Exploring the causal relationship between PM 2.5 air pollution and urban areas economic welfare and social-wellbeing: Evidence form 15 European capitals

This paper aims to investigate the relationship between air pollution (PM2.5) and a collection of features related to urban areas economic welfare and social-wellbeing based on data collected from a number of 15 European capitals, for a seven years' period (2010-2017). The empirical analysis describes the correlation between the particulate pollution and welfare features in selected urban areas. Moreover, the PM2.5 pollutions may affect the economic and social development of these areas as, both entrepreneurs and population are inclined to relocate for a healthier environment. The models emphasize aspects related to the impact of PM 2.5 on different dimensions as follows: real estate rent values and land prices, restaurants food prices, community economic development, human welfare, as well as urban traffic. From the various correlations we have also discovered that for the urban areas included in the research, at early stages urbanization has the highest impact on air pollution. The findings of this study may offer hints for decision makers for their social and economic policy options. A clean urban environment will attract more skilled employees seeking for economic, social and environmental wellbeing. If the urban agglomerations authorities will fail to mitigate properly the air pollution issues the wellbeing will decrease along with the willingness of urban population to stay in such areas.