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Chapter- 2- Review of Literature Page | 25 LITERATURE REVIEW A literature review is a body of text that aims to review the critical points of current knowledge including substantive findings as well as theoretical and methodological contributions to a particular topic. Literature reviews are secondary sources, and as such, do not report any new or original experimental work. Most often associated with academic-oriented literature, such as a thesis, a literature review usually precedes a research proposal and results section. Its ultimate goal is to bring the researcher up to date with current literature on a topic and forms the basis for another goal, such as future research that may be needed in the area. A well-structured literature review is characterized by a logical flow of ideas; current and relevant references with consistent, appropriate referencing style; proper use of terminology; and an unbiased and comprehensive view of the previous research on the topic. This study also followed number of national and International research, which are as follows: NATIONAL STATUS Mavalankar et al., (2009) 1 in their study ‘A preliminary estimate of immediate cost of chikungunya and dengue to Gujarat, India’, estimated cost of chikungunya and dengue by combining nine earlier studies on major cost factors such as costs of illness and control, and thus building a more comprehensive picture of the immediate cost of these Aedesmosquito-borne diseases to Gujarat. Dorret al.,(2008) 2 examined ‘Cost of illness: Evidence from a study in five resource-poor locations in India’ founds that health services are funded largely through out-of-pocket spending (OOPS). They carried out this study to collect data on the cost of an illness episode and parameters affecting cost in five locations in India. 1 Dileep V. Mavalankar, Tapasvi I. Puwar, DiptiGovil, Tina M. Murtola, S.S. Vasan (2009). A Preliminary Estimate of Immediate Cost of Chikungunya and Dengue to Gujarat, India. 2 David M. Dror, Olga van Putten-Rademaker& Ruth Koren,(2008). Cost of illness: Evidence from a study in five resource-poor locations in India” Indian J Med Res 127, pp 347-361

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Chapter- 2- Review of Literature

Page | 25

LITERATURE REVIEW

A literature review is a body of text that aims to review the critical points of current

knowledge including substantive findings as well as theoretical and methodological

contributions to a particular topic. Literature reviews are secondary sources, and as

such, do not report any new or original experimental work.

Most often associated with academic-oriented literature, such as a thesis, a literature

review usually precedes a research proposal and results section. Its ultimate goal is to

bring the researcher up to date with current literature on a topic and forms the basis for

another goal, such as future research that may be needed in the area.

A well-structured literature review is characterized by a logical flow of ideas; current and

relevant references with consistent, appropriate referencing style; proper use of

terminology; and an unbiased and comprehensive view of the previous research on the

topic. This study also followed number of national and International research, which are

as follows:

NATIONAL STATUS

Mavalankar et al., (2009)1in their study ‘A preliminary estimate of immediate cost of

chikungunya and dengue to Gujarat, India’, estimated cost of chikungunya and dengue

by combining nine earlier studies on major cost factors such as costs of illness and

control, and thus building a more comprehensive picture of the immediate cost of these

Aedesmosquito-borne diseases to Gujarat.

Dorret al.,(2008)2examined ‘Cost of illness: Evidence from a study in five resource-poor

locations in India’ founds that health services are funded largely through out-of-pocket

spending (OOPS). They carried out this study to collect data on the cost of an illness

episode and parameters affecting cost in five locations in India.

1Dileep V. Mavalankar, Tapasvi I. Puwar, DiptiGovil, Tina M. Murtola, S.S. Vasan (2009). A Preliminary Estimate of Immediate Cost of Chikungunya and Dengue to Gujarat, India. 2David M. Dror, Olga van Putten-Rademaker& Ruth Koren,(2008). Cost of illness: Evidence from a study in five resource-poor locations in India” Indian J Med Res 127, pp 347-361

Chapter- 2- Review of Literature

Page | 26

Dorr. et al., (2007)3 studied‘ Willingness to pay for health insurance among rural and

poor persons: Field evidence from seven micro health insurance units in India’ The

study provides evidence on Willingness to pay (WTP), gathered through a unidirectional

(descending) bidding game among 3024 households in seven locations where micro

health insurance units are in operation.

Usha Gupta (2006)4worked on the topic “Valuation of Urban Air Pollution: A Case

Study of Kanpur City in India’ . Theauthor estimated the monetary benefits to

individuals from health damages avoided as a result on reductions in air pollution in the

urban industrial city of Kanpur in India.

Gautam A. et al(2003)5 examined on “Impact of air pollution on Human Health in

Dehradoon City”. They studied on Air quality levels of Dehradoon city from four selected

sites and simultaneously collected the health effect data from the selected area and

calculate the effects of air pollution on human health

Shankar and Rao (June 2002)6 analyzed the “Impact of Air Quality on Human Health:

A case of Mumbai City, India,” and measured the levels of air pollution and estimated

the monetary benefits to individuals from health damages avoided as a result on

reductions in air pollution in the urban industrial city of Kanpur in India.

Srivastava and Kumar (2001)7have disclosed in their study “Economic valuation of

health impacts of air pollution in Mumbai” that air pollution leads to serious negative

impacts on health. An attempt has been made in this paper to establish dose-response

relationship of Ambient Air Quality Index and human health, based on time spent by an

individual in different microenvironments during one day. Economic valuation of

3David M. Dror, Ralf Radermacher& Ruth Koren (2008).Willingness to pay for health insurance among rural and poor persons: Field evidence from seven micro health insurance units in India 4Usha Gupta(2006),.him RaoAmbedkar College, University of Delhi. Valuation of Urban Air Pollution: A Case Study of Kanpur City in India. 5 A. Gautam, M. Mahajan& S. Garg (2003). Impact of air pollution on human health in Dehradoon city. 6P.Ravi Shankar, G.RamaRao. (2002).Impact of Air Quality on Human Health: A Case of Mumbai City, India, (Paper presented at the IUSSP Regional Conference on Southeast Asia’s Population in a Changing Asian Context, 10-13. 7Anjali Srivastava, RakeshKumar (2001). Economic valuation of health impacts of air pollution in Mumbai.inEnvironmental Monitoring and Assessment , 75:135-143.

