How Does Industrial Waste Gas Emission Affect Health Care Expenditure in Different Regions of China: An Application of Bayesian Quantile Regression

Abstract

Industrial development has brought about not only rapid economic growth, but also serious environmental pollution in China, which has led to serious health problems and heavy economic burdens on healthcare. Therefore, the relationship between the industrial air pollution and health care expenditure (HCE) has attracted the attention of researchers, most of which used the traditional empirical methods, such as ordinary least squares (OLS), logistic and so on. By collecting the panel data of 30 provinces of China during 2005–2016, this paper attempts to use the Bayesian quantile regression (BQR) to reveal the impact of industrial air pollution represented by industrial waste gas emission (IWGE) on HCE in high-, middle-, low-income regions. It was found that double heterogeneity in the influence of IWGE on HCE was obvious, which revealed that people in high-, middle-, low-income regions have significantly different understandings of environmental pollution and health problems. In addition, the BQR method provided more information than the traditional empirical methods, which verified that the BQR method, as a new empirical method for previous studies, was applicable in this topic and expanded the discussion space of this research field.