the sugar industry caused air pollution in the study area that further led to acute respiratory illness (ARI), lower respiratory illnesses (LRI), and upper respiratory illnesses (URI)
The coefficients for ARI and URI are significant at the 5% level, while the coefficient LRI is significant at the 10% level
A reduction in the suspended particulate matter (SPM) level contributes to positive social gains

Summary

Introduction

Air pollution is the main reason for the health problems all around the globe, but developing economies are more susceptible to this risk [1]. Air pollution is a complex mixture of gaseous and particulate components, each of which has detrimental effects on cardiovascular and respiratory systems [2]. Individuals in low- and middle-income countries (LMICs) have different exposures, and risk factors, for the development of respiratory diseases as compared with those in higher-income countries [3]. Increased prenatal household air pollution exposure is associated with impaired infant lung function [4]. More than 4 million people die due to diseases from environmental

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