‘Air pollution impacts productivity. Mitigations generate economic gains’

Matthew Neidell teaches

health

policy and management at

Columbia University

. Speaking to Srijana Mitra Das at Times Evoke, Neidell outlines the economic costs of human exposure to

air pollution

:
What is the core of your research?

I look at the impacts of air pollution on human well-being. This includes both health out comes and non-health outcomes which aren’t typically studied for air pollution but are significant. There is an established link now between PM 2.5 and the respiratory and cardiovascular system as well as evidence that such exposure can affect the brain.

These effects impact our daily lives. If a farmer, for instance, is exposed to high levels of air pollution, it may not cause asthma exacerbation but it could lead to laboured breathing or changes in the heart rate which can impact the ability to work. Those thus exposed might feel more fatigue or a reduced ability to concentrate, affecting their work performance.

It’s been found that children in particular, when exposed to air pollution during sensitive periods in their lives, including the prenatal duration, are often affected in ways that become evident later. These include impacts on cognition which compromise their ability to perform well and advance in their education. This then shapes their future earnings and their human capital.

What are your findings on air pollution impacting worker productivity?
In our research, we began with

farm

workers and found that when air pollution increased, agricultural workers in California who were picking fruits and berries experienced a decrease in their productivity. We then studied a manufacturing plant in California, located in a building that wasn’t very well insulated.

We found higher levels of air pollution decreased manufacturing levels for workers in that plant. We then studied service sector workers, located in a call centre in China. We found a similar pattern there as well — increases in outdoor air pollution decreased call completions over the day. As mentioned, air pollution exposure impacts cognitive performance. Alongside, with more air pollution, we found that workers were taking more breaks. We think this was due to subtle effects on their respiratory and cardiovascular systems which made people get up, walk about more, etc.

Why do you say air pollution aggregates to sizable economic damages?

Most studies on air pollution impacts have focused on the very young or the elderly. But our research has found its effects on working people in their 20s, 30s, 40s and 50s. These effects can be sizable since no one seemed exempt from them. Leading to reduced worker productivity, these effects add up to large economic losses.

We took our estimates on the link between pollution and workers in the service sector and extrapolated these to Los Angeles, which has poor air quality. Our research here explored whether reducing

LA

’s air pollution would translate into higher worker productivity. We valued this at the going wage in the service sector — the value translated to millions of dollars which were being lost. In India, which has much greater air pollution levels, the economic damages are likely to be much higher.

We took our estimates on the link between pollution and workers in the service sector and extrapolated these to Los Angeles, which has poor air quality. Our research here explored whether reducing LA’s air pollution would translate into higher worker productivity. We valued this at the going wage in the service sector — the value translated to millions of dollars which were being lost. In India, which has much greater air pollution levels, the economic damages are likely to be much higher.

What are your recommendations for air pollution mitigations in India?
Most air pollution comes from the burning of fossil fuels. So, mitigations can either reduce the use of fossil fuels or capture the emissions from these. The latter includes measures like catalytic converters for cars — vehicles used to be a major source of pollution in the US but with but with the advent of catalytic converters and associated technology, cars now emit a fraction of the pollution they did 30 years ago. We’ve also seen scrubbers put on factory smoke-stacks removing considerable emissions. Such mitigations reduce pollution but we must also consider the impacts on the economy.

Transitioning to clean energy like solar or wind power is another mitigation but this takes time. In a scenario like India’s now, if you don’t want to wait for the above and need more immediate impacts, there could be a driving restriction to reduce the number of vehicles on the road.

However, its success depends on how well this is enforced. Such policies did lead to tremendous improvements in air quality in the US over the last 50 years and more recently across Europe. However, certain factors are key to the success of such mitigations — these include how costly the technology is in terms of application and the impacts on jobs as well as the enforcement and compliance levels which governments can achieve for these.