Health Benefits from Improved Air Quality: Evidence from Pollution Regulations in China’s “ $$2{+}26$$ 2 + 26 ” Cities

Tingting Xie (), Yong Wang () and Ye Yuan ()
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Tingting Xie: Central University of Finance and Economics
Yong Wang: Policy Research Center for Environment and Economy, Ministry of Ecological Environment
Ye Yuan: Peking University

Environmental & Resource Economics, 2024, vol. 87, issue 5, No 5, 1175-1221

Abstract: Abstract This study assesses the health benefits of better air quality by examining the causal impact of China’s stringent “ $$2{+}26$$ 2 + 26 ” regional air pollution control policy on local air quality and population health. Employing a spatial regression discontinuity design that capitalizes on the policy’s location-specific features, we present compelling evidence that the $$2{+}26$$ 2 + 26 policy results in an average reduction of 12.2 units in the local Air Quality Index (AQI) and a 47.0% decrease in per capita medical expenditure from 2014 to 2018. A one-unit reduction in AQI corresponds to a 0.88% reduction in per capita annual medical spending, equivalent to RMB 30.2 (US$4.6). These health gains stem from reduced chronic disease prevalence and improved subjective well-being. Nationally, air quality improvement during 2014–2018 could save RMB 674 billion (US$104 billion) annually in national direct medical costs, constituting 11.6% of national medical expenditure in 2018. Our findings underscore the substantial health and welfare gains achievable through pollution controls in developing countries.

Keywords: Air pollution; Environmental governance; Health benefits; Social welfare; D80; I10; Q53; Q58 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s10640-024-00860-3

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