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

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.