Abstract:

On the basis of investigation and statistics analysis of Chaohu Basin in 2002，this paper calculated the economic losses caused by air pollution，applying the principles and methods of environment economic analysis such as human capital，market value，opportunity cost and assets value，etc.Five aspects of economic losses were caused by air pollution，including human health，crop yield，forest，home cleaning expenses and construction materials erosion.The results showed that construction materials erosion cost 0185 billion Yuan，that was the highest of economic losses caused by air pollution in Chaohu Basin in 2002.The second was the losses of human health，which cost 0151 billion Yuan.These two kinds of losses amounted to 7814% of the total.The rest were home cleaning expenses，the losses of crop yield and the losses of forest in turn，which were 0073 billion，0012 billion and 0009 billion Yuan respectively.The total of the investment of environmental protection were 046 billion Yuan in 2002，but the economic losses caused by air pollution were about 0.43 billion Yuan in 2002，which occupied 084％ GDP of Chaohu Basin in the same year.It was clear that the investment of environmental protection could not match the losses of environment pollution.

Key words: air pollution, environment economic costs, value estimation, Chaohu Basin