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When Particulate Matter Strikes Cities: Social Disparities and Health Costs of Air Pollution

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Abstract

We investigate the heterogeneous effects of daily particular matter (PM) pollution on Italian hospitalizations and their costs. We exploit public transportation strikes as plausibly-exogenous shocks in PM. We find that young individuals, an arguably healthy age group, exhibit economically meaningful responses to changes in air pollution. A higher prevalence of pollution-induced hospitalizations also exists among the elderly, low educated individuals and migrants coming from low income countries. Our results imply a large role for differential avoidance behavior driving heterogeneous marginal effects. PM exposure also affects the intensive margin since pollution-induced hospitalizations are not only more frequent but they are characterized by a higher complexity, generating additional costs.

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  • Matilde Giaccherini & Joanna Kopinska & Alessandro Palma, 2019. "When Particulate Matter Strikes Cities: Social Disparities and Health Costs of Air Pollution," CEIS Research Paper 467, Tor Vergata University, CEIS, revised 04 Aug 2020.
    • Handle: RePEc:rtv:ceisrp:467
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    5. Jason Brown & Colton Tousey, 2020. "Death of Coal and Breath of Life: The Effect of Power Plant Closure on Local Air Quality," Research Working Paper RWP 20-15, Federal Reserve Bank of Kansas City.
    6. Wang, Qinyun & Wang, Xuebin & Yan, Qianhui & Zhang, Lvqing, 2024. "Heavy industry regulations, hospitalization, and medical expenditures: Evidence from micro-level medical records in a northeast Chinese city," Energy Economics, Elsevier, vol. 129(C).
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    9. Liu, Ziheng & Chen, Xi & Lu, Qinan, 2023. "Blowin' in the Wind of an Invisible Killer: Long-Term Exposure to Ozone and Respiratory Mortality in the United States," IZA Discussion Papers 15981, Institute of Labor Economics (IZA).
    10. Verónica ACURIO VASCONEZ & David DESMARCHELIER & Romain RESTOUT, 2024. "Pollution, Endogenous Capital Depreciation, and Growth Dynamics," Working Papers of BETA 2024-01, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    11. Liu, Ziheng & Lu, Qinan, 2023. "Invisible pollution and hypertension: Evidence from the aging population in China," China Economic Review, Elsevier, vol. 82(C).
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    14. Matilde Giaccherini & Joanna Kopinska, 2024. "Fallout and Fertility: Chernobyl’s Legacy and the Role of Compliance with Public Protection Measures," CESifo Working Paper Series 11260, CESifo.
    15. Martin Hensher, 2023. "Climate change, health and sustainable healthcare: The role of health economics," Health Economics, John Wiley & Sons, Ltd., vol. 32(5), pages 985-992, May.
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    17. Bagilet, Vincent & Zabrocki-Hallak, Léo, 2022. "Why Some Acute Health Effects of Air Pollution Could Be Inflated," I4R Discussion Paper Series 11, The Institute for Replication (I4R).
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    More about this item

    Keywords

    health effects of air pollution; public transportation strikes; hospitalization costs; environmental inequality;
    All these keywords.

    JEL classification:

    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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