Chapter- 2- Review of Literature

Page | 27

morbidity and mortality has been attempted through lost salary approach. The results

show that the avoidance cost is 29% of the total health damage cost.

Smith et.al. (2000)8in their paper “National burden of disease in India from indoor air

pollution” evaluated the existing epidemiological studies and applies the resulting risks

to more than three-quarters of Indian households dependent on such fuels. Allowance is

made for the existence of improved stoves with chimneys and other factors that may

lower exposures. Attributable risks are calculated in reference to the demographic

conditions and patterns of each disease in India.

Cropper, Simon, et al., (1997)9In their paper “The Health Benefits of Air Pollution

Control in Delhi.”Reported the result of relating levels of particulate matter to daily

deaths in Delhi, India, between 1991 and 1994. The focus is on Delhi because it is one

of the world’s most polluted cities. This study concludes, that the impact of particulate

matter on total non-trauma deaths in Delhi is smaller than effects found in the United

States. The impacts of air pollution on deaths by age group may be very different in

developing countries than in the United States, where peak effects occur among people

aged sixty-five and older. In Delhi, peak effects occur between the ages of fifteen and

forty-four, implying that a death associated with air pollution causes more life-years to

be lost.

INTERNATIONAL STATUS

SoyeonGuh, et al., (2008)10, in their study“ Comparison of cost-of-illness with

willingness-to-pay estimates to avoid shigellosis: evidence from China” have shown that

cost of illness (COI) measures are lower than the conceptually correct willingness-to-

pay (WTP) measure of the economic benefits of disease prevention. They compared 8Smith, K.R., Corvalan, C.F. and T. Kjellstrom, (1999).National burden of disease in India from indoor air pollution Factors, Epidemiology, 10, 573-584. 9Cropper, Simon, Alberini, Arora and Sharma (1997).The Health Benefits of Air Pollution Control in Delhi American Journal of Agricultural Economics, 79, 1625-1629. 10SoyeonGuh, Chen Xingbao, Christine Poulos, Zhang Qi, Cao Jianwen, Lorenz von Seidlein, Chen Jichao, XuanYi Wang, Xing Zhanchun, Andrew Nyamete, John Clemens and Dale Whittington (2008).Comparison of cost-of-illness with willingness-to-pay estimates to avoid shigellosis: evidence from China. Health Policy and Planning;23:pp 125–136

Chapter- 2- Review of Literature

Page | 28

COI with stated preference estimates of WTP associated with shigellosis in a rural area

of China.

George, et al., (2008)11 studied the “Costs of Illness Among Older Adults: An Analysis

of Six Major Health Conditions with Significant Environmental Risk Factors”had

estimated the cost burden associated with six major illnesses among Americans age 65

or older: chronic lung disease, ischemic heart disease, stroke, lung cancer, pneumonia,

and gastrointestinal illness. These illnesses were selected because of their relatively

high impact among older populations and because they include environmental

exposures as a significant risk factor. A prevalence-based cost-of-illness approach was

applied. Medical costs were estimated from Medicare claims data in 2000.

TanjimaPervinet. al., (2008)12carried out a research on the topic“Societal costs of air

pollution-related health hazards: A review of methods and results”.This paper aims to

provide a critical and systematic review of the societal costs of air pollution-related ill

health (CAP), to explore methodological issues that may be important when assessing

or comparing CAP across countries and to suggest ways in which future CAP studies

can be made more useful for policy analysis.

Spadaro and Rabl (2008)13in their paper“Estimating the uncertainty of damage costs of

pollution: A simple transparent method and typical results”lightingthat most (and in

many cases all) of the uncertainty calculation involves products and/or sums of products

and can be accomplished with an analytic solution which is simple and transparent.

They present their own assessment of the component uncertainties and calculate the

total uncertainty for the impacts and damage costs of the classical air pollutants; results

for a Monte Carlo calculation for the dispersion part werealso shown. The distribution of

11George van Houtven, Amanda A. Honeycutt, Boyd Gilman, Nancy T. Mccall, Wanda W. Throneburg, and Kathy E. Sykes (2008).Costs of illness among older adults: an analysis of six major health conditions with significant environmental risk factors. 12TanjimaPervin, Ulf-G Gerdtham and Carl H Lyttkens (2008) Societal costs of air pollution-related health hazards: A review of methods and results, http://www.resource-allocation.com/content/6/1/19 13Joseph V. Spadaro and Ari Rabl(2008). Estimating the uncertainty of damage costs of pollution: A simple transparent method and typical results in Environmental Impact Assessment ReviewVolume 28, Issues 2-3, pp 166-183

Chapter- 2- Review of Literature

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the damage costs was approximately lognormal and can be characterized in terms of

geometric mean µg and geometric standard deviation σg, implying that the confidence

interval is multiplicative.

Marbek Resource Consultants and Colin Welburn (2007)14 have focused on

“Evaluation of Total Cost of Air Pollution Due to Transportation in Canada” have

focused on estimating the economic value of transport-caused air pollution, allocating

these costs by transport mode and province and estimating average unit pollutant costs.

The goal of the study was to provide reasonable and credible estimates of the total cost

of transport-caused air pollution in Canada in the year 2000.

Wen-Yi Chenet. al., (2007)15“The Willingness to Pay for the Health Care under

Taiwan’s National Health Insurance” have utilized the nested multinomial logit model to

estimate the willingness to pay (WTP) values for different National Health Insurance

(NHI) coverage plans in Taiwan. The WTP value for having care from clinics in a

hospital care only plan is NT$178 (US$6) per person/month. The WTP value for having

care from hospitals in a clinic care only plan is NT$1,342 (US$43) per person/month.

The WTP value for the NHI with a universal coverage is NT$1,540 (US$49) per

person/month. The figure NT$1,540 (US$49) is equivalent to 8.77% of monthly

household income, much higher than the new premium rate of the new NHI tax (2.5%-

4% of monthly household income) proposed by the Taiwan’s government. Their result

suggests that Taiwan’s government may increase the new premium rate further in order

to make Taiwan’s NHI financially more sustainable.

