{"id":4006,"date":"2020-08-04T16:08:52","date_gmt":"2020-08-04T14:08:52","guid":{"rendered":"https:\/\/www.breeze-technologies.de\/?p=4006"},"modified":"2021-09-29T00:34:35","modified_gmt":"2021-09-28T22:34:35","slug":"direct-economic-impact-of-improving-air-quality","status":"publish","type":"post","link":"https:\/\/www.breeze-technologies.de\/de\/blog\/direct-economic-impact-of-improving-air-quality\/","title":{"rendered":"The direct economic impact of improving air quality"},"content":{"rendered":"<p><em><span style=\"font-weight: 400;\">Air pollution not only affects <a href=\"https:\/\/www.breeze-technologies.de\/blog\/health-impact-of-indoor-and-outdoor-air-pollution\/\">human health<\/a>, but also the economy. Effective clean air actions sanctioned by governments have been found to improve individual health and <a href=\"https:\/\/www.breeze-technologies.de\/blog\/why-indoor-air-quality-is-important-for-every-business\/\">productivity<\/a>, thus providing clear economic benefits.<\/span><\/em><\/p>\n<p><!--more--><\/p>\n<h2>How air pollution affects the economy<\/h2>\n<p><a href=\"https:\/\/www.worldbank.org\/en\/news\/press-release\/2016\/09\/08\/air-pollution-deaths-cost-global-economy-225-billion\"><span style=\"font-weight: 400;\">According to the World Bank<\/span><\/a><span style=\"font-weight: 400;\">, the aggregate cost of welfare losses occurring from premature deaths due to air pollution was more than US$5 trillion in 2013. This number includes $225 billion in lost labour income. The main causes for economic losses due to air pollution are:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/www.nationalgeographic.org\/encyclopedia\/air-pollution\/#:~:text=Long%2Dterm%20health%20effects%20from,air%20pollutants%20cause%20birth%20defects.\"><span style=\"font-weight: 400;\">Loss of workforce<\/span><\/a><span style=\"font-weight: 400;\"> (increased risk of disease and chronic illnesses, premature deaths)<\/span><\/li>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/www.breeze-technologies.de\/blog\/headaches-at-work-the-sick-building-syndrome-could-be-the-reason\/\"><span style=\"font-weight: 400;\">Decreased productivity<\/span><\/a><span style=\"font-weight: 400;\"> (decreased cognitive functions)<\/span><\/li>\n<li style=\"font-weight: 400;\"><a href=\"http:\/\/www.unece.org\/environmental-policy\/conventions\/envlrtapwelcome\/cross-sectoral-linkages\/air-pollution-ecosystems-and-biodiversity.html\"><span style=\"font-weight: 400;\">Damaged ecosystems and biodiversity<\/span><\/a><span style=\"font-weight: 400;\"> (destruction of natural resources)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.breeze-technologies.de\/blog\/link-between-air-pollution-and-climate-change\/\">Accelerated climate change<\/a> (emissions of greenhouse gases and short-lived climate pollutants)<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In the EU specifically, air pollution was linked to costs of <\/span><a href=\"http:\/\/www.euro.who.int\/en\/media-centre\/sections\/press-releases\/2015\/04\/air-pollution-costs-european-economies-us$-1.6-trillion-a-year-in-diseases-and-deaths,-new-who-study-says\"><span style=\"font-weight: 400;\">US$1.6 billion for 600,000 premature deaths and US$1.6 billion in economic damages<\/span><\/a><span style=\"font-weight: 400;\"> in 2010, which amounted to 10% of the region\u2019s GDP. In the US, <\/span><a href=\"https:\/\/earth.stanford.edu\/news\/how-much-does-air-pollution-cost-us#gs.89fvxy\"><span style=\"font-weight: 400;\">damages caused by air pollution are equivalent to 5% of the country\u2019s yearly GDP<\/span><\/a><span style=\"font-weight: 400;\">, which was $790 billion in 2014. In East Asia and the Pacific region, welfare losses from air pollution were <\/span><a href=\"http:\/\/documents.worldbank.org\/curated\/en\/781521473177013155\/The-cost-of-air-pollution-strengthening-the-economic-case-for-action\"><span style=\"font-weight: 400;\">$2.3 trillion<\/span><\/a><span style=\"font-weight: 400;\"> in 2013, and in South Asia, the losses were <\/span><a href=\"http:\/\/documents.worldbank.org\/curated\/en\/781521473177013155\/The-cost-of-air-pollution-strengthening-the-economic-case-for-action\"><span style=\"font-weight: 400;\">$604 billion<\/span><\/a><span style=\"font-weight: 400;\">. In Africa, the cost of premature deaths from indoor air pollution was <\/span><a href=\"https:\/\/www.un.org\/africarenewal\/sites\/www.un.org.africarenewal\/files\/The_cost_%20of_air%20pollution_in_%20Africa.pdf\"><span style=\"font-weight: 400;\">$232 billion<\/span><\/a><span style=\"font-weight: 400;\"> in 2013 and the cost of premature deaths from outdoor air pollution was <\/span><a href=\"https:\/\/www.un.org\/africarenewal\/sites\/www.un.org.africarenewal\/files\/The_cost_%20of_air%20pollution_in_%20Africa.pdf\"><span style=\"font-weight: 400;\">$215 billion<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Healthcare costs incurred from air pollution are significant as well. <\/span><a href=\"https:\/\/www.oecd.org\/environment\/indicators-modelling-outlooks\/the-economic-consequences-of-outdoor-air-pollution-9789264257474-en.htm\"><span style=\"font-weight: 400;\">According to the Organization for Economic Co-operation and Development (OECD)<\/span><\/a><span style=\"font-weight: 400;\">, they amounted to US$21 billion in 2015, and are expected to rise to an annual US$176 billion by 2060.