Delhi NCR has been grappling with severe air pollution for the past few months. Even when the government imposed a ban on bursting firecrackers on Diwali this year, the air quality did not show much improvement.
Moreover, due to the onset of winter, the capital is entering the red zone more often, with the Air Quality Index at 471. The obvious repercussion -worsening health issues – has already intensified.
Hospitals are observing a surge of patients admitted with respiratory problems, people are migrating to other places to escape the smog, and those with health conditions are finding it more difficult to cope with the environment.
In fact, health problems are not the only outcomes of air pollution, economic ones are too.
Here’s how it can lead to an economic emergency.
How Does Air Pollution Negatively Affect Economic Growth?
It is a common misconception of various companies that good air quality and growth in their business are inversely proportional to each other. Most believe that as more and more environmental regulations are put in place, they will increase their costs and hold back businesses.
However, this conventional ideology, of considering air pollution as a by-product of economic growth, has been challenged by Clean Air Fund (a global philanthropic organisation aiming to tackle air pollution) and Dalberg Advisors (an international strategic advisory firm).
Their report, ‘Air pollution and its impact on Indian businesses’, based on big data, illustrates the costs of air pollution to Indian businesses. For example, the rate of absenteeism increases, especially when the employees have elderly or children at home. The data also proves that air pollution decreases consumer spending by 1.3% in the country.
Therefore, the report reveals that air pollution costs Indian firms approximately 50% of the cost of dealing with the COVID-19 pandemic.
Moreover, data from the World Bank reiterates the same fact. It shows that 1.4 billion deaths account for a loss of $55.4 billion in 2013, by applying the economic value of a working year to the mean number of working years lost per deceased individual.
An article in the World Economic Forum claims that Indian businesses could have earned $6 billion in higher revenues in 2019, had sick leaves due to air pollution been less.
Read More: Delhi Gets Its Places Renamed After Pollution Exceeds WHO Limit By 100 Time
What Needs To Be Done?
A study published by the India State-Level Disease Burden Initiative in 2020 highlights the economic aspect of air pollution in each state of the country. According to its findings, 18% of the total deaths in India in 2019, were attributable to air pollution—moreover, premature deaths and morbidity due to pollution cost 1.4% of the GDP that year.
The study suggests that investments in tailoring air pollution control policies targeting different states will help India achieve its goal of becoming a $5 trillion economy.
The World Bank’s findings also support this solution methodology. It says that an “airshed” approach at a subnational level will help India counter this problem. An airshed is defined as a region sharing the common flow of air that may become polluted uniformly. These airsheds can stretch over thousands of kilometres, much beyond city boundaries. Hence, it is important to look further than particular cities.
Therefore, a coordinated effort by all the relevant stakeholders is going to solve the acute problem of air pollution that many states in India are experiencing, to prevent an impending economic crisis, besides the ongoing health one.
Sources: World Economic Forum, World Bank, Clean Air Fund
Find the blogger: Unusha Ahmad
This post is tagged under: air pollution, health issues, economic emergency, World Bank, report, study, data, airshed, national, India, states, India State-Level Disease Burden Initiative, policies, GDP, World Economic Forum, COVID-19, pandemic, Air Quality Index, Delhi NCR, Diwali, smog, economic growth, Clean Air Fund, Dalberg Advisors, Air pollution and its impact on Indian businesses, business
Disclaimer: We do not hold any right, or copyright over any of the images used, these have been taken from Google. In case of credits or removal, the owner may kindly mail us.
Other Recommendations:
Firecrackers Only Reason For Delhi Diwali Pollution? Apparently Not
