ՏՆՏԵՍԱԿԱՆ ԵՎ ԲՆԱՊԱՀՊԱՆԱԿԱՆ ՓՈԽԿԱՊԱԿՑՈՒԹՅՈՒՆՆԵՐ՝ ՄԹՆՈԼՈՐՏԱՅԻՆ ՕԴԻ ԱՂՏՈՏՎԱԾՈՒԹՅԱՆ, ՆԵՐԴՐՈՒՄՆԵՐԻ ՀՈՍՔԵՐԻ ԵՎ ՖԻՍԿԱԼ ԿԱՅՈՒՆՈՒԹՅԱՆ ԿԱՌԱՎԱՐՈՒՄԸ ՀՀ-ՈՒՄ / ECONOMIC AND ENVIRONMENTAL INTERLINKAGES: AIR POLLUTION, INVESTMENT FLOWS, AND MANAGEMENT OF FISCAL STABILITY IN ARMENIA

<jats:p>This study analyzes the economic and fiscal impacts of ambient air pollution in Armenia, with a particular focus on PM2.5 emissions and their subsequent impact on human capital, labor productivity, and public finances. Utilizing monitoring data, econometric modeling, and policy analysis, the paper assesses how increasing air pollution reduces workforce efficiency, raises healthcare expenditures, and adversely affects the country’s gross domestic product (GDP). The findings indicate that elevated PM2.5 concentrations are directly associated with absenteeism and diminished workplace productivity, emphasizing the strong interconnection nature of environmental standards and the economy. The study further examines risk-mitigating investment frameworks, such as public-private partnerships (PPP), green bonds, and state incentive schemes designed to accelerate the adoption of clean technologies. Econometric simulation models demonstrate that strategic, objective-driven investments in air quality enhancement not only optimize public health outcomes but also reinforce fiscal sustainability by substantially curtailing public healthcare liabilities and bolstering long-term economic resilience. The paper argues that Armenia’s policy framework should integrate environmental, energy, and economic governance in order to ensure long-term financial and macroeconomic stability. Particular emphasis is placed on renewable energy development, green infrastructure, and data-driven environmental monitoring systems. The analysis confirms that air pollution generates substantial economic and fiscal damages in Armenia, while coordinated strategic interventions can provide significant social, economic, and environmental benefits. The study is grounded in the joint analytical work conducted by the Ministry of Environment and the Ministry of Finance of the Republic of Armenia in 2023, as well as the findings of the Asian Development Bank’s 2023 assessments and the World Bank’s 2024 reports. It further considers the Government of Armenia’s 2025–2030 Comprehensive Program on Atmospheric Air Protection and the Green Taxonomy framework developed through the collaboration of the World Bank and the Ministry of Economy of the Republic of Armenia.</jats:p>