What is the health cost of haze pollution? Evidence from China

Haze pollution has become a serious threat to the health of residents and has brought about considerable economic costs. The objectives of this study are to examine the relationship between haze pollution and residents' health and to estimate the health cost of haze pollution.

Using macro data on 74 major Chinese cities, this study employs a static panel data model and a dynamic panel generalized method of moments model to investigate the impact of haze pollution on the mortality of residents. On the basis of the estimation results, the value of a statistical life (VOSL) method is used to evaluate the economic cost of haze pollution on residents' health.

In 74 major cities of China, an increase in concentration of PM_2.5 pollutants by 1 μg/m³ may cause the mortality rate to rise by 25 per million people. The VOSL of haze pollution in China is about 1.53 million yuan. The health cost of residents from haze in 74 major cities of China in 2016 was about 888 billion yuan, equivalent to about 2% of the these cities' GDP.

Haze pollution has serious damage to the health of urban residents and therefore brings about considerable economic losses.