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KMID : 1170320180240020059
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Korean Journal of Health Economics and Policy
2018 Volume.24 No. 2 p.59 ~ p.81
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Health Effects and Medical Expenditure Caused by Fine Particles
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Yoo Hye-Rim
Min In-Sik
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Abstract
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In this study, we use air pollution data released from AirKorea and National Health Information of National Health Insurance Service (NHIS) to estimate the health effects and medical expenditure caused by fine particles. As an econometric strategy, we employ a fixed effects estimation approach. Overcoming a limit to previous studies that all age-groups are not considered at the national level, we assess aggregate health effects and direct medical costs of hospitalization resulting from air pollution. Empirical evidence shows that first, the adverse health effect of increased fine particles is statistically significant. Thus the proportion of patients with the respiratory disease is significantly and positively associated with bad air quality. Second, the negative health effect of fine particles is observed in all age groups. It particularly appears in 10-19 years old students and over 60-year old elderly persons. Third, using coefficient estimates from the fixed effects regression, medical expenses purely arising from fine dust almost amount to 45.1 billion won according to the hypothetical air pollution scenario. This study suggests that air pollution prevention policy is also necessary for teenagers who are vulnerable to deteriorated air quality because they are hard to reduce outdoor activities.
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KEYWORD
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Health effects, Medical expenditure, Fine particles, Fixed effects
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