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The Health Costs of the Brick Kilns Emissions in Peshawar: A policy Analysis

Air Pollution especially resulting from Brick kiln is a major Environmental problem of Pakistan in general and Peshawar in Particular. World Health Organization in a recent document has declared Peshawar as the sixth most polluted city of the world. We in our latest study have tried to estimate the health cost related to the release of PM10 from these kilns. For the said purpose, we collected primary data pertaining to pollution and socio-economic of the brick producing and nearby areas. We collected socio economic data from respondents living within 3 kilometer of the kilns and also from a control group which were further away. Sample size was set at two hundred households, i.e. one hundred households were taken from the kilns group and another100 samples from the control group. We have used health diary method to collect health information from the respondents. We have estimated two reduced form equations, i.e., health production function and demand for mitigation cost using Poisson and Tobit regression models. The PM10 level in the kilns region was very high it was at average level is 415ug/m3, and the control group the PM10 level is low it was 180 ug/m 3 . Our regression analysis estimated that by reducing PM10 to safe level, every individual can save PKR 3315 (or USD 31) per annum through only mitigation cost. Total welfare gain to reduce air quality to safe level through mitigation cot for district Peshawar is PKR 6692.985 million or (PKR 6.7 billion) per annum (USD 63.44 million). Besides, the productivity loss by individuals is estimated as .36 day per annum. The monetary benefit to avoid from the restricted day of working is PKR 198 for one household whereas for the city the monetary benefit of bringing down the PM10 level is PKR 107.935 million (or USD 1.023 million). The study is suggesting implementing of the ban on the use of rubber as a fuel in these bricks kiln. The study also recommends that these kiln owners be punished/ taxed as per section 17 of the 1997 Environmental act.