There are two main types of air pollution -ambient air pollution (outdoor pollution) and household (or indoor) air pollution refers to pollution generated by household combustion of fuels (caused by burning fuel such as coal, wood or kerosene) using open fires or basic stoves in poorly ventilated spaces. Both indoor and outdoor air pollution can contribute to each other, as air moves from inside buildings to the outside, and vice versa.

Household air pollution kills 4 million people a year and tends to affect countries inAfricaandAsia, where polluting fuels and technologies are used every day particularly at home for cooking, heating and lighting. Women and children, who tend to spend more time indoors, are affected the most.

The main pollutants:are (1) particulate matter, a mix of solid and liquid droplets arising mainly from fuel combustion and road traffic; (2) nitrogen dioxide from road traffic or indoor gas cookers; (3) sulphur dioxide from burning fossil fuels; and (4) ozone at ground level, caused by the reaction of sunlight with pollutants from vehicle emissions. The pollutant that affects people the most is particulate matter (often abbreviated to PM and used as a measure for air pollution).

https://www.who.int/airpollution/news-and-events/how-air-pollution-is-destroying-our-health

a)Why do you think households in Africa and Asia continue to use polluting fuels and technologies for cooking, heating and lighting?

b)Compare incentive based environmental policies to the standards approach.Which one would you recommend and why?

c)What is an externality?How does pollution distort allocation of resources in the economy? Can you think of examples of negative and positive externalities that have arisen due to the current pandemic?