Dave Sawyer et. al (2007)16 “Evaluation of Total Cost of Air Pollution Due to

Transportation in Canada” The Reduced Form Source-Receptor Tool, ReFSoRT,

developed by RWDI in collaboration with Environment Canada, was used to determine

14Dave Sawyer and Seton Stiebert (Marbek Resource Consultants),ColinWelburn(2007).Evaluation of Total Cost of Air Pollution Due to Transportation in Canada. 15Wen-Yi Chen a , Chunhuei Chi b , Yu-Hui Lin (2007) .The Willingness to Pay for the Health Care under Taiwan’s National Health Insurance2007 International Health Economics Association 6th World Congress in Copenhagen, Denmark. 16Dave Sawyer and Seton Stiebert (Marbek Resource Consultants),ColinWelburn(2007).Evaluation of Total Cost of Air Pollution Due to Transportation in Canada.

Chapter- 2- Review of Literature

Page | 30

changes in ambient air quality attributable to year 2000 transport emissions at the

census division level. A review of the year 2000 emission inventory indicates that the

transportation sector comprises a significant proportion of the total emissions for all the

relevant pollutants considered (SO2, NOX, PM2.5 and VOC). NOX transportation

emissions contributed the largest share of the overall emissions.

Alexander et. al.,(2004)17in his study“ Rich-Poor Differences in Health Care Financing”

have found that most community finance schemes have evolved in the context of

severe economic constraints, political instability, and lack of good governance. Usually

government taxation capacity is weak, formal mechanisms of social protection for

vulnerable populations absent, and government oversight of the informal health sector

lacking. In this context of extreme public sector failure, community involvement in

financing health care provides a critical, though insufficient, first step in the long march

toward improved health care access for the poor and social protection against the cost

of illness.

Wilson, (2004)18 worked on “A WTP Model Showing the Relationships Between Three

Approaches For Pollution Control”. In this study , a simple willingness to pay (WTP)

model that shows the theoretical relationships among three valuation approaches that

can be used to measure changes in health resulting from pollution has been developed.

The three valuation approaches considered are the contingent valuation (CV), cost of

illness (COI) and the defensive behavior approaches.

B. Schramm et al., (2003)19 in their study evaluated the “Cost of illness of moderate to-

severe atopic asthma and/or seasonal allergic rhinitis (SAR) in Germany” from the

perspective of third-party payers (TPP) and patients. Five-hundred patients (276

children/adolescents) with moderate-to-severe asthma and/ or SAR were included in

17Preker, Alexander, Carrin, Guy, Dror, David M., Jakab, Melitta, Hsiao, William and Arhin, Dyna, (2004). Rich-Poor Differences in Health Care Financing. Health Financing For Poor People: Resource Mobilization And Risk Sharing, Preker A.S., Carrin G., eds., pp. 3-51, World Bank. 18Clevo Wilson(2004). A WTP Model Showing the Relationships Between Three Approaches For Pollution. 19B. Schramm, B. Ehlken, A. Smala, K. Quednau, K. Berger, D. Nowak (2003) .Cost of illness of atopic asthma and seasonal allergic rhinitis in Germany: 1-yr retrospective study, ISSN 0903-1936

Chapter- 2- Review of Literature

Page | 31

this cross-sectional study. Information was collected using as pacific patient

questionnaire and the abstraction of patient records.

Anne Case et at.,(2002)20“Economic Status and Health in Childhood: The Origins of

the Gradien”.In the study the authors said that the well-known positive association

between health and income in adulthood has antecedents in childhood. Not only is

children's health positively related to household income, but the relationship between

household income and children's health becomes more pronounced as children age.

Part of the relationship can be explained by the arrival and impact of chronic conditions.

Children from lower income households with chronic conditions have worse health than

to those from higher-income households. The adverse health effects of lower income

accumulate over children's lives. Part of the intergenerational transmission of

socioeconomic status may work through the impact of parents' income on children's

health.

Caceres. et at.,(2001),21‘Indoor air pollution in a zone of extreme poverty of

metropolitan Santiago. The study represent an important risk factor for human health.

They have investigated the levels of carbon monoxide (CO), sulphur dioxide (SO2),

Respirable particulate matter(PM10), polycyclic aromatic hydrocarbons (PAHs) and

mutagen city in the PM5 fraction, as well as temperature and humidity, in the interior of

24 houses in La Pintana, Santiago. The survey showed that in children younger than 2

years, most respiratory diseases occur during winter (75%), the most frequent complaint

being bronchitis (62%) and obstructive bronchitis (50%). The higher pollutant

concentrations were observed during heating hours, in houses that used coal(mean

PM10 250 µg·m-3, CO 42 ppm, SO2 192 ppb) or firewood (mean PM10 489 µg·m-3,CO

57 ppm, SO2 295 ppb). PAHs were detected in all houses and they concluded that they

came from inside the house and not from outdoor infiltration.

20Case, Anne, Darren Lubotsky, and Christina Paxson. (2002). "Economic Status and Health in Childhood: The Origins of the Gradient ."American Economic Review, 92(5): 1308–1334. 21Caceres, D., M. Adonis, G. Retamal, P. Ancic, M. Valencia, X. Ramos, N. Olivares and L. Gil (2001).Indoor air pollution in a zone of extreme poverty of metropolitan Santiago. RevistaMedicaChilena 129:33-42.

Chapter- 2- Review of Literature

Page | 32

H. Sommer, et al.,(2000)22have come out with a study on “Economic evaluation of

health impacts due to road traffic-related air pollution (An impact assessment project of

Austria, France and Switzerland)”.In preparation for the Transport, Environment and

Health Session of the WHO Ministerial Conference on Environment and Health in

London (June 1999) a tri-lateral project was carried out by Austria, France and

Switzerland. The project assessed the health costs of road-traffic related air pollution in

the three countries using a common methodological framework.

