The Short-Term Impact of Air Pollution on Healthcare Expenditures

Understanding the health impact of air pollution is critical for understanding the benefit of environmental regulations, especially under the synergies of carbon neutrality and air pollution control. We examine the effect of fine particulate matter (PM_2.5) on individual healthcare expenditures in China from 2017 to 2019 using daily transaction data from 320 cities and evaluate the health co-benefits of carbon neutrality. Results show that each 10 μg/m³ increase in daily PM_2.5 exposure is associated with a 0.31 percent increase in three-day healthcare consumption and a 0.53 percent increase in three-day individual healthcare expenses. Achieving carbon neutrality goals with the national air quality daily standard of 35 μg/m³ can save 1.5 billion yuan annually. Ambitious goals with World Health Organization Air Quality Guidelines of 15 μg/m³ can nearly double the saving. This study not only provides insight into the potential health benefits of carbon neutrality in China but also suggests that extensive benefits may result from more ambitious targets.