Study on the impact of air pollution on residents' health expenditures in Guangdong, Hong Kong, and Macao Greater Bay Area.

ABSTRACT

The Guangdong, Hong Kong, and Macao Greater Bay Area (GHMA) has experienced economic development and rapid growth of transportation infrastructure in recent years. However, the economic advancement is also accompanied by serious atmospheric pollution, which threatens the health of the residents, thus, it is of great significance to explore the impact of atmospheric pollution on the health expenditures of residents in the GHMA. The article establishes a spatial econometric model to study the impact of atmospheric pollution on residents' health expenditure in the GHMA based on panel data from 2014 to 2021, using nine prefectures in the GHMA as research objects. The results show that (1) Atmospheric pollution in the GHMA has an obvious spatial agglomeration phenomenon and spatial spillover effect, and the impact of atmospheric pollution on the health of the residents is still very serious; (2) PM2.5 emissions are positively and significantly related to the actual health care cost per person, and the rise in air pollution is the main reason for the rise in public health spending; (3) Other factors also have different impacts on residents' health expenditures. Based on the above research, the article puts forward corresponding policy recommendations.