Putting a Price on Health: The External Costs of Environmental Damage

Environmental damage, including climate change, affects health in ways that are often absent from market prices and investment decisions. Air pollution, heat stress, noise, extreme weather events and other environmental pressures generate real costs for individuals, healthcare systems, cities and economies — yet these external costs are rarely fully accounted for. This session explores how health-based valuation and willingness-to-pay can make these hidden costs visible and support better policy and investment choices. Drawing on results from the MARCHES project and beyond, it will present cost-benefit assessments of measures that reduce environmental pressures in Tallinn, including their net present value (NPV). The session will also examine public acceptance of these measures, connecting economic evidence with the social conditions needed for successful implementation.