Alberini and Krupnik (2000).23In their study“ Cost-of-Illness and Willingness-to-Pay

Estimates of the Benefits of Improved Air Quality: Evidence from Taiwan” have compare

cost-of-illness (COI) and willingness-to-pay (WTP) estimates of the damages from minor

respiratory symptoms associated with air pollution using data from a study in Taiwan in

1991-92. A contingent valuation survey is conducted to estimate WTP to avoid minor

respiratory illnesses. Health diaries are analyzed to predict the likelihood and cost of

seeking relief from symptoms and of missing work. As predicted by estimates, WTP is

exceeding on COI the latter by 1.61 to 2.26 times, depending on pollution levels. These

ratios are similar to those for the United States, despite the differences between the two

countries.

Thanh and Lefevre (2000)24carried out a research on the topic “Assessing Health

Impacts of Air Pollution from Electricity Generation: The Case of Thailand” and have

applied they apply the impact pathway approach (IPA) to estimate health impacts and

corresponding damage costs of sulfur dioxide (SO2) and emissions offline particulate

matter (PM10) from four power units using different fuels (lignite, oil, natural gas, and

coal) at four locations in Thailand. The results show that the damage cost related to

health effects of electricity generation in Thailand are relatively small, but not negligible,

ranging from 0.006 U.S. cent to 0.05 U.S. cent per kilowatt-hour (in 1995 dollars).

22H. Sommer, N. Künzli, R. Seethaler, O. Chanel, M. Herry, S. Masson, J-C. Vergnaud, P. Filliger, F. Horak JR., R. Kaiser, S. Medina. V. Puybonnieux-texier, P. Quénel, J. Schneider, M. Studnicka(2000).Economic Evaluation Of Health Impacts Due To Road Traffic-Related Air Pollution (An impact assessment project of Austria, France and Switzerland) 23Alberini, Anna and Alan Krupnick, (2000). .Cost-of-Illness and WTP Estimates of the Benefits of Improved Air Quality: Evidence from Taiwan.,Land Economics 76(1). 24Thanh, Bui Duy and Thierry Lefevre, (2000). .Assessing Health Impacts of Air Pollution from Electricity Generation: The Case of Thailand., Environmental Impact Assessment Review, 20, 137-158.

Chapter- 2- Review of Literature

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Damage costs to the public health due to SO2 andPM10 emissions from electricity

generation not only depend on fuel and generating technology but also depend strongly

on power plant location. This implies that the assessment of adverse health impacts is

very important for technology choice and setting of new power plants.

Sean D. Sullivanet al.,(2000)25“The Economic Burden of COPD”. In this study they

found that COPD is one of the leading causes of morbidity and mortality worldwide and

imparts a substantial economic burden on individuals and society. Despite the intense

interest in COPD among clinicians and researchers, there is a paucity of data on health-

care utilization, costs, and social burden in this population. The total economic costs of

COPD morbidity and mortality in the United States were estimated at $23.9 billion in

1993. Direct treatments for COPD-related illness accounted for $14.7 billion, and the

remaining $9.2 billion were indirect morbidity and premature mortality estimated as lost

future earnings. Similar data from another US study suggest that 10% of persons with

COPD account for > 70% of all medical care costs.

Larson, Avaliani.et. al(1999)26“The Economics of Air Pollution Health Risks in Russia:

A case study of Volgograd” in the study a combined health risk assessment, cost-

effectiveness analysis, and benefit-cost analysis is undertaken for direct particulate

emissions from 29 stationary source polluters in the city of Volgograd, Russia. Annual

particulate-related mortality risks from these stationary sources are estimated to be

substantial, with an estimate in the range of 960- 2,667 additional deaths per year in this

city of one million. The majority of these risks are attributed to two major facilities in the

northern part of the city. For several emission reduction projects, the cost-per-life saved

was estimated to be quite low. The total net benefits to the city of implementing five of

the six identified projects, leading to roughly a 25% reduction in mortality risk, are

estimated to be at least $40 million in present value terms.

25Sean D. Sullivan,Scott D. Ramsey, Todd A. Lee. (2000)“The Economic Burden of COPD” in doi: 10.1378/chest.117.2_suppl.5S CHEST February 2000 vol. 117 no. 2 suppl 5S-9S 26Larson, Avaliani, Golub, Rosen, Shaposhnikov, Strukova, Vincent (1999) .The Economics of Air Pollution Health Risks in Russia: Acase study of Volgograd.,World Development, 10, 1803-1819.

Chapter- 2- Review of Literature

Page | 34

Clevo Wilson (1999)27“A WTP Model Showing The Relationships Between Three

Approaches For Pollution Control”. In this paper, a simple willingness to pay (WTP)

model that shows the theoretical relationships among three valuation approaches that

can be used to measure changes in health resulting from pollution is developed. The

three valuation approaches considered are the contingent valuation (CV), cost of illness

(COI) and the defensive behavior approaches. After showing the relationships between

the three valuation approaches, the model demonstrates that the CV approach exceeds

the COI and the defensive behavior approaches. The theoretical results are supported

by field survey data. The pollution referred to in this paper is direct exposure to

pesticides by farmers during handling and spraying on their farms.

McCubbin and Delucchi, (1999)28“The Health Costs of Motor-Vehicle-Related Air

Pollution”.Motor vehicles have significantly larger health costs than previously reported.

Particulates are the most damaging pollutant, while ozone and other pollutants have

smaller effects. Diesel vehicles cause more damages per mile than dogasoline vehicles,

because of greater particulate emissions. Very fine particles appear more dangerous

than larger particles, and combustion particles appear more dangerous than road dust.

