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Smog Avoidance Investment While Improving Air Quality

Health Demand or Risk Aversion? Evidence from Cities in China

Bibliographic Data

ID15468959
AuthorsJichun Zhao (0000-0002-5138-4177, Beijing Academy of Agricultural and Forestry Sciences), Hongbiao Wang (Beijing Academy of Agricultural and Forestry Sciences), Jianxin Guo (0000-0001-8702-3237, Beijing Academy of Agricultural and Forestry Sciences, corresponding author)
Year2021
Volume18
Issue15
Pages7788-7788
Publication date2021-07-22
Open AccessYes
TypeARTICLE
VenueInternational Journal of Environmental Research and Public Health (JOURNAL)
Journal identifiersISSN: 1661-7827 • E-ISSN: 1660-4601
PublisherMultidisciplinary Digital Publishing Institute (PUBLISHER • CH)
DOI10.3390/ijerph18157788
PMID34360079
OpenAlexW3184657329
LanguageEN
Citations received2
References cited29

Atmospheric pollution control policies have achieved remarkable progress in China since 2013, and the smog protective equipment market has experienced a great boom during the same period. From the perspectives of the health production efficiency hypothesis and the time discount rate hypothesis, this study investigates the relationship between household expenditures on air pollution avoidance and health care, and individuals' self-assessed health based on network survey data from 17 cities in China. Using the treatment effect model to control the potential endogenous selection problems, we explain the paradox of the growing smog avoidance investment coexisting with improving air quality. First, smog avoidance investment and household medical expenditures do not have substitution effects, while the perception of pollution intensity, pollution protection knowledge, and future health preferences significantly promote smog avoidance investment and medical expenditures. Second, air pollution avoidance investment greatly increases the probability that urban residents rate their health as "good" and "very good". The results indicate that the time preference hypothesis can explain the pollution avoidance investment behavior and health demands of Chinese urban residents well. The hidden social welfare loss caused by air pollution may still be underestimated, even though short-term avoidance costs are included in the evaluation of pollution impacts. It is necessary to optimize environmental regulations and policies to consistently improve the ecological environment

Air pollution · Air quality index · Boom · Business · China · Economics · Environmental health · Geography · Investment (military · Natural resource economics · Public economics · Air Quality and Health Impacts · Energy, Environment, Economic Growth · Environmental Science · Global Health Care Issues · Medicine · Environmental Engineering · Pollution

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Citations per year2
Citation span2025 - 2026 (2)
Highly citedNo

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