The Impact of Air Pollution on Decent Living Standards: Evidence from a District-Level Panel Data

Amrutha G S, International Institute for Population Sciences (IIPS)
Arup Jana, International Institute for Population Sciences (IIPS)
Michael Kuhn, Vienna Institute of Demography
Omkar Patange, International Institute for Applied Systems Analysis
Shilpa Rao, Norwegian Institute of Public Health

Air pollution significantly affects health and well-being, particularly in lower socio-economic groups, with developing countries like India being highly vulnerable due to weak regulations, rapid urbanization, and industrialization. This study explores the impact of air pollution on well-being in India by analyzing district-level panel data from the 4th (2015-16) and 5th (2019-21) National Family Health Surveys, combined with satellite data on PM2.5 levels. The study constructs a Decent Living Standard Index (DLSI) to assess well-being, considering factors like household environment, amenities, economy, and education across 656 districts in two time periods. The analysis shows a negative association between PM2.5 levels and living standards, with each unit increase in PM2.5 concentration reducing the mean DLSI by 0.009 units. This relationship holds even after controlling for urbanization and age. The study underscores the detrimental effects of air pollution on well-being. It highlights the need for targeted policies to mitigate air pollution and improve living standards, particularly in developing countries like India.

Keywords: Population, Environment, and Climate Change, Population and Development, Linked data sets , Health and Morbidity

See extended abstract.