county in the contiguous United States). Each type of exposure is computed separately for each pollutant. The sources for each of these inventories are documented in Muller and Mendelsohn (2006).

In the next stage of the APEEP model, peer-reviewed concentration-response functions are used to translate exposures into the number of physical effects, including premature mortalities, cases of illness, reduced timber and crops yields, enhanced depreciation of anthropogenic materials, reduced visibility, and recreation usage. The studies that provide the concentration-response functions related to human health impacts are listed in Table C-1.

The final stage of the APEEP model attributes a dollar value to each of these physical effects. For effects on goods and services traded in markets (decreased crop yields, for example), APEEP multiplies the change in output due to exposures to air pollution times the market price. For nonmarket goods and services, APEEP uses valuation estimates from the nonmarket valuation literature in economics. APEEP values premature mortality risks using the value of a statistical life (VSL) approach (Viscusi and Aldy 2003). APEEP uses EPA’s preferred VSL, which is equivalent to approximately $6 million (year 2000 real U.S. dollars). APEEP provides the option of using a VSL estimate of approximately $2 million from Mrozek and Taylor (2002) as an alternative to the EPA’s VSL. The values attributed to chronic illnesses, such as bronchitis and asthma, are also derived from the nonmarket valuation literature. Acute illnesses are valued with cost of illness estimates. Each of the values applied to human health effects in APEEP are shown in Table C-3.

TABLE C-1 Epidemiology Studies Used in APEEP

Health Event

Pollutant

Study

All-cause adult chronic-exposure mortalitya

PM2.5

Pope et al. 2002

Infant chronic-exposure mortality

PM2.5

Woodruff et al. 2006

Chronic bronchitis

PM10

Abbey et al. 1993

Chronic asthma

O3

McDonnell et al. 1999

Acute-exposure mortality

O3

Bell et al. 2004

Respiratory admissions

O3

Schwartz 1995

ER visits for asthma

O3

Steib et al. 1996

COPD admissions

NO2

Moolgavkar 2000

IHD admissions

NO2

Burnett et al. 1999

Asthma admissions

SO2

Sheppard et al. 1999

Cardiac admissions

SO2

Burnett et al. 1999

aAcute exposure mortality for PM2.5 was not included in this analysis as a separate effect. See Muller and Mendelsohn (2007) for further discussion.

SOURCE: Muller and Mendelsohn 2006. Reprinted with permission; copyright 2007, Journal of Environmental Economics and Management.



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