Health capital investment is an integral aspect of human capital investment, and it is vitally important to improve residents' health by encouraging them to maintain insurance. This paper estimates the potential impact of particulate pollution (PM2.5) on health insurance buyers at the city level. Using PM2.5 as a representative air pollution indicator, we construct a threshold panel model and a spatial econometric model based on 2000-2019 panel data from 256 Chinese cities and the health production function to examine the impact mechanism through which PM2.5 pollution causes changes in the number of health insurance buyers. The results indicate that higher PM2.5 pollution significantly increases health insurance buyers in China. Considering the threshold effect, per capita GDP has a nonlinear relationship with an increasing marginal effect on the higher number of health insurance buyers. Due to spatial spillover effects, PM2.5 pollution has an additional impact on the number of health insurance buyers, indicating that a lack of awareness of the spatial correlation will result in underestimating the impact of PM2.5 pollution on residents' health. The robustness of adjacency and geographic distance matrices demonstrates that the regression results are robust and reliable. The findings of this study provide a practical reference for health insurers' development and policymakers' pollution control efforts.
Keywords: China; PM2.5 pollution; health insurance; spatial Durbin model; threshold effect.
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