Abstract
Few studies on measures for mitigation of damage caused by man-made emissions to the environment have tried to consider all major effects. We illustrate the importance of an integrated approach by estimating costs and benefits of a proposed energy saving program for Hungary, originally designed to reduce CO2 emissions. The dominant benefit of implementing the program is likely to be reduced health damage from local pollutants. Also reduced costs of material damage and to a lesser extent vegetation damage contribute to make the net benefit considerable. Compared to the reduction in these local and regional effects, the benefits from reducing greenhouse gases are likely to be minor. Since local effects in general occur much earlier after measures have been implemented than effects of increased emissions of greenhouse gases, inclusion of local effects makes evaluation of climate policy less dependent on the choice of discount rate. In our opinion, similar results are likely for many measures originally designed to reduce emissions of greenhouse gases particularly in some areas in developing countries with high local pollution levels. Main uncertainties in the analysis, e.g. in the relationships between damage and pollution level, are discussed.
Similar content being viewed by others
References
Aaheim, A.: 1994, State dependent pollution control and the choice of policy instruments. CICERO Working Paper 1994:8, Oslo.
Aaheim, H.A., Aunan, K. and Seip, H.M.: 1997, Social benefits of energy conservation in Hungary. An examination of alternative methods of evaluation. CICERO Working Paper 1997:10.
Alberini, A., Cropper, M., Fu, T.-T., Krupnick, A., Liu, J.-T., Shaw, D. and Harrington, W.: 1997, Valuing health effects of air pollution in developing countries: The case of Taiwan. J. Environmental Economics and Management 34, 107–126.
Alfsen, K.H., Brendemoen, H. and Glomsrø d, S.: 1992, Benefits of climate policies: some tentative calculations. Discussion Paper no. 69, Statistics Norway, Oslo.
Alfsen, K., Birkelund, H. and Aaserud, M.: 1995, Impacts of an EC carbon/energy tax and deregulating thermal power supply on CO2, SO2, and NOx emissions. Envir. Resour. Economics 5, 165–189.
Alfsen, K.H. and Rosendahl, K.E.: 1997, Economic damage of air pollution. Statistics Norway, Oslo.
Aunan, K.: 1996, Exposure-response functions for health effects of air pollutants based on epidemiological findings. Risk Analysis 16, 693- 709.
Aunan, K.: 1998. Reduced damage to health and environment from energy saving. Ph. D dissertation, Dept. of Chemistry, University of Oslo.
Aunan, K., Seip, H.M. and Aaheim, H.A.: 1995, A model framework for ranking of measures to reduce air pollution with a focus on damage assessment. In: Hargittai, I. and Vidó czy, T. (eds), Combustion Efficiency and Air Quality, Plenum Press, New York, pp. 269- 283.
Aunan, A., Pátzay, G., Aaheim, H.A. and Seip, H.M.: 1997, Health and environmental benefits from the implementation of an energy saving program in Hungary. CICERO Report 1997:1.
Aunan, A., Pátzay, G., Aaheim, H.A. and Seip, H.M.: 1998, Health and environmental benefits from air pollution reductions in Hungary. Sci. Total Envir. 212, 245–268.
Ayres, R. and Walter, J.: 1991, The greenhouse effect: damages costs and abatement. Envir. Resour. Economics 1, 237–230.
Barker, T.: 1993, Secondary benefits of greenhouse gas abatement: the effects of a UK carbon-energy tax on air pollution. Energy-Environment-Economy Modelling. Discussion Paper No. 4, Dept. of Applied Economics, University of Cambridge.
Bell, J.N.B.: 1992, A reassessment of critical levels for SO2. In: Ashmore, M.R. and Wilson, G.B. (eds), Critical levels for air pollution in Europe, Dept. of the Environment, London, pp. 6–19.
Bolin, B.: 1998, The Kyoto negotiations on Climate Change: A science perspective. Science 279, 330–331.
Brown, L.: 1993, A new area unfolds. In: Brown, L. (ed.), State of the world 1993, A Worldwatch Inst. Report, W.W. Norton & Comp., New York, pp. 3–21.
Cao, H.: 1989, Air pollutants and its effects on plants in China. J. Applied Ecol. 26, 763–773.
Chongqing E.P.B.: 1996. The state of environment in Chongqing 1995. Chongqing Environ. Protection Bureau.
Cline, W.R.: 1992, The economics of global warming. Inst. Intern. Economics, Washington D.C.
Cowell, D. and ApSimon, H.: 1996, Estimating the cost of damage to buildings by acidifying atmospheric pollution in Europe. Atmos. Envir. 30, 2959- 2968.
Cropper, M.L. and Oates, W.E.: 1992, Environmental economics. A survey. J. Economic Literature XXX, 675–740.
Culaotta, E.: 1995, Will plants profit from high CO2? Science 268, 654–656.
