Reducing Air Pollution Saved the U.S. $24 Billion on Senior Health Benefits

A study published in the American Economic Review said reduced air pollution levels between 1999 and 2013 saved the United States an estimated $24 billion annually on senior health benefits and reduced deaths among older adults, reports Gizmodo . The researchers analyzed county-level air quality data from the U.S. Environmental Protection Agency, with particulate matter and wind direction of particular interest. They paired this data with mortality rates and medical history of Medicare beneficiaries that live in those counties. Despite the savings and reduced death incidence, the study noted that 25 percent of Medicare recipients still lose years off their life because of short-term pollution increases. "One of the main ways in which we differ from previous studies . . . is that we rigorously estimate the counterfactual life expectancy of individuals who are killed by acute pollution exposure," said University of Illinois at Urbana-Champaign Professor Tatyana Deryugina. "This is extremely important for understanding the costs of air pollution — society is likely to be willing to expend more resources saving the life of someone who would have lived for 10 years otherwise."