Impact Of Air Pollution On The Economy

Improved Essays
The Impact of Air Pollution on the Economy
The pure air is consisting of 21% oxygen, 78% nitrogen and less than 1% argon with Carbon di oxide. The pure air is essential for human bodies to live healthier with long life. Adult human intake pure air every day nearly 10-20 cubic meters where as children consume twice as adult. Hence pure air took an important and essential place in the human life. Thus we are celebrating Clean Air day on June 8th every year. Let us discuss about the air pollution and its impact on economic development in detail.
What is air pollution?
The contamination of pure air due to discharge of harmful gases, dust particles and smoke into the atmosphere is known as air pollution. These are mainly discharged from the industries,
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Costs and benefits are used to measure the air pollution.
2. Complementary policies to control the problem

Costs and benefits are used to measure the air pollution:
The increasing level of production and consumption are the main characteristic for severe air pollution in our atmosphere. After a long survive economists had concluded that it was very difficult to measure and control the cost air pollution. Because the air pollution may arise at
• A single local blight or
• At wide range one
The air pollution may damage both acute and chronic to the humans, animals and crops. Let us discuss about hypothetical relationship between the various levels of pollution in advanced industrial society. The pollution scale is measured at one point with the actual level of pollution. We will face a minimum problem level when we move from P to A with respect to air pollution. The acceleration in damages was recognized when we accept the lower abatement outlay. Thus “O” is an optimal level where abatement outlay is lower and the point “B” is at initial
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The polluters include the businessmen who spew wastes into air or on individual who drive automobiles or burning woods for household purposes. A fixed rate of tax should be imposed on the polluters per unit of emissions in terms of liter or kilogram. These fees would exerted market pressure and it should be designed to bring down the pollution at acceptable level. The other method to reduce the pollution level is to adopt the government policies. Thus the direct intervention of government will reduce the air pollution in atmosphere. In 1967, the government passed act on Air Quality. The main features of Air Quality Act of 1967 were:
• Enforcement of air standards
• Announcing air quality control regions
The direct intervention of government will show good results compare to the imposing of tax. A big problem arises in respect to which market mechanism should be followed to measure the tax. Many economists were given their idea towards it. But most idea principal was designed by Mills. He stated several reasons:
• Each discharger should be charged with same tax rate.
• The government should entrust with management for burden of investigation while making

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