Air Pollution , Health Spending and Willingness to Pay for Clean Air in China

  title={Air Pollution , Health Spending and Willingness to Pay for Clean Air in China},
  author={Panle Jia Barwick and Shanjun Li and D. S. Prasado Rao and Nahim Bin Zahur},
Understanding the health impact of air pollution and consumer willingness to pay (WTP) for clean air is critical for understanding the benefit of environmental regulations. Based on the universe of credit and debit card transactions in China from 2013 to 2015, this paper provides to our knowledge the first analysis of the impact of PM2.5 on healthcare costs for the entire population of a developing country. To address potential endogeneity in pollution exposure, we construct an instrumental… Expand
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