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The impact of air pollution on commercial health insurance demand amidst China's green transition

Author

Listed:
  • Xiaodan Wang

    (Guangdong University of Finance & Economics)

  • Huiqing Tan

    (Guangdong University of Finance & Economics)

  • Jing Liu

    (Guangdong University of Finance & Economics)

Abstract

The increasing public concern about health impacts from air pollution has been paralleled by a growth in commercial health insurance (CHI) demand in China. This study explores the relationship between air pollution and CHI demand using Chinese provincial panel data, applying linear and nonlinear models. It finds a remarkable positive impact of air pollution on CHI demand, where an increase in lnPM2.5 per capita is linked to a proportional rise in per capita CHI premium income. This effect varies regionally, being notable in the eastern and central regions while negligible in the western region. In addition, the study identifies a nonlinear threshold effect of air pollution on CHI demand, characterized by increasing marginal efficiency and a double threshold pattern as per capita medical expenditures change.

Suggested Citation

  • Xiaodan Wang & Huiqing Tan & Jing Liu, 2024. "The impact of air pollution on commercial health insurance demand amidst China's green transition," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-19, April.
  • Handle: RePEc:kap:ecopln:v:57:y:2024:i:2:d:10.1007_s10644-024-09623-y
    DOI: 10.1007/s10644-024-09623-y
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    References listed on IDEAS

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    4. Lifei Gao & Jing Guan & Guojun Wang, 2022. "Does media-based health risk communication affect commercial health insurance demand? Evidence from China," Applied Economics, Taylor & Francis Journals, vol. 54(18), pages 2122-2134, April.
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