This paper provides a method of estimation of physical and monetary accounts of air pollution from the road transport. Using the data from the secondary sources and a vehicular survey, estimates of annual air pollution abatement cost for the vehicles (passenger cars, trucks, buses and two wheelers) complying with Euro norms are made for the road transport sector in Andhra Pradesh (AP) and Himachal Pradesh HP) states. The pollution abatement cost of each vehicle comprises the cost of upgrading the vehicular technology and the cost of improving fuel quality. For example, this cost estimate is Rs. 32309.54 million for AP in the year 2001-2002 and Rs. 3688. 72 million for HP in the year 2002-2003 at current prices and it forms 2.134 percent and 5.88 percent of State Domestic Product of the respective states.
S. Chatterjee, Dhavala, K., and Maddipati Narsimha Murty, “Estimating Cost of Air Pollution Abatement for Road Transport in India: Case Studies of Andhra Pradesh and Himachal Pradesh”, Economic and Political Weekly, 2007.