Title page

Contents

Acknowledgments 2

Executive summary 4

Introduction 6

CHAPTER 1. Measuring air pollution in Tbilisi 8

CHAPTER 2. The spatial distribution of air pollution and wealth in Tbilisi 12

CHAPTER 3. Sources of variation in outdoor air pollution in Tbilisi 14

CHAPTER 4. The impacts of outdoor air pollution in Tbilisi 20

CHAPTER 5. The benefits of carbon pricing: reductions in outdoor air pollution 23

CHAPTER 6. The exposure of individuals to air pollution and the associated drivers 26

CHAPTER 7. The impacts of air pollution on individuals 29

CHAPTER 8. The adaptation of individuals to air pollution 31

CHAPTER 9. The impact of information sharing on exposure, behavior, and welfare 33

CHAPTER 10. Policy recommendations 36

Appendix A. Natural experiments: data and methods 38

Appendix B. Randomized controlled trial 40

Appendix C. Fieldwork 43

Appendix D. Additional results 45

References 47

Figure 1. Monthly air pollution level in Tbilisi: above the WHO threshold and higher than in other regional capitals 6

Figure 2. The measurements of the National Environmental Agency and PurpleAir are highly correlated 10

Figure 3. Monthly and weekly trends in outdoor air pollution in Tbilisi 11

Figure 4. Within-day trends in indoor air pollution in Tbilisi during weekdays and weekends 11

Figure 5. Wealthier neighborhoods are associated with higher air pollution, but, within these neighborhoods, the wealthiest individuals live in buildings characterized... 13

Figure 6. Thermal inversions and wind from the south increase PM2.5 concentrations in Tbilisi 14

Figure 7. Emissions from industrial sites significantly increase air pollution in downwind districts 18

Figure 8. Air pollution significantly increases hospitalizations for mental health and respiratory diseases in Tbilisi 20

Figure 9. Increases in PM2.5 , PM10 , NO₂ and O₃ concentrations decrease apartment sale and rental prices in Tbilisi 21

Figure 10. Carbon pricing could decrease traffic by up to 25% by 2030 and yield improvements in air quality 24

Figure 11. The estimated benefits of carbon pricing in health 25

Figure 12. Indoor and outdoor air pollution measured at the time of the survey, by wealth and education status 26

Figure 13. Number of days working outdoors and hours exercising outdoors, by wealth and education status 27

Figure 14. Cooking, smoking, and lack of insulation explain variations in indoor air pollution 28

Figure 15. Air pollution adversely affects health in Tbilisi and the number of missed work and school days 29

Figure 16. Air pollution is associated with higher interview duration, particularly among the most well educated 30

Figure 17. Awareness of impacts and adaptive capacity are greater among more well educated and wealthier households 31

Figure 18. More educated and wealthier households are more likely to take actions to mitigate indoor air pollution 32

Figure 19. Indoor air pollution monitors and messages on outdoor air pollution raise household awareness 34

Figure 20. Information on indoor and outdoor air pollution the consequences of exposure reduces adverse health outcomes 35

Maps

Map 1. Data sources provide a fine measure of PM2.5 concentration in the capital 9

Map 2. In Tbilisi, PM2.5 concentration is negatively correlated with elevation and positively correlated with wealth 12

Map 3. Traffic congestion is extremely high in the center of the city, and hot spots suffer from higher air pollution 15

Map 4. Air pollution and seasonal variations are greatest in areas where industrial site emissions are also greatest, Tbilisi 17

Table B.1. RCT treatment groups receiving different types of information on air pollution 41

Figure B.1. The covers of the booklet supplied to the treatment households 41

Figure D.1. Air pollution affects cognition adversely 45

Figure D.2. Scores on national unified entry examinations decline with air pollution in the previous month 46

Figure D.3. Air pollution significantly reduces apartment rental prices non homogeneously, Tbilisi 46

Appendix Maps

Map B.1. Selected census blocks for surveying and installation of outdoor monitors 42