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Health, health care, and the environment: econometric evidence from German micro data

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  • Erbsland, Manfred
  • Ried, Walter
  • Ulrich, Volker

Abstract

The paper develops and applies a Grossman-style health production model set up in discrete time to explain the impact of environmental pollution on the demand for both health and health care. In order to introduce the environment, our analysis takes changes in environmental conditions to influence the rate at which an individual's stock of health depreciates. While the theoretical part of our paper also contains a discussion of the full model, we restrict our analysis to a submodel which is known as the pure investment model. lbis is because the other submodel, the pure consumption model, implies a rather implausible case of satiation with respect to the individual's preferences. Our empirical findings' are based on data taken from the German Socio-economic Panel (SOEP). The stock of health capital and environmental pollution are treated as latent variables and estimated using a LINCS model. The quality of the environment turns out to be an important determinant of health capital. From the point of view of health economics, improvements in environmental conditions can be interpreted as preventive measures. In terms of prevention, public policies designed to protect the environment also yield significant health effects. As regards health care demand the influence is not dearcut, i.e. one cannot necessarily expect a reduction in resource use.

Suggested Citation

  • Erbsland, Manfred & Ried, Walter & Ulrich, Volker, 1994. "Health, health care, and the environment: econometric evidence from German micro data," ZEW Discussion Papers 94-16, ZEW - Leibniz Centre for European Economic Research.
  • Handle: RePEc:zbw:zewdip:9416
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    References listed on IDEAS

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    3. Selma J. Mushkin, 1962. "Health as an Investment," NBER Chapters, in: Investment in Human Beings, pages 129-157, National Bureau of Economic Research, Inc.
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    6. Van de Ven, Wynand P. M. M. & Van Der Gaag, Jacques, 1982. "Health as an unobservable : A MIMIC-model of demand for health care," Journal of Health Economics, Elsevier, vol. 1(2), pages 157-183, August.
    7. Michael Grossman, 1972. "The Demand for Health: A Theoretical and Empirical Investigation," NBER Books, National Bureau of Economic Research, Inc, number gros72-1.
    8. Selma J. Mushkin, 1962. "Health as an Investment," Journal of Political Economy, University of Chicago Press, vol. 70(5), pages 129-129.
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    Cited by:

    1. Di Novi, Cinzia, 2013. "The indirect effect of fine particulate matter on health through individuals’ life-style," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 44(C), pages 27-36.
    2. Meher-un-Nisa & Hafiz Muhammad Abubakar Siddique, 2022. "Climate Change and Women Health Nexus: Evidence from District Gujranwala," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(2), pages 54-66, August.
    3. Cinzia Di Novi, 2011. "Quality and Reputation: The Indirect Effect of Fine Particulate Matter on Health through Individuals' Life-style," DISCE - Quaderni dell'Istituto di Economia dell'Impresa e del Lavoro ieil0062, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    4. Tahseen Ajaz & Muhammad Tariq Majeed, 2018. "Changing Climate Patterns and Women Health: An Empirical Analysis of District Rawalpindi Pakistan," Global Social Sciences Review, Humanity Only, vol. 3(4), pages 320-342, December.

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