This project applied Return-on-Investment Analysis to identify sector-specific interventions, assess their cost-effectiveness, and prioritise those with the highest financial returns and feasibility, supporting evidence-based decisions for effective air quality management.
Background
Ambient Air Pollution poses severe morbidity and mortality risks and is considered a significant threat in low- and middle-income countries, especially India. Prolonged exposure to pollutants like PM 2.5 is associated with health costs such as respiratory and cardio-vascular illnesses and even premature death. Lost output from premature mortality and morbidity account for economic losses due to fall in productivity, absenteeism, and impaired quality of life. While cities have overlapping strategies, it is imperative to align actions with source apportionment studies and evidence-based resource allocation. The investment case justifies the needs-based allocation of limited resources for efficient air pollution control and acts as a strategic road map, bringing stakeholders together.
Under the EU-UNDP collaborative global project, ‘Advancing Health and Environmental Sustainability through Action on Air Pollution’, LEAD collaborated with the Centre for Chronic Disease Control (CCDC) and Post Graduate Institute for Medical Education and Research (PGIMER) to calculate the health costs of inaction on air pollution related to NCDs and assess the return on investment (RoI) for selected cost-effective and nationally prioritised interventions.
Objectives
The study piloted UNDP’s first of its kind global methodology for developing an investment case for air pollution mitigation in our study sites, Amritsar and Gurugram, India. The primary objectives of the study were to:
- To propose potential interventions aimed at mitigating ambient PM 2.5 in Amritsar and Gurugram through a structured methodology: i. Scoping of city–level source apportionment studies and city level action plans ii. Conduct stakeholder consultations to pinpoint pertinent interventions.
- To adapt the United Nations Development Programme’s (UNDP) Return on Investment (ROI) framework to create a contextualised investment strategy for addressing air pollution in India through: i. Estimating the cost and impacts of identified interventions. ii. Quantification of the health and economic benefits attributable to ambient air pollution in “Intervention” and “No Intervention/Business-as-usual” scenarios. iii. Determining the return on investment for the identified interventions to facilitate the prioritisation of future actions.
Approach
A step-wise approach was adopted to conduct a return-on-investment case for pollution mitigation. Sector specific interventions were first identified using source-apportionment studies. Relevant cost components were identified and a stakeholder mapping exercise was conducted, securing appointments with relevant government officials or stakeholders in Amritsar and Gurugram and in-person data collection was conducted. Costs and effectiveness estimated were modelled. The disease and economic burden were modelled to understand prioritisation of interventions considering the contextual feasibility analysis that was conducted.
Implications
The study’s findings offers valuable insights into which interventions deliver the greatest financial returns, thereby supporting evidence-based decision-making for effective air quality management. Air pollution mitigating strategies can contribute to climate co-benefits, aligning with India’s long-term sustainability goals.
Related Resources
Report: Investment Case Study for Air Pollution in India, Amritsar and Gurugram, India