16
For the calibration of the model these values need to be decomposed further by
distinguishing between the different economic agents (consumers, producers and
government) and between the different components of the MWTP (i.e., time cost, non-
separable health cost and separable cost component). The Appendix describes in more
detail how this is done. It is assumed that non-health impacts and mortality (except for
the linked medical expenditure) continue to be modelled as in the standard GEM-E3
model. Moreover, we assume that medical costs are subsidized by the government up to
80% and that approximately 42% of the time cost is borne by the consumers, while the
rest is borne by the production sectors. The results are given in Table 2.
Table 2: Detailed decomposition of the total damage of air pollution
(ECU/person/unit of ambient concentration)a
|
PM10 and |
PM2.5 and |
SO2 |
O3 | |
|
Total damage |
18.92 |
31.14 |
0.527 |
577 |
|
(100%) |
(100%) |
(100%) |
(100%) | |
|
1) Total MWTPAmconsumers |
16.88 |
25.28 |
0.485 |
5.60 |
|
of which: |
(89.2%) |
(81.2%) |
(91.9%) |
(95.4%) |
|
a) Time costs consumers ( = w . θm) |
0.64 |
1.06 |
0.001 |
0.13 |
|
(3.4%) |
(3.4%) |
(0.1%) |
(2.2%) | |
|
b) Non-separable health costs consumers |
3.06 |
2.54 |
0.012 |
2.74 |
|
(= Pmed ∙ β 1,m / β2) |
(16.1%) |
(8.2%) |
(2.2%) |
(46.6%) |
|
c) Separable costs consumers |
13.18 |
21.68 |
0.472 |
2.73 |
|
(=ан,.0 . Yd)___________________________________ |
(69.7%) |
(69.6%) |
(89.6%) |
(46.5%) |
|
2) Productivity losses producers |
0.85 |
1.41 |
0.001 |
0.18 |
|
(4.5%) |
(4.5%) |
(0.1%) |
(3.0%) | |
|
3) Medical costs government |
1.20 |
4.46 |
0.042 |
0.09 |
|
(6.4%) |
(14.3%) |
(8.0%) |
(1.5%) |
a units of ambient concentration: μg∕m3 for PM2.5, PM10, nitrates, sulphates, SO2; 6h ppb for O3
Source: ExternE (1995-2000), Friedrich and Bickel (2001) and own assumptions
The share of the total MWTP of the consumers (as formulated by equation (15))
in the total damage ranges between 81.2% and 95.4%, depending on the pollutant that is
considered. The rest of the damage is inflicted upon the production sectors and the
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