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Determinants of air pollution in Delhi and estimating its future economic cost

Student name: Mr Arpit Bhargava
Guide: Dr Nandan Nawn
Year of completion: 2017
Host Organisation: TERI University

Abstract: One of the issues in urban areas is air pollution. According to a report of WHO, nearly 90% of total deaths owing to air pollution occur in low and middle-income countries. In a developing country like India cost of air pollution was estimated to be Rs. 3.75 lakh crore a year which is 5.7 % of country’s GDP in 2009-10. Taking it at a micro level, Delhi (The national capital of India) is one of the most polluted cities in the world with an annual PM.2.5 level of 153 μg/m3.

In spite of many policy measures to reduce air pollution, Delhi’s air pollution has not come down. This paper is an attempt to find out the potential sources of air pollution at 6 different air monitoring stations in Delhi and estimating the economic cost due to air pollution in Delhi for the year 2020. Data is collected for 8 pollutants over the period April 2015 to December 2016. It has been found that vehicle pollution is one the common sources of air pollution in Delhi but not the most significant one at every station. Thus, Delhi air pollution needs to be catered at a micro level since sources of air pollution differ at different stations. The cost that Delhi will bear due air pollution in the year 2020 is coming out to be $50900 (million).

Keywords: Value of Statistical Life, Wage- Risk Model, Economic Cost, Air pollutants.