| | This paper provides some methods of estimation of physical and monetary accounts of air pollution from road transport. Using data from secondary sources and a vehicular survey, estimates of annual air pollution abatement cost for vehicles complying with Euro norms are made for the road transport sector in Andhra Pradesh and Himachal Pradesh. The pollution abatement cost of each vehicle comprises the cost of upgrading vehicular technology and cost of improving fuel quality. For example, the annual pollution abatement cost for a passenger car complying with Euro III norms is estimated at Rs 7,190 and Rs 6,624 for AP and HP, respectively. If all vehicles comply with Euro III norms, total air pollution abatement cost of the road transport sector constitutes 2.13 per cent and 2.16 per cent of state domestic product of the respective states.
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