Air pollution costs Indian economy $260 billion in 2024, Dalberg Advisors report finds
GS3Economy · S&T · Environment · Security· Growth, inflation & macro indicators· Mains·
Why in news
Dalberg Advisors and the Clean Air Fund released a report estimating that air pollution cost the Indian economy $260 billion in 2024 due to productivity losses and healthcare costs.
Background
The report estimates that a 20% reduction in PM2.5 pollution could avert $85 billion in annual economic losses by 2030. Economic impacts are identified across five channels: presenteeism, absenteeism, premature mortality, healthcare expenditure, and reduced consumer spending.
Facts for Prelims
- FactAir pollution cost the Indian economy $260 billion in 2024.
- FactA 20% reduction in PM2.5 pollution could avert $85 billion in annual economic losses by 2030.
- FactPresenteeism refers to employees working while ill, affecting performance despite being present.
For Mains
Q. Analyze how air pollution acts as a hidden macroeconomic constraint on India's growth by impacting labor productivity and healthcare expenditure.
Dimensions to cover in your answer
- Productivity loss: Invisible costs of presenteeism and reduced worker efficiency due to respiratory issues
- Fiscal burden: Escalating public and private healthcare expenditure to mitigate pollution-related illnesses
- Consumption impact: Reduced consumer spending and activity resulting from deteriorating public health conditions
Keywords: Presenteeism · Labor Productivity · Externalities · PM2.5 · Human Capital · Economic Cost
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