Chen and Vine (1999)29“A Scoping Study on the Costs of Indoor Air Quality Illnesses:

Ann Insurance Loss Reduction Perspective”. This paper reports on the results of a

literature search of buildings-related, business and legal databases, and interviews with

insurance and risk management representatives aimed at finding information on the

direct costs to the insurance industry of poor building IAQ, as well as the costs of

litigation. The literature search turned up little specific cost information, but indicated

that there is strong awareness and growing concern over the silent crisis of IAQ and its

potential to cause large industry losses. The source of these losses includes both direct

27Clevo Wilson (1999) A WTP Model Showing The Relationships Between Three Approaches For Pollution Control published by Department of Economics, University of Queensland. 28McCubbin, Donald R., Mark A. Delucchi, (1999) .The Health Costs of Motor-Vehicle- Related Air Pollution., Journal of Transport Economics and Policy, 33(3), 253-286. 29Chen, Allen and Edward L. Vine, (1999).A Scoping Study on the Costs of Indoor Air Quality Illnesses: An Insurance Loss Reduction Perspective., Environmental Science and Policy, 2, 457-464.

Chapter- 2- Review of Literature

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costs to insurers from paying health insurance and professional liability claims as well

as the cost of litigation.

Alberini and Krupnick (1998)30, have worked the study “Air Quality and Episodes of

Acute Respiratory Illness in Taiwan Cities: Evidence from Survey Data”. The paper

reports on a unique study that records daily health status for over nine hundred

residents of three urban areas in Taiwan and elicits their willingness to pay to avoid

episodes of illness. Incidence of illness is related to the ambient concentration levels of

particulate matter but the effects are much less pronounced than would be expected

from earlier U.S. studies. Willingness to pay to avoid illness is considerably higher than

that predicted by extrapolations of U.S. studies that rely on simple income adjustments.

Alberini, et al., (1997)31, in their study “Valuing Health Effects of Air Pollution in

Developing Countries: The Case of Taiwan”, conducted a contingent valuation survey in

Taiwan to elicit willingness to pay (WTP) to avoid a recurrence of the episode of acute

respiratory illness experienced by the respondent. They estimated a model in which

willingness to pay depends on the attributes of the illness (duration and number of

symptoms, and nature of the illness) and on respondent characteristics (such as income

and health history), and allow mitigating behavior to be endogenously determined with

willingness to pay.

30Alberini, Anna; Krupnick, Alan J. (1998).Air Quality and Episodes of Acute Respiratory Illness in Taiwan Cities: Evidence from Survey Data in Journal of Urban Economics (44). 31Alberini, Anna, Cropper, Maureen, Fu, Tsu-Tan, Krupnick, Alan, Liu, Jin-Tan, Shaw, Daigee, Harrington, Winston (1997)Valuing Health Effects of Air Pollution in Developing Countries: The Case of Taiwan”

Chapter- 2- Review of Literature

Page | 36

TABLE 2.1

NATIONAL & INTERNATIONAL LITERATURE REVIEWS

S.No YEAR TITLE OF THE STUDY AUTHOR’S STUDY

AREA

JOURNAL/

Reference Link

OBJECTIVE FINDINGS

1 2009 A Preliminary Estimate of

Immediate Cost of

Chikungunya and

Dengue to Gujarat, India

Mavalankar

et. al.

Gujarat,

India

IIMA Working Papers

www.iimahd.ernet.in/publications/data/2009-01-01Mavalankar.pdf

Estimated the

cost of

chikungunya and

dengue

The total cost of

chikungunya and dengue to

Gujarat has been estimated

to be 3.7 billion rupees per

annum.

2 2008 Cost of illness: Evidence

from a study in five

resource-poor locations

in India

Dorr. et. al. India Indian Journal of

Medical

Researchwww.nc

bi.nlm.nih.gov/pub

med/18577789

Determination of

cost of illness

episode and

parameters

affecting cost.

The median cost of one

illness episode was INR

340. The ratio of direct

costs to indirect costs was

67:30.

Chapter- 2- Review of Literature

Page | 37

3 2007

Willingness to pay for

health insurance among

rural and poor persons:

Field evidence from

seven micro health

insurance units in India

Dorr. et. al. India papers.ssrn.com/s

ol3/papers.cfm?a

bstract_id=10171

0

This study provide

evidence

Willingness to

pay.

The study resulted that

about two-thirds of the

sample agreed to pay at

least 1%; about half the

sample was willing to pay at

least 1.35%; 30% was

willing to pay about 2.0% of

annual HH income.

4 2006 Valuation of Urban Air

Pollution: A Case Study

of Kanpur City in India

Usha Gupta Uttar

Pradesh

India

Environmental &

Resource

Economics

To estimates the

monetary benefits

to individual from

health damages .

The study estimates that a

representative individual

from Kanpur would gain `

165 per year if air pollution

was reduced to a safe level.

Chapter- 2- Review of Literature

Page | 38

5 2003 Impact of air pollution on

Human Health in

Dehradun City

A. Gupta .et Uttrakhand

India

NA To analyze the air

pollution level in

the Dehradun and

its health effect.

Study conclude that the

level of air pollution has

increased rapidly as well as

the reported cases of ill

health.

6 2002 Impact of Air Quality on

Human Health: A Case of

Mumbai City

P.Ravi

Shankar

andG.Rama

Rao.

Maharashtra

India

Paper presented

at the IUSSP

Regional

Conference on

Southeast Asia’s

Population in a

Changing Asian

To find out the

linkage between

the level of air

pollution and

health status in

Mumbai city

The results of the study

suggested that Air pollution

is consistently increasing

over the past two and half

decades and it also

indicated that significant

health differentials exist

between a high-polluted

area and a low or less

polluted area.

7 2001 Economic valuation of

health impacts of air

Anjali

Srivastava

Maharasthra

India

http://www.ncbi.

nlm.nih.gov/pub

Toestablish dose-

response

relationship of

The study shows that the

avoidance cost is 29% of

the total health damage

Chapter- 2- Review of Literature

Page | 39

pollution in Mumbai and Rakesh

Kumar

med/12002282 Ambient Air

Quality Index and

human health

cost.

8 2000 National burden of

disease in India from

indoor air pollution

Smith et. al. India Proceedings of

the National

Academy of

Sciences of the

United States

of America

www.pnas.org/content/97/24/13286.full.pdf

This paper

evaluates the

existing

epidemiological

studies and

applies the

resulting risks to

the more than

three-quarters of

all Indian

households

dependent on

various fuels.

