Air pollution, public health, and inflation

Since the passage of the environmental legislation in the early 1970's, critics have attacked these laws as being unnecessary and for contributing significantly to the problem of inflation in the United States. This paper is an attempt to put the inflationary costs of air pollution into perspective by considering them in light of the cost, especially to public health, of not proceeding with pollution control. There is now a great deal of evidence that the concentration of certain pollutants in the air can contribute significantly to the incidence of respiratory and cardiovascular diseases and to certain forms of cancer. On the basis of the results of a recent study of the impacts of pollution control on inflation, the annual reduction in purchasing power of the average family is calculated to be $31 per family. To determine the average costs of air pollution on human health, research by Lave and Seskin is utilized. First, the implications of air pollution for mortality and morbidity rates are determined. Then, the reduction in direct health costs and indirect costs (lost productivity of workers) as a result of pollution abatement is estimated. These annual health costs from pollution total approximately $250 per family. The results suggest that the inflationary costs of air pollution control are more than offset by the damages to public health from unabated air pollution.