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Abstract
Air pollution is one of the most severe environmental risks in the Arctic Council countries, with adverse effects on human health, wellbeing, and the environment. It is shown that policy action on air pollution would result in better air quality, and thus in health and economic improvements in the region. While recent modelling literature highlights the economic benefits of improving air quality on an aggregated level, this study aims to contribute to the existing literature by showing how different sectors contribute to reducing emissions of specific gases in specific areas. This paper shows that most part of the macroeconomic benefit from increased air quality in the Arctic Council countries results from taking policy action in the agricultural, industrial and residential sectors.