Valuation of External Effects of Air Pollution Due to Urban Transportation Network - Case study: Isfahan

Document Type : Research Article


1 Ph.D. candidate of Economics, Department of Economics, University of Isfahan, Iran

2 Professor of Economics, Department of Economics, University of Isfahan

3 Assistant Professor of Economics, Department of Economics, University of Isfahan


Most populous cities in the world are currently facing the air pollution problem, and Iran is no exception. Since one of the most important sources of air pollution is mobile sources, this paper tries to estimate the health effects and economic costs of PM2.5 concentration emitted by transportation in the urban network of Isfahan during 2018-2019. In this regard, for more detail, we estimate the concentration of pollution caused by vehicles by using the results of the Generalized Additive Model (GAM). We also calculate the spatial distribution of pollution in Isfahan using ArcGIS.  Then, the health impacts of air pollution caused by motor vehicles are assessed using the AirQ+. Damages and economic costs of these health impacts are finally estimated by value of a statistical life and mortality rate approach. The results indicate that the mean concentrations for 2018 is 31.03 µg/m3. Using the results of Generalized Additive Model based on the shares obtained for traffic in the five areas studied in Isfahan, the concentration of PM2.5 pollution caused by urban traffic is 4.94 µg/m3. In general, 607 (95%Coeffecient Interval: 404-789) premature deaths in adults in 2018 can be attributed to PM2.5 pollution in Isfahan, among which 150 premature deaths are because of PM2.5 pollution caused by motor vehicles. Using the value of a statistical life approach, the estimated total annual economic cost of traffic pollution in 2018 is USD 57.9 million and 304 billion IRR per year using compensation payment (mortality cost).


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