PM_2.5 concentration declining saves health expenditure in China

Air pollution has been a severe issue in China. Exposure to PM_2.5 has adverse health effects and causes economic losses. This study investigated the economic impact of exposure to PM_2.5 pollution using monthly city-level data covering 88.5 million urban employees in 2016 and 2017. This study mainly focused on three expenditure indicators to measure the economic impact considering lower respiratory infections (LRIs), coronary heart disease (CHD), and stroke. The results show that a 10 µg/m³ increase in PM_2.5 would cause total monthly expenses of LRIs, CHD, and stroke to increase by 0.226%, 0.237%, and 0.374%, respectively. We also found that LRI, CHD, and stroke hospital admissions increased significantly by 10%, 8.42%, and 5.64%, respectively. Furthermore, the total hospital stays of LRIs, CHDs, and strokes increased by 2.49%, 2. 51%, and 1.64%, respectively. Our findings also suggest heterogeneous impacts of PM_2.5 exposures by sex and across regions, but no statistical evidence shows significant differences between the older and younger adult subgroups. Our results provide several policy implications for reducing unequal public health expenditures in overpolluted countries. [Figure not available: see fulltext.]