ABSTRACT

Air pollution specifically the presence of PM2.5 concentrations is a rising concern in south Asian countries. Along with health effects it has economic repercussions that cannot be ignored. This study estimates the source of PM2.5 in Pakistan, India, and Bangladesh through panel regression and survey from MOCC and EPA officials. The study finds that fossil fuel usage and number of vehicles in a country have significant and positive influence on PM2.5 concentrations and are considered the main sources of particulate pollution. Furthermore, the study calculates the economic loss due to PM2.5 concentrations. It reveals that Pakistan’s percentage increase in economic loss from the observed time of 1998-2019 is the highest (129%) compared to India (57%) and Bangladesh (122%). Also, the Cost-Benefit analysis of reducing PM2.5 emissions shows that all the selected countries would have received more benefits than the costs used for emissions reduction. Hence, to avoid excessive usage of fossil fuels, public transportation should be encouraged. Moreover, financial investment and human resource training should be provided to EPA Pakistan employees for its capacity enhancement as it is the leading tool for monitoring air quality. This will also aid in shaping the air quality improvement policies. Lastly, public should be made aware of economic and health damages of air pollution through media advertisement.