The dynamic relationship between environmental pollution, economic development and public health: Evidence from China

During the last two decades of rapid economic growth, China's environmental pollution has become increasingly serious, and the corresponding health damage has become a significant problem that has attracted domestic and foreign attention. As China pursues sustainable economic growth, the issues of environmental degradation and public health should be well addressed. Using sulfur dioxide emissions, wastewater emissions, and soot and dust emissions as indicators of environmental quality, this study investigates the comprehensive dynamic relationship between environmental quality, economic development and public health in China for the first time. To control for potential endogeneity, this paper utilizes a carefully designed simultaneous equation model (SEM) that is composed of three equations that describe the relationships among economic development, environmental quality and public health. Using panel data from 30 Chinese provinces for the period from y2002 to y2014, the model verified the negative effect of environmental pollution on public health. Moreover, economic and social factors may also affect public health. For instance, real GDP per capita has a significant negative impact on perinatal mortality rates, and education and medical conditions also contribute significantly to promoting economic growth and improving the level of public health.