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Environ Int. 2018 Nov;120:443-455. doi: 10.1016/j.envint.2018.08.011. Epub 2018 Aug 22.

Air pollution and healthcare expenditure: Implication for the benefit of air pollution control in China.

Author information

1
State Key Laboratory of Pollution Control & Resource Reuse, School of Environment, Nanjing University, Nanjing 210093, PR China.
2
State Key Laboratory of Pollution Control & Resource Reuse, School of Environment, Nanjing University, Nanjing 210093, PR China; Jiangsu Collaborative Innovation Center of Atmospheric Environment and Equipment Technology (CICAEET), Nanjing University of Information Science & Technology, Nanjing 210044, PR China. Electronic address: zhangb@nju.edu.cn.

Abstract

Quantitating the health effects of air pollution is important for understanding the benefits of environmental regulations. Using the China Urban Household Survey (UHS) Database, this paper estimated the effect of air pollution exposure on household healthcare expenditure. To address potential endogeneity concerns, we performed household healthcare expenditure regressions using an instrumental variables (IV) strategy based on spatial air pollution spillovers. Our research revealed that a 1% increase in yearly exposure to fine particulate matter (PM2.5) corresponds to a 2.942% (95% confidence interval: 1.084%, 4.799%) increase in household healthcare expenditure. The estimates suggest that the 13th Five-Year Plan for Ecological and Environmental Protection (the 13th FYP) would reduce annual national healthcare expenditure by 47.36 Billion Dollar (95% confidence interval: 17.45 Billion Dollar, 77.25 Billion Dollar), which accounts for 0.64% (95% confidence interval: 0.24%, 1.04%) of China's gross domestic product (GDP).

KEYWORDS:

Air pollution; Fine particulate matter; Healthcare expenditures; Social cost

PMID:
30142582
DOI:
10.1016/j.envint.2018.08.011
[Indexed for MEDLINE]

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