The effect of clean heating policy on individual health: Evidence from China

The clean heating policy implemented in the northern region aims to promote the use of clean energy in winter heating and improve the air quality. Based on the micro data from China Family Panel Studies in China, this study estimates the role of clean heating policy in decreasing the probabilities of having physical diseases for residents. Findings show that clean heating policy significantly induces an improvement in the physical health of people, and it leads to a 1.3 % decrease in the probability of having a respiratory disease. Besides, the beneficial effect of clean heating policy is much larger for the elderly and the low-income people. Clean heating policy improves regional air quality, raises residents' environmental awareness, and drives them to take avoidance behavior, which has a beneficial effect on their health. The cost-benefit analysis indicates that short-term health benefits from the decreased defensive expenditures and the reduced medical expenditures are larger than the total costs of the policy. These findings imply that clean heating policy is an effective strategy to improve environmental quality and social welfare, and perhaps the differentiated policy that favors the elderly and the poor groups can be more efficient.