The short-term impact of air pollution on medical expenditures: Evidence from Beijing
We identify the short-term effects of PM2.5 concentrations on medical costs in Beijing by analyzing two datasets: one detailing daily air quality indexes over a four-year period and the other containing individual-level records of all health care visits and medical transactions that occurred under a government insurance program that covers most city residents. We find that both higher levels of air pollution and longer-lasting pollution episodes significantly increase health care visits and medical expenditures.