EXTERNAL HEALTH COSTS OF A STEEL MILL

Intermittent operation of a steel mill in a mountain valley in central Utah provides a unique opportunity to measure the external health cos ts of air pollution. A nearby valley provides a control. This paper an alyzes data on hospital admissions and daily deaths for the two valley s, using negative binomial regression models of daily hospital admissi ons and deaths. Hospital admissions for respiratory diseases increase significantly when the mill is in operation. Mortality also increases during mill operation. Estimated excess hospitalization costs are abou t 2 million dollars per year, and the increased cost of mortality exce eds 40 million dollars per year.