The paper aims to provide the basis foran estimation equation and will focus on the relationbetween transport emissions and air quality in an urbanenvironment. This is directly related to the fact that mosthealth impacts are related to local air quality levels. Theaim of the paper is to create an understanding of thefactors that play a role in the causal relation betweentransport emissions and health effects and providesapproximations from existing studies that can be used toassess these health impacts and related costs. The paperfocuses on the translation of air pollution levels intohealth impacts and health costs. The overall structure ofthe paper follows the two key steps and elaborates on theinherent challenges: (1) identify and measure the healtheffects of air pollution, and (2) to estimate the costs ofthe health effects. The paper is divided into four chapters:chapter one is introduction- outlining the goals andbackground to the project; chapter two gives impacts of airpollution from transport on health; chapter three presentsvaluation of health impacts- reviews the literature on howto value the impacts on health associated with airpollution; and chapter four gives guidelines for calculatingthe health effects of air pollution from traffic.