APPENDIX
For chronic bronchitis the resulting figure is divided by the remaining number of years,
which is taken to be 35. The value of the productivity loss of the firms is then calculated
by multiplying the total number of working days lost with the average gross wage rate. γ
is computed by dividing the total number of working days lost due to air pollution per
person by the total number of working days per person.
In addition to the working days lost, the consumer’s available time is also reduced. It is
assumed that per lost working day of 8 hours, the consumer loses on average 6
additional hours of leisure time.
Value of other components
The value of the other components of the air pollution damage is taken from ExternE
(1996, 1998, 2000) and Friedrich and Bickel (2001), except in the case of medical costs
related to mortality. They are assumed to account for 10% of the total marginal
willingness-to-pay for the reduction of mortality.
To compute the medical costs paid by the government it is assumed that a government
subsidy of 80% exists for medical care.
Table A.4: The decomposition of the total marginal damage of the pollutants
(ECU/unit of ambient concentration)a
|
Effect no. |
PM10 and |
PM2,5 and |
SO2 |
O3 | |
|
Total damage__________________ |
18.92 |
31.14 |
0.53 |
5.87 | |
|
Non-health related damage______ |
(1) |
1.80 |
2.80 |
0.00 |
1.96 |
|
Mortality |
12.64 |
20.97 |
0.52 |
0.86 | |
|
Pure MWTP |
(2) |
11.38 |
18.87 |
0.47 |
0.77 |
|
Medical costs |
1.26 |
2.10 |
0.05 |
0.09 | |
|
Consumers |
(3) |
0.25 |
0.42 |
0.01 |
0.02 |
|
Government______________ |
________________(4) |
1.01 |
1.68 |
0.04 |
0.07 |
|
Morbidity |
4.48 |
7.37 |
0.003 |
3.05 | |
|
Pure MWTP |
(5) |
2.76 |
1.42 |
0.002 |
2.71 |
|
Medical costs |
0.24 |
3.48 |
0.000 |
0.03 | |
|
Consumers |
(6) |
0.05 |
0.70 |
0.000 |
0.01 |
|
Government |
(7) |
0.19 |
2.78 |
0.000 |
0.02 |
|
Time costs |
1.48 |
2.47 |
0.001 |
0.31 | |
|
Consumers |
(8) |
0.64 |
1.06 |
0.001 |
0.13 |
|
Production sectors___________ |
________________(9) |
0.85 |
1.41 |
0.001 |
0.18 |
|
Decomposition GEM-E3 |
= (8) |
0.64 |
1.06 |
0.001 |
0.13 |
|
Non-separable health costs |
= (3)+(5)+(6) |
3.06 |
2.54 |
0.012 |
2.74 |
|
consumers | |||||
|
Separable costs consumers |
= (1)+(2) |
13.18 |
21.68 |
0.472 |
2.73 |
|
Productivity losses producers |
= (9) |
0.85 |
1.41 |
0.001 |
0.18 |
|
Medical costs government_______ |
= (4)+(7) |
0.20 |
4.46 |
0.042 |
0.09 |
a Units of ambient concentration: μg∕m3 for PM2.5, PM10, nitrates, sulphates and SO2; 6h ppb for O3
Source: ExternE (1996, 1998, 2000), Friedrich and Bickel (2001) and own assumptions
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