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Published online by Cambridge University Press: 21 November 2024
This chapter discusses the extent to which standard economic efficiency analysis can be applied to the economics of reducing ill health caused by environmental factors. This type of analysis is relevant when production functions can be applied to public health environmental situations such as those involving the public supply of safe water and sanitation. On the other hand, different analytical approaches are required to assess more holistically the social economic efficiency of public policies to control most environmentally related diseases. Concrete theoretical evidence about the analytical significance of the presence of externalities is backed up with examples. These cases include cadmium poisoning, drinking water contaminations, issues involved in the control of COVID-19, and the willingness of individuals to vaccinate against infectious diseases. In addition, particular attention is paid to problems involved in determining the social economic efficiency of the amount and use of methods of controlling environmentally related diseases when their effectiveness declines with use.
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