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Title: PM2.5 Pollution from Oil and Gas Activity in the Permian Basin: An Economic Analysis of its Human Health Impacts and Damages 1
Citation Type: Miscellaneous
Publication Year: 2023
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Abstract: Particulate matter that is less than 2.5 micrometers in diameter, known as PM2.5, is among the most damaging air pollutants to human health. The peer-reviewed literature shows that exposure to PM2.5 can lead to cardiovascular and respiratory diseases and premature mortality. Ongoing oil and gas (O&G) activity in the Permian Basin region of New Mexico and Texas is a known source of PM2.5 pollution through emissions of precursor pollutants. Against this backdrop, there are clear challenges and opportunities for addressing the public health impacts and associated economic damages of PM2.5 from the Permian Basin O&G sector, including opportunities to better understand the scale and scope of the PM2.5 problem in this region. In this white paper, we undertake a four-phase study of PM2.5 pollution from O&G activity in the Permian Basin. Phase 1 undertakes a location-specific analysis of O&G emissions of PM2.5 precursors (VOC, NOX, SO2, and primary PM2.5), including an investigation of emissions trends over time. Phase 2 investigates spatial and temporal trends in total ambient PM2.5 pollution concentrations in the Permian Basin region to provide context for how the O&G sector has affected pollution levels in the area. Phase 3 uses an attribution analysis to connect O&G precursor emissions to PM2.5 concentrations, allowing us to identify the contribution of the O&G sector to PM2.5 in the Permian Basin and in regions beyond. Finally, Phase 4 estimates the human health impacts and associated dollar-denominated damages of PM2.5 attributable to Permian Basin O&G emissions. Three key findings emerge: 1. Emissions from O&G activity contribute, on average, 27.5% of PM2.5 concentrations in the Permian Basin, over 2011-2017. We find that VOC emissions from O&G activity are the largest source of PM2.5 precursor emissions, primarily from oil well tanks. 2. In 2017, the most recent year of data available, we estimate that, nationwide, 638 premature deaths were associated with PM2.5 from the Permian Basin O&G sector. The majority of these deaths occurred outside of the Permian Basin, indicating that O&G activity is impacting human health in both local and distant communities. 3. Nationwide, the total premature mortality damages of Permian Basin O&G-sourced PM2.5 were $6.57 billion (in 2022 inflation-adjusted dollars) in 2017. We estimate that for each $1 in revenue generated from the sale of oil and gas in the Permian Basin in 2017, $0.11 in damages were created nationwide from premature mortality associated with PM2.5 from O&G activity in the basin. Given concerns about the PM2.5 pollution impacts of O&G activity in the Permian Basin, this work provides a rigorous assessment of the magnitude and scale of the problem, for the first time. Considerations of the human health impacts and economic damages of PM2.5, including the 3 sources and types of emissions of primary concern, are important factors that should influence how the Permian Basin states of New Mexico and Texas approach regulations and policies aimed at mitigating the harms from O&G activity. We offer this white paper as evidence-based admissible information for ongoing air pollution policy discussions in the Permian Basin.
Url: https://econ.unm.edu/common/documents/2023nm-research_goodkind-etal.pdf
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Authors: Goodkind, Andrew L; Jones, Benjamin A; Leek, Casey L
Publisher: University of New Mexico - Department of Economics
Data Collections: IPUMS NHGIS
Topics: Health, Natural Resource Management
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