EC-UN/ECE: 1996, Forest condition in Europe. Results of the 1995 survey. European Commission and UN Economic Commission for Europe, Brussels, Geneva.
Ekins, P.: 1995, Rethinking the costs related to global warming: A survey of the issues. Envir. Resour Economics 6: 231–277.
EPA: 1996, Valuation of human health and welfare effects of criteria pollutants. Appendix I to The benefits and costs of the Clean Air Act, 1970-1990. USEPA, Washington DC, USA.
Erisman, J.W., De Vries, W. and Müller-Edzards, C.: 1997, Ten years of monitoring forest condition in Europe. United Nations Economic Commission for Europe, European Commission, Brussels, Geneva.
EXTERNE: 1995, Methodology - economic evaluation. Chapter 3 in Vol. 1: Summary, EXTERNE - Externalities of energy, European Commission, Office for Official Publications of the European Communities, Luxembourg.
Fankhauser, S.: 1995, Valuing climate change. The economics of the greenhouse, Earthscan Publications Ltd, London.
Führer, J.: 1996, The critical levels for effects of ozone on crops, and the transfer to mapping. In: Kärenlampi, L. and Skärby, L. (eds), Critical levels for ozone in Europe: Testing and finalizing the concepts, UN-ECE Workshop report, Univ. of Kuopio, Finland, pp. 27–43.
Gan, L.: 1998, Energy development and environmental constraints in China. Energy Policy 26, 119–128.
Hjellbrekke, A.G., Schaug, J. and Skjelmoen, J.E.: 1996, EMEP Data report 1994, Norwegian Inst. Air Research, P.O. Box 100, N-2007 Kjeller, Norway.
Houghton, J.T., Meira Filho, L.G., Callander, B.A., Harris, N., Kattenberg, A. and Maskell, K. (eds): 1996, Climate change 1995. The science of climate change. Cambridge University Press.
Johnston, P., Santillo, D. and Stringer, R.: 1996, Risk assessment and reality: recognising the limitations. In: Quint, D., Taylor, D. and Purchase, R. (eds), Environmental impact of chemicals: assessment and control, The Royal Soc. of Chemistry, Cambridge, UK, pp. 223–239.
Kahnemann, D. and Knetsch, J.L.: 1992, Valuing Public Goods: The Purchase of Moral Satisfaction, J. Envir. Economics and Management 22, 57–70.
Kruse, K.: 1995, Air pollution and impacts on materials in Budapest (in Norwegian). Master Thesis, Dept. of Chemistry, University of Oslo, Oslo, Norway.
Kucera, V. and Fitz, S.: 1995, Direct and indirect air pollution effects on materials including cultural monuments. Water Air Soil Pollut. 85, 153–165.
Kucerea, V., Henriksen, J., Knotkova, D. and Sjöström, C.: 1993, Model for calculations of corrosion costs caused by air pollution and its application in three cities. In: Costa, J.M. and Mercer, A.D. (eds), Progress in understanding and prevention of corrosion.. Inst. of Materials, London, pp. 24–32.
Larssen, T., Xiong, J., Seip, H.M., Liao, B. and Zhao, D.: 1998, Studies of soils, soil water and stream water at a small catchment near Guiyang, China. Water Air Soil Pollut. 101, 137–162.
Lewis, H.W.: 1990, Technological risk. W.W. Norton & Company, New York, London.
Lø kke, H., Bak, J., Falkengren-Grerup, U., Finlay, R.D., Ilvesniemi, H., Nygaard, P.H. and Starr, M.: 1996, Critical loads of acidic deposition for forest soils: is the current approach adequate? Ambio 25, 510–516.
McMichael, A.J., Haines, A., Slooff, R. and Kovats, S.: 1996, Climate change and human health, WHO, Geneva.
Morgan, G. M. and Dowlatabadi, H.: 1996, Learning from integrated assessment of climate change. Climatic Change 34: 337–368.
Mulberg, J.: 1993, Economics and the impossibility of environmental evaluation. Proceedings of the Conference on values and the environment. Guildford, University of Surrey, pp. 107–112.
Navrud, S.: 1994, Economic valuation of external costs of fuel cycles. Testing the benefit transfer approach. In: de Almeida, T. et al. (eds), Integrated electricity resources planning, Kluwer Academic Publ., pp. 49–66.
Nordhaus, W.D.: 1993, Rolling the DICE: An Optimal Transition Path for Controlling Greenhouse Gases, Resour. and Energy Economics 15, 27–50.
OECD: 1989, Environmental policy benefits: Monetary valuation, Study prepared by Pearce, D.W. and Markandya, A., Paris.
OECD/IEA: 1995, Energy policies in Hungary - 1995 survey. OECD, Paris, 214 pp.
Ostro, B.: 1996, A methodology for estimating air pollution health effects. WHO report WHO/EHG/96.5, WHO Geneva.
