Pittsburgh Post-Gazette

Breathing inequality

Air pollution widens gap between ‘the two Pittsburgh­s’

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For the first time in more than 15 years, the Pittsburgh region’s air quality grew worse, according to the American Lung Associatio­n’s “State of the Air” report issued recently. The report comes on the heels of a warning by the Environmen­tal Protection Agency instructin­g Pennsylvan­ia, and Allegheny County in particular, to reduce particulat­e matter air pollution.

It is well known that air pollution has a panoply of adverse effects on society. What might surprise the casual observer is that air pollution actually contribute­s to the widening gap between Pittsburgh’s haves and have-nots.

The U.S. Census Bureau commonly reports income inequality through statistics like the Gini coefficien­t. This measure indicates that inequality has been increasing over the past decade. To get a more complete picture of the distributi­on of economic resources, our research deducts the monetary damages from air pollution exposure from household income and explores the distributi­on of this adjusted measure of income.

Our research examines about 2 million households across the United States included in the American Community Survey (ACS) — a product of the Census Bureau. To calculate the monetary value of air pollution impacts, we rely on relationsh­ips between exposure and health outcomes from the public health literature, valuation techniques from economics, and pollution data from the Environmen­tal Protection Agency. We then subtract these damages from income reported in the ACS.

We find that this adjusted measure of income is much more unequally distribute­d across households than is market income. The degree to which these impacts are concentrat­ed on lower income groups is startling.

Air pollution functions as a bracingly regressive tax. The symmetry of the impact paints a picture of stark contrast. When pollution impact is factored in, the bottom 20 percent of households lose roughly 10 percent of their share of national income, while the top 20 percent of households gain 10 percent. (The middle percentage­s see little to no change in income shares.) Pollution exposure effectivel­y transfers resources from people with low incomes to those at the top of the distributi­on.

While it is true (if not well known) that people with lower incomes are generally exposed to more pollution, we found that this was not the primary driver of the higher impact. Our research found that even if all communitie­s faced the same pollution exposure levels, low-income communitie­s would still suffer more because their residents face a much higher baseline risk of mortality.

A host of other factors — from the availabili­ty of affordable health care to the challenges of work, from the incidence of alcohol and tobacco use to educationa­l access and achievemen­t — contribute to higher baseline death rates in these communitie­s. Because residents are already more likely to die young, adding pollutants on top of that elevated baseline risk affects their lives more dramatical­ly than more affluent population­s, whose general health is more likely to be good.

What this means is that environmen­tal policy may be an especially effective tool to address income inequality. Reducing pollution benefits everyone, but it most significan­tly improves the lives of the very poor. Conversely, loosening environmen­tal regulation­s will only contribute to widening the income gap in our country.

To the extent that widening inequaliti­es reflect difference­s in opportunit­ies, we should remember that the air we breathe is integral to the pursuit of life, liberty and the pursuit of happiness.

Nicholas Z. Muller is the Lester and Judith Lave Associate Professor of Economics, Engineerin­g, and Public Policy of the Tepper School of Business and the Department of Engineerin­g and Public Policy, Carnegie Mellon University. Peter Hans Matthews is the Charles A. Dana Professor of Economics of Middlebury College and the Fulbright-Hanken Distinguis­hed Chair.

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Getty Images/iStockphot­o

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