Individualized evaluation of health cost and health risks

Abstract This paper presents an individualized evaluation of the health costs and health risks of haze pollution by conduction channels and conduction strengths. Ordinal probit model and quantile regression are used to analyze data on individuals in Hangzhou, an environmental friendly city in China. The analyses yield four findings. First, in Hangzhou, haze pollution increases citizens' health spending by >2.49 billion US dollars. Second, health costs are mainly driven by increased risks of respiratory infection. Third, the quantile analysis of health risks shows the conduction channels and corresponding strengths vary for different population groups by age and health status. Lastly, respon…