The study result shows that

around 400–550 thousand

premature deaths can be

attributed annually to use of

biomass fuels in these

population groups. Using a

disability-adjusted lost life-

year approach, the total is

4–6%of the Indian national

burden of disease, placing

indoor air pollution as a

major risk factor in the

country.

9 1997 The Health Benefits of Air

Pollution Control in Delhi

Cropper

et.al.

Delhi, American

Journal of

The impact of air

pollution on

This study found that the

pollution affect all the age

Chapter- 2- Review of Literature

Page | 40

India Agricultural

Economics

http://www.econ.

umd.edu/resear

ch/papers/137

deaths by

different age

group.

group except zero to four

and very old sixty five

above.

INTERNATIONAL LITERATURE REVIEWS

S.

NO

YEAR TITLE OF THE STUDY AUTHOR’S STUDY

AREA

JOURNAL OBJECTIVE FINDINGS

1 2008 Comparison of cost-of-

illness with willingness-

to-pay estimates to

avoid shigellosis:

evidence from China

SoyeonGuh

, et al.

China Health Policy

and Planning

To measure the

economic benefits

of disease.

Study resulted that WTP to

avoid additional cases in

children aged 0–5 years is

higher than in adults.

2 2008 Costs of Illness Among

Older Adults: An

Analysis of Six Major

George et

al.

USA http://www.rti.o

rg/pubs/rr-

0002-0809-

This study

estimates the

annual cost burden

Total estimated aggregate costs

range from $0.5 billion

(gastrointestinal illness) to

Chapter- 2- Review of Literature

Page | 41

Health Conditions with

Significant

Environmental Risk

Factors

vanhoutven.pdf associated with six

major illnesses

among the aged 65

or older population

in the United

States: chronic lung

disease, ischemic

heart.

almost $60 billion (ischemic

heart disease). The combined

costs of these conditions among

the aged 65 or older population

in 2000 were almost $135

billion.

3 2008 Societal costs of air

pollution-related health

hazards: A review of

methods and results

Tanjima

Pervin et.

al.

Sweden RTI Press

publication

To determine the

societal costs of air

pollution.

The present paper conducts a

systematic review focusing on

the total societal costs

associated with air pollution-

related ill health (CAP).

4 2008 Estimating the

uncertainty of damage

costs of pollution: A

simple transparent

method and typical

Spadaro

and Rabl

France Environmental

Impact

Assessment

Review

To consider the

damage of air

pollution.

This paper shows that most of

the uncertainty calculation

involves products and/or sums

of products and can be

accomplished with an analytic

Chapter- 2- Review of Literature

Page | 42

results solution which is simple and

transparent.

5 2007 Evaluation of Total Cost

of Air Pollution Due to

Transportation in

Canada

Dave

Sawyer et.

al.

Canada Government of

Canada

Publications

To measures the

economic value of

transport-caused air

pollution.

This study provides credible

estimates of the total costs of

transport-caused air pollution in

Canada in the year 2000.

6 2007 The Willingness to Pay

for the Health Care

under Taiwan’s National

Health Insurance.

Wen-Yi

Chen et. al.

Taiwan International

Health

Economics

Association

Estimate the

willingness to pay

(WTP) values for

different National

Health Insurance

coverage plans in

Taiwan.

In the study it was found that

WTP value for having care from

clinics in a hospital care only

plan is NT$178 (US$6) per

person/month.

7 2004 Rich-Poor Differences in

Health Care Financing

Alexander

et. al.

USA WHO To estimate the

health care facilities

among the different

countries.

In the study it was found that in

most of the community finance

schemes have evolved in the

context of severe economic

Chapter- 2- Review of Literature

Page | 43

constraints, political instability,

and lack of good governance.

8 2007 Evaluation of Total Cost

of Air Pollution Due to

Transportation in

Canada

Dave

Sawyer et.

al

Canada publications.gc

.ca/collections/

collection_200

8/.../T22-148-

2007E.pdf

To estimate the

transportation

pollution and it

health effects.

The study indicated that the

transportation sector comprises

a significant proportion of the

total emissions for all the

relevant pollutants

9 2004 A WTP Model Showing

the Relationships

Between Three

Approaches For

Pollution Control

Wilson WHO, USA Discussion

Papers

Series,School

of Economics,

University of

Queensland,

Australia

To consider the

contingent valuation

(CV), cost of illness

(COI) and the

defensive behavior

approaches.

Study demonstrates that the CV

approach exceeds the COI and

the defensive behavior

approaches.

10 2003 Cost of illness of

moderate to-severe

atopic asthma and/or

B. Schramm

et. al.

Germany http://www.ncbi

.nlm.nih.gov/pu

bmed/1257011

To evaluate the

cost of illness of

moderate-to-severe

Annual costs of severe asthma

plus SAR increased to

Euro7,928 per child/adolescent

Chapter- 2- Review of Literature

Page | 44

seasonal allergic rhinitis

(SAR) in Germany

9 atopic asthma

and/or seasonal

allergic rhinitis

(SAR) in Germany.

and to Euro9,287 per adult.

11 2002 Economic Status and

Health in Childhood:

The Origins of the

Gradien

Anne Case

et at.

Princeton,

NJ

The American

Economic

Review

Vol. 92, No. 5

(Dec., 2002),

pp. 1308-1334

To study the

association

between house

hold income and

child health.

The study resulted that children

from lower income households

with chronic conditions have

worse health than to those from

higher-income households.

12 2001 Indoor air pollution in a

zone of extreme poverty

of metropolitan Santiago

Caceres. et

at.

Santiago,

Chile

Indoor and

Built

Environment

May 2001 vol.

10 no. 3-4 138-

146

To find the affects

of various level of

pollutants on

human health in the

city.

The study found that inchildren

younger than 2 years, most

respiratory diseases occur

during winter (75%), themost

frequent complaint being

bronchitis (62%) and obstructive

bronchitis (50%).

