Quantifying Air Pollution Vulnerability and its Distributional Consequences

This paper estimates Vulnerability Index of air pollution in Delhi taking into account exposure, susceptibility and coping capacity of households. A general health production function model and a vulnerability assessment framework are used for this purpose.  Data was collected through a survey of sample households located in close vicinity to 10 air pollution monitoring stations in Delhi. The estimated vulnerability index is used to show the effect of household exposure to air pollution. The vulnerability index takes into consideration sample households’ socio-economic status, demographic profile and other characteristics. Result showed that households of lower socio-economic status were the most vulnerable to air pollution and its consequences. The study also quantifies the economic benefits to Delhi households from reduction in air pollution to the standard safety limits of PM10 (100 µg/m3). Estimates show that the total annual economic (health) benefits for a typical household is Rs. 33,978 and for the whole population of Delhi is Rs. 52.4 billion. The study also found that a household of a lower socio-economic status could save much more out of their annual income (4.96 per cent) as compared to a household of a higher socio-economic status (1.97 per cent) from reduced air pollution.