We evaluate the approach currently used by the World Bank to measure exposure to outdoor air pollution and associated economic costs, as reported in the World Development Indicators database. We recommend that current exposure estimates, based on an econometric model, be replaced by estimates used in computing the Global Burden of Disease (GBD). The GBD combines satellite data with chemical transport models to provide global estimates of fine particle exposure. We recommend that the World Bank also use estimates of disability-adjusted life years (DALYs) lost due to outdoor air pollution produced by the GBD. DALYs should continue to be monetized using the value of a statistical life year, which is currently transferred from a US value of a statistical life (VSL) using an income elasticity of one. Going forward, it would be desirable to allow the income elasticity of the VSL to vary with income and to revisit the choice of baseline VSL.
Common Resources — Sep 12, 2014
How Should the World Bank Estimate Air Pollution Damages?
One of the indicators the World Bank uses to measure the sustainability of a country’s growth is adjusted net savings (ANS), which includes an esti...
Common Resources — Mar 21, 2023
The Trade-Off between Costs and Emissions for the Hydrogen Tax Credit
Deploying hydrogen technologies quickly can speed up decarbonization and reduce associated costs, but also could increase emissions in the short run. This trade-off depends on how the US Department of the Treasury will implement the hydrogen tax credit.
On the Issues — Feb 24, 2023
On the Issues: Inflation Reduction Act Insights, Housing Markets, and More
A biweekly newsletter connecting global current events, pressing climate and energy policy news, and economics research from RFF scholars. This week: Inflation Reduction Act insights, housing markets, and more