Chapter- 2- Review of Literature

Page | 45

13 2000 Economic evaluation of

health impacts due to

road traffic-relatedair

pollution (An impact

assessment project of

Austria, France and

Switzerland)

H. Sommer,

et al.

European

Union (EU)

http://www.oec

d.org/dataoecd

/32/21/205449

3 .pdf

The study assessed

the health costs of

road-traffic related

air pollution in the

three countries.

The study resulted that in all

three countries together bear

some 49’700 million EUR1of air

pollution related health costs, of

which some 26’700 million EUR

are road-traffic related. In each

country, the mortality costs are

predominant, amounting to more

than 70 %.

14 2000 Cost-of-Illness and

Willingness-to-Pay

Estimates of the

Benefits of Improved Air

Quality: Evidence from

Taiwan

Alberini and

Krupnik

Taiwan The Board of

Regents of the

University of

Wisconsin

System, Vol.

76, No. 1

(Feb., 2000),

pp. 37-53

The study

compared COI and

WTP estimates of

the damages from

minor respiratory

symptoms

associated with air

pollution.

The study found that the WTP is

more than COI, which was near

to 1.61 to 2.26 times more.

Chapter- 2- Review of Literature

Page | 46

15 2000 Assessing Health

Impacts of Air Pollution

from Electricity

Generation: The Case of

Thailand

Thanh and

Lefevre

Thailand Environmental

Impact

Assessment

Review.

Volume 20,

Issue 2, April

2000, Pages

137–158

To estimate health

impacts and

corresponding

damage costs of

various air

pollutants from four

power units using

different fuels at

four locations in

Thailand.

The study results shows that the

damage cost related to health

effects of electricity generation

in Thailand are relatively small,

but not negligible, ranging from

0.006 U.S. cent to 0.05 U.S.

cent per kilowatt-hour.

16 2000 The Economic Burden

of COPD

Sean D.

Sullivan et

al

Washington

, Seattle,

WA

CHEST

February 2000

vol. 117 no. 2

supply 5S-9S

To study the

impact of COPD on

individuals and

society.

The study estimated that the

direct treatments for COPD-

related illness accounted for

$14.7 billion, and the remaining

$9.2 billion were indirect

morbidity and premature

mortality estimated as lost future

earnings.

Chapter- 2- Review of Literature

Page | 47

17 1999 The Economics of Air

Pollution Health Risks in

Russia: A case study of

Volgograd

Larson,

Avaliani. et.

al

Volgograd,

Russia

World

Development,

Vol 27(1999).

1803-1819

To study the health

risk assessment by

cost-effectiveness

analysis, and

benefit-cost

analysis

The study resulted that the total

net benefits to the city of

implementing five of the six

identified projects, leading to

roughly a 25% reduction in

mortality risk, are estimated to

be at least $40 million in present

value terms

18 1999 A WTP Model Showing

The Relationships

Between Three

Approaches For

Pollution Control

Clevo

Wilson

Queensland

, Australia

espace.library.uq.

edu.au/eserv/UQ:

11072/DP268Dec

99.pdf

To study the

theoretical

relationships

among three

valuation

approaches

contingent valuation

(CV), COI and the

defensive behavior

approaches.

The study demonstrates that the

CV approach exceeds the COI

and the defensive behaviour

approaches.

Chapter- 2- Review of Literature

Page | 48

19 1999 The Health Costs of

Motor-Vehicle-Related

Air Pollution

McCubbin

and

Delucchi

California,

USA

Journal of

Transport

Economics and

Policy. Vol. 33,

No. 3 (Sep.,

1999), pp. 253-

To study the health

cost due to air

pollution caused by

motor vehicles

The study found that diesel

vehicles cause more damages

per mile than dogasoline

vehicles, because of greater

particulate emissions. Very fine

particles appear more

dangerous than larger particles,

and combustion particles appear

more dangerous than road dust.

20 1999 A Scoping Study on the

Costs of Indoor Air

Quality Illnesses: Ann

Insurance Loss

Reduction Perspective

Chen and

Vine

North

Carolina,

USA

http://www.airi

mpacts.org/doc

uments/local/ai

r_pollution_and

_health.pdf

To study the results

of literature related

to cost of illness.

The study searched the little

specific cost information, but

indicated that there is strong

awareness and growing concern

over the silent crisis of IAQ and

its potential to cause large

industry losses.

Chapter- 2- Review of Literature

Page | 49

21 1998 Air Quality and Episodes

of Acute Respiratory

Illness in Taiwan Cities:

Evidence from Survey

Data

Alberini and

Krupnick

Washington

, DC, USA

Journal of

Urban

Economics,

Vol. 44, Issue

1, July 1998,

Pages 68–92

To study the health

status and

willingness to pay

to avoid episodes of

illness.

The study found that the

Willingness to pay to avoid

illness is considerably higher

than episodes of illness.

22 1997 Valuing Health Effects of

Air Pollution in

Developing Countries:

The Case of Taiwan

Alberini, et

al.,

Taiwan Journal of

Environmental

Economics and

Management.

Vol. 37(1997)

pp.107-126

To study the CV

and WTP value.

This study investigated the

value of reducing illness in

Taiwan and related

methodological issues.

Chapter- 2- Review of Literature

Page | 50

The studies taken into consideration for the related area of the research have further

been classified on the basis of the study for which they were primarily under taken.

These objective have been broadly classified into four categories:

1. Studies considering air pollution and its effects.

2. Studies based to estimate cost of illness.

3. Studies related to determine willingness to pay for health care.

4. Studies considering cost of illness and willingness to pay.

These studies have been presented in the following tables 2.2, 2.3, 2.4, and 2.5

respectively.

The table 2.2 shows that in the past few years there has been a great awareness

among the researchers to analyses the impact of air pollution on human health. The

table shows that various authors have around the taken up the above aspect in the

study as thrust area of research.

The table 2.3 shows that large number of study has been based on determination of

cost of illness due to air pollution and other factors. A large number of study has

been carried in abroad India and few studies has been carried out in India

particularly for the cities like Kanpur, Dehradun and the state of Gujarat. No such

study was carried out in Agra, which is one of the major tourist place of India and

highly polluted.

