The effect of clean air on pharmaceutical expenditures
Alexander Rohlf, Felix Holub, Nicolas Koch, Nolan Ritter
Abstract
Airborne emissions are detrimental to health. Low emission zones (LEZs) that restrict pollution-intensive vehicles from entering are popular measures to curb local emissions such as particulate matter. We evaluate how LEZs impact defensive pharmaceutical expenditures. To this end, we use the complete medical histories of 2.7M individuals insured with Germany’s largest public health insurer AOK. We identify causal effects exploiting the quasi-experimental, staggered introduction of LEZs in 49 cities. We find that LEZs reduce annual pharmaceutical expenditures for heart and respiratory diseases by 15.8M€, representing a significant fraction of policy costs.
Topics & Concepts
ParticulatesAir pollutionBusinessNatural resource economicsPollutionPublic economicsPublic healthEconomicsEnvironmental healthMedicineChemistryBiologyOrganic chemistryNursingEcologyAir Quality and Health ImpactsGlobal Health Care IssuesClimate Change Policy and Economics