The Economic Impact of the Effects of Air Pollution on Health: Managua-Nicaragua (1996-2001)

Abstract

There is a positive relation between air pollution by particles smaller than 10 micrometers (PM10), total suspended particles (PTS) and ozone (O3), and Managua’s morbility rate (4%, 8% and 30% respectively). The results of the air quality monitoring conducted by the Universidad Nacional de Ingeniería’s Center for Environmental Research show that PM10 and PTS are above the limits established by the WHO and the EPA. Mostly affected are those people younger than 15 years and older than 60. This situation causes a public expenditure on health of C$73.00 per person. According to Ministry of Health reports, there is annually an average of 30 thousand cases of acute respiratory infections in Managua. If we apply the 30% relation of PTS with morbility rate, we have an equivalent of 10 thousand cases caused by air pollution. Since 2001 there is no monitoring of air quality in Managua. To reactivate the program –and apply law 217– a total of 600 thousand córdobas per year would be needed. We propose that this amount should be taken from the subsidy of 120 million córdobas per year that the public transport sector receives. This policy would have an impact of C$1.60/day per bus (less than one passenger per day). An alternative would be to charge a tax on diesel of C$0.10 once a year, preferably on the month of highest consumption. This would allow the collection of 4 million córdobas, enough money to reactivate the air quality monitoring program and to satisfy the demand of medicine in health posts in Managua.

Keywords: Air Pollution; Morbility; Health Expenditure; Economic Instrument

DOI: http://dx.doi.org/10.5377/encuentro.v43i88.454

Encuentro 2011/ Año XLIII, N° 88, 27-47