We most certainly can! Air pollution particularly has a large effect on children and elderly people. It can lower cardiopulmonary health and even cause premature death in some cases. The obvious societal costs would be with the elderly and Medicaid. Below is an extremely detailed paper relating the healthcare costs to air pollution.
Yes, air pollution causes health externalities. These costs include asthma, pneumonia, bronchitis, chronic obstructive pulmonary disease, and other respiratory illnesses. Between 2005 and 2007, California air pollution caused an estimated 30,000 hospital and emergency room visits. Additionally, in California alone, $193 million in health care was spent to alleviate societal health costs of air pollution.
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