The Effects and Costs of Air Pollution on Health Status in Great Britain

This study explores the effects of air pollution on self-reported health status and the health related costs in UK. The estimates are based on data from the British Household Panel Survey (BHPS). The effects of air pollution on individuals' health status are estimated and their monetary value is calculated. In particular, two main air pollutants are examined; ground-level ozone (O3) and carbon monoxide (CO). Moreover, various econometric approaches are followed. The annual monetary values of the health related costs for ground level O3 range between £21-£25 for a drop of one unit, while the respective values for the CO range between £19-£21.