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  • Polluted air costs China $112 billion

    - MIT researchers estimated the economic impact of polluted air in China. Due to absence at work and increased health care costs, workers sick due to air pollution cost the country’s economy $112 billion alone in 2005.

    A recent MIT research indicates that the economic damage from ozone and polluted air has risen sharply in China. In 1975, these costs amounted to about $22 billion (€16,8 billion) due to lost labor and increased health care costs. By 2005, this number rose to $112 billion (€85,7 billion). Ozone and particulates are known to cause cardiovascular and respiratory diseases.

    Urbanization, population growth, rising incomes

    Even though the Chinese government set up a number of measures to counter air pollution, "the results clearly indicate that ozone and particulate matter have substantially impacted the Chinese economy over the past 30 years," commented Noelle Selin from the MIT.

    Two phenomena can explain these results. On the one hand, urbanization and population growth led to an increasing number being exposed to air pollution. On the other hand, rising incomes accompanying China's economic boom increased the damage associated with lost labor.