Shushanik Margaryan

This paper investigates the health and pollution externalities caused by transboundary particulate matter (PM2.5 and PM10) between Germany and Poland. Utilizing data from 1996 to 2018, we show that Poland’s heavy reliance on coal for residential heating, especially during winter, leads to significantly higher pollution levels than in neighboring Germany. By analyzing wind patterns, we isolate the effect of cross-border pollution and find that easterly winds increase particulate matter in German border regions by 10-15 μg/m3, particularly during colder months. Our analysis of hospital admissions data shows a corresponding rise in respiratory and cardiovascular conditions, with older populations being most affected.