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Researchers also found that air pollution <\/span><a href=\"https:\/\/hbr.org\/2017\/03\/air-pollution-brings-down-the-stock-market\"><span style=\"font-weight: 400;\">influences<\/span><\/a><span style=\"font-weight: 400;\"> the stock market. A 12% reduction in stock returns occurs with every one standard deviation decrease in air quality. This is because exposure to bad air causes a negative emotional state and decreases cognitive ability. Both of these lead to a lack of appetite for risk, which then results in lower stock returns.\u00a0<\/span><\/p>\n<h2>How positive air quality actions improve the economy<\/h2>\n<p><span style=\"font-weight: 400;\">Reducing air pollution has been found to provide immediate benefits. The 13-month closure of a steel mill in Utah found hospitalizations for pneumonia, bronchitis, asthma, and pleurisy <\/span><a href=\"https:\/\/airqualitynews.com\/2019\/12\/10\/reducing-air-pollution-results-in-immediate-health-improvements\/\"><span style=\"font-weight: 400;\">cut in half<\/span><\/a><span style=\"font-weight: 400;\"> in the first four weeks. Similarly, a 17-day \u201ctransportation strategy\u201d implemented during the 1996 Olympic Games in Atlanta, Georgia found that the resulting decrease in air pollution <\/span><a href=\"https:\/\/www.sciencedaily.com\/releases\/2019\/12\/191206173634.htm\"><span style=\"font-weight: 400;\">led to<\/span><\/a><span style=\"font-weight: 400;\"> a 40% drop in children\u2019s visits to asthma clinics, a 11% drop in trips to the emergency department, and a 19% drop in hospitalizations for asthma in the first four weeks.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the United States, the enactment of the Clean Air Act of 1970 and its amendments <\/span><a href=\"https:\/\/www.atsjournals.org\/doi\/10.1513\/AnnalsATS.201907-538CME\"><span style=\"font-weight: 400;\">ended up<\/span><\/a><span style=\"font-weight: 400;\"> reducing major pollutant emissions by 73% from 1990 to 2015, while the GDP grew by 250%. The monetized health benefits of this legislation exceeded the implementation costs by 32:1, valuing at $2 trillion in 2020. This is attributed to 230,000 avoided deaths from outdoor particulate matter per year, 7,100 premature mortality from ground-level ozone exposure per year, 200,000 fewer cases of acute myocardial infarction per year, 66,000 fewer hospital admissions for respiratory illnesses per year, and 2.4 million fewer asthma attacks per year.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">An <\/span><a href=\"https:\/\/ec.europa.eu\/environment\/air\/\"><span style=\"font-weight: 400;\">EU clean air outlook<\/span><\/a><span style=\"font-weight: 400;\"> report conducted research into the positive economic impact of current policy scenarios dealing with air pollution from 2005 projected to 2030. Costs from lost working days due to air pollution are expected to drop from \u20ac18.5 billion per year to \u20ac8.5 billion per year and costs from drop in productivity from \u20ac66 billion per year to \u20ac30 billion per year.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">From all this, it is evident that dismissing the issue of air pollution not only has an impact physically, but also financially. At <\/span><a href=\"https:\/\/www.breeze-technologies.de\/\"><span style=\"font-weight: 400;\">Breeze Technologies<\/span><\/a><span style=\"font-weight: 400;\">, our <a href=\"https:\/\/www.breeze-technologies.de\/air-quality-sensors\/\">AI-powered air quality sensors<\/a> provide real-time, hyperlocal data on <a href=\"https:\/\/www.breeze-technologies.de\/blog\/what-is-an-air-quality-index-how-is-it-calculated\/\">pollutants<\/a>, which can be leveraged to determine the effectiveness of current <a href=\"https:\/\/www.breeze-technologies.de\/clean-air-actions\/\">clean air actions<\/a> and help develop new targeted ones for maximum impact. It is our mission to improve the efficiency and effectiveness of clean air action plans by 10X based on environmental data and insights. <\/span><a href=\"https:\/\/www.breeze-technologies.de\/contact\/\"><span style=\"font-weight: 400;\">Contact us today<\/span><\/a><span style=\"font-weight: 400;\"> to help create a cleaner, healthier, and wealthier future.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Air pollution not only affects human health, but also the economy. Effective clean air actions sanctioned by governments have been found to improve individual health and productivity, thus providing clear economic benefits.<\/p>\n","protected":false},"author":4,"featured_media":4009,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[75,60,16],"tags":[],"class_list":["post-4006","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-academy","category-air-quality-science","category-blog-posts"],"yoast_head":"<title>The direct economic impact of improving air quality - Breeze Technologies<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.breeze-technologies.de\/de\/blog\/direct-economic-impact-of-improving-air-quality\/\" \/>\n<meta property=\"og:locale\" content=\"de_DE\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The direct economic impact of improving air quality - Breeze Technologies\" \/>\n<meta property=\"og:description\" content=\"Air pollution not only affects human health, but also the economy. 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