The Economic Cost of Particulate Air Pollution on Health in Singapore

The rapid process of urbanization and industrialization in developing countries and newly industrialized countries (NIC) over the past few decades has resulted in degradation in air quality in these countries. However, accompanying this phenomenon has been the growing realization that economic development and environmental management are mutually supporting goals. The paper attempts to address this concern by estimating the economic cost of particulate air pollution on health in Singapore. Using the damage function/dose response approach, the mortality and morbidity effects of particulate air pollution on the population of Singapore are estimated. In addition, the economic values of these health impacts are also calculated in terms of the statistical lives which could be saved and the cost of illness incurred. The results show that the cost of particulate air pollution (PM10) in Singapore is substantial both in absolute and relative terms. It is estimated that the total economic cost US $3662 million is about 4.31% of Singapore’s GDP in 1999. The findings thus strengthen the assertion that policy-makers should not ignore the environment in their pursuit for economic progress.