The table 2.4shows, only four studies has been carried out specially on willingness

to pay model. Out of the four studies only a single study has been carried out in

India.

The table 2.5 shows that there were only five studies which have considered both

cost of illness and willingness to pay approach. Out of these five studies none of the

study considering both the aspect have ever been carried out in India.

Chapter- 2- Review of Literature

Page | 51

TABLE 2.2

LITERATURE REVIEWS – ON THE BASIS OFAIR POLLUTION AND ITS EFFECTS

S.

NO YEAR TITLE OF THE STUDY AUTHOR’

S

STUDY

AREA

1 2003 Impact of air pollution on Human Health in Dehradun City

A. Gupta .et

Uttrakhand

India

2 2001 Economic valuation of health impacts of air pollution in Mumbai

Anjali Srivastava

and Rakesh Kumar

Maharasthra

India

3 2000 National burden of disease in India from indoor air pollution

Smith et. al. India

4 1997 The Health Benefits of Air Pollution Control in Delhi

Cropper et.al.

Delhi,

India

5 2008

Estimating the uncertainty of damage costs of pollution: A simple transparent method and typical results

Spadaro and Rabl

France

6 2007 Evaluation of Total Cost of Air Pollution Due to Transportation in Canada

Dave Sawyer et.

al Canada

7 2001 Indoor air pollution in a zone of extreme poverty of metropolitan Santiago

Caceres. et at.

Santiago, Chile

Chapter- 2- Review of Literature

Page | 52

TABLE – 2.3

LITERATURE REVIEWS – ON THE BASIS OF COST OF ILLNESS

S.

NO YEAR TITLE OF THE STUDY AUTHOR’S

STUDY

AREA

1 2009

A Preliminary Estimate of Immediate

Cost of Chikungunya and Dengue to

Gujarat, India

Mavalankar

et. al.

Gujarat,

India

2 2008 Cost of Illness: Evidence from a study

in five resource-poor locations in India Dorr. et. al. India

3 2006 Valuation of Urban Air Pollution: A

Case Study of Kanpur City in India Usha Gupta

Uttar

Pradesh

India

4 2003 Impact of air pollution on Human

Health in Dehradun City A. Gupta .et

Uttrakhand

India

5 2008

Costs of Illness Among Older Adults:

An Analysis of Six Major Health

Conditions with Significant

Environmental Risk Factors

George et

al. USA

6 2008

Societal costs of air pollution-related

health hazards: A review of methods

and results

TanjimaPer

vin et. al. Sweden

7 2007

Evaluation of Total Cost of Air

Pollution Due to Transportation in

Canada

Dave

Sawyer et.

al.

Canada

Chapter- 2- Review of Literature

Page | 53

8 2004 Rich-Poor Differences in Health Care

Financing

Alexander

et. al. USA

9 2003

Cost of illness of moderate to-severe

atopic asthma and/or seasonal

allergic rhinitis (SAR) in Germany

B.

Schramm

et. al.

Germany

10 2002 Economic Status and Health in

Childhood: The Origins of the Gradien

Anne Case

et at.

Princeton,

NJ

11 2000

Economic evaluation of health

impacts due to road traffic-relatedair

pollution (An impact assessment

project of Austria, France and

Switzerland)

H. Sommer,

et al.

European

Union (EU)

12 2000

Assessing Health Impacts of Air

Pollution from Electricity Generation:

The Case of Thailand

Thanh and

Lefevre Thailand

13 2000 The Economic Burden of COPD

Sean D.

Sullivan et

al

Washington,

Seattle, WA

14 1999 The Health Costs of Motor-Vehicle-

Related Air Pollution

McCubbin

and

Delucchi

California,

USA

15 1999

A Scoping Study on the Costs of

Indoor Air Quality Illnesses: An

Insurance Loss Reduction

Perspective

Chen and

Vine

North

Carolina,

USA

Chapter- 2- Review of Literature

Page | 54

TABLE – 2.4

LITERATURE REVIEWS – ON THE BASIS OF WILLINGNESS TO PAY

S.

NO YEAR TITLE OF THE STUDY AUTHOR’S

STUDY

AREA

1 2007

Willingness to pay for health insurance

among rural and poor persons: Field

evidence from seven micro health

insurance units in India

Dorr. et. al. India

2 2007

The Willingness to Pay for the Health

Care under Taiwan’s National Health

Insurance.

Wen-Yi

Chen et..

al.

Taiwan

3 1999

A WTP Model Showing The

Relationships Between Three

Approaches For Pollution Control

Clevo

Wilson

Queensl

and,

Australia

4 1998

Air Quality and Episodes of Acute

Respiratory Illness in Taiwan Cities:

Evidence from Survey Data

Alberini and

Krupnick

Washing

ton, DC,

USA

TABLE – 2.5

LITERATURE REVIEWS – ON THE BASIS OF WILLINGNESS TO PAY & COST OF ILLNESS

S.

NO YEAR TITLE OF THE STUDY AUTHOR’S

STUDY

AREA

1 2004 A WTP Model Showing the

Relationships Between Three Wilson

WHO,

USA

Chapter- 2- Review of Literature

Page | 55

Approaches For Pollution Control

2 2000

Cost-of-Illness and Willingness-to-

Pay Estimates of the Benefits of

Improved Air Quality: Evidence

from Taiwan

Alberini and

Krupnik Taiwan

3 1999

The Economics of Air Pollution

Health Risks in Russia: A case

study of Volgograd

Larson,

Avaliani. et. al

Volgogr

ad,

Russia

4. 1997

Valuing Health Effects of Air

Pollution in Developing Countries:

The Case of Taiwan

Alberini, et al., Taiwan

5 2008

Comparison of cost-of-illness with

Willingness-to-pay estimates to

avoid shigellosis: Evidence from

China

Soyeon Guh, et

al. China

The above fact shows that there is vital scope for research in this area. Therefore,

this study attempt to focus upon the cost of illness due to air pollution and measures

the willingness to pay.