An Economic Analysis of Air Quality and its Impacts in the United Arab Emirates

Abstract

The United Arab Emirates (UAE) has witnessed unprecedented demographic and economic growth since its independence from the United Kingdom in 1971. This growth has been fueled by abundant reserves of oil, but it has also come at a significant cost to the environment. The UAE has some of the world’s highest electricity consumption rates per capita, due in large part to extreme heat and a reliance on desalination for clean drinking water. The country therefore has high levels of air pollution, caused by factors such as the flaring of natural gas and industrial activity. This air pollution poses a serious threat to public health, one that also demonstrably serves to undermine its economy through the loss of lives and economic productivity from its working society. In establishing and quantifying the connection between air quality and loss of disability adjusted life years (DALY), this thesis serves to economically analyze the cost of atmospheric pollution and subsequently determine how the UAE urgently needs to strive for cleaner air to ensure a safer environment and more prosperous economy.