Pálvölgyi, T. and Faragó , T. (eds): 1994, Hungary: Stabilisation of the greenhouse gas emissions. National communication on the implementation of commitments under the United Nations framework convention on climate change. Hungarian Commission on Sustainable Development, Budapest. 93 pp.
Pearce, D.W., Cline, W.R., Achanta, A.N., Frankhauser, S., Pachauri, R.K., Tol, R.S.J. and Vellinga, P.: 1996, The social costs of climate change: Greenhouse damage and benefits of control., In: Climate change 1995. Economic and social dimensions of climate change. Chapter 6. Cambridge University Press.
Pepper, D.: 1996, Modern environmentalism. An introduction. Routledge, London and New York.
Poó s, M.: 1994, The Hungarian energy efficiency and saving programme. OECD/IEA Annex I Countries Expert Workshops, UNESCO HQ, June, 1994, Paris. Ministry of Industry and Trade, Budapest, 18 pp.
Reichhardt, T.: 1996, New US air pollution regulations are set for a bumpy ride. Nature 384, 392.
Roland, K., Seip, H.M., Aaheim, A., Aunan, K., Lunde, L. and Vennemo, H.: 1997, Chongqing Environmental Plan Study, ECON Report 49/96. Centre for Economic Analysis, P.O. Box 6823 St. Olavs Plass, 0130, Oslo, Norway, 75 pp.
Seip, H.M., Aunan, K., Bándi, G., Haugland, T., Matlary, J.H., Szlávik, J., Tajthy, E., Tajthy, T. and Aaheim, H.A.: 1995, Climate, air pollution and energy in Hungary. CICERO report 1995:2, Center for International Climate and Environmental Research - Oslo, P.O. Box 1129 Blindern, 0317 Oslo, Norway.
Seip, K. and Strand, J.: 1992, Willingness to pay for environmental goods in Norway: A contingent valuation study with real payment. Envir. Resour. Econ., 2, 91–106.
SFT: 1992, Effects of ambient air pollution on health and the environment - Air quality guidelines. Norwegian Pollution Control Authority, Oslo. 1992, Report 93:18.
Shrader-Frechette, K.S.: 1991, Risk and Rationality, University of California Press, Berkely.
Shrader-Frechette, K.S.: 1996, Methodological rules for four classes of scientific uncertainty. In: Lemons, J. (ed.), Scientific uncertainty and environmental problem solving, Blackwell Science, pp. 12–39.
Smith, J.B.: 1996, Standardized estimates of climate change damages for the United States. Climatic Change 32, 313–326.
Sprigg, W.A.: 1996, Doctors watch the forecasts. Nature 379, 582–583.
Swisher, J.N.: 1996, Regulatory and mixed policy options for reducing energy use and carbon emissions. Mitig. Adapt. Strategies Global Change 1, 23–49.
Tajthy, T.: 1993, Emissions of air pollutants from fuel consumption (in Hungarian). Magyar Energetika I.3, 38–43.
Trø nnes, D.H. and Seip, H.M.: 1988, Decision making in control of air pollutants posing health risks. In: Richardson, M.L. (ed.), Risk assessment of chemicals in the environment, The Royal Soc. Chem., London, pp. 265–297.
Watson, R.T., Zinyowera, M.C. and Moss, R.H.: 1996, Climate change 1995. Impacts, adaptations and mitigations of climate change; Scientific-technical analyses. Cambridge University Press, 1996.
Wells, G.J., Xu, X. and Johnson, T.M.: 1994, Valuing the health effects of air pollution: Application to industrial energy efficiency projects in China. Subreport number 8 in the series China - Issues and options in greenhouse gas emission control. The World Bank, Industry and Energy Division, China and Mongolia Dept.
Wenstø p, F., Carlsen, A.J., Bergland, O. and Magnus, P.: 1994, Valuation of environmental goods with expert panels. Norwegian School of Management, Research Report 1994 /1.
WGPHFC: 1997, Short-term improvements in public health from global-climate policies on fossilfuel combustion: an interim report. Lancet 350, 1341–1349.
WHO: 1995, Update and revision of the air quality guidelines for Europe. Meeting of Working Group ‘Classical’ Air Pollutants, Bilthoven, The Netherlands, 11- 14 Oct. 1994. WHO Regional Office for Europe, 1995, Copenhagen, 29 pp.
Xu, X., Dockery, D. and Chen, Y.: 1994, Air pollution and daily mortality in residential areas of Beijing, China. Archives Envir. Health. 49, 216–222.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Asbjørn Aaheim, H., A., K. & Seip, H.M. Climate Change and Local Pollution Effects – An Integrated Approach. Mitigation and Adaptation Strategies for Global Change 4, 61–81 (1999). https://doi.org/10.1023/A:1009693719474
Issue Date:
DOI: https://doi.org/10.1023/A:1009693719474