The links between outdoor air pollution and economic growth

This chapter first presents the main approaches used in the literature to assess the costs of inaction or benefits of action for air pollution. It then introduces the methodology used in this report to study the economic consequences of outdoor air pollution, using a general equilibrium model for market impacts and results of direct valuation studies for non-market impacts. The chapter also presents an overview of the main impacts of outdoor air pollution, including those related to human health and the environment. It then highlights which impacts and economic consequences are quantified in this report. The chapter ends with a description of possible policy approaches to address outdoor air pollution.