05/01/2017
Pollution Further Widens the Gap between the Rich and the Poor
Recently, researchers have found drug-resistant bacteria in Beijing haze, which sparked a national concern of the lasting injury for health brought by haze once again. The Global Burden of Disease Study 2010 shows that outdoor air pollution in China, to a large extent, led to 1.234 million premature deaths and a loss of 25 million years in healthy lifetime. China has become one of the countries with the heaviest disease burdens. From 1990 to 2010, the disease burdens caused by outdoor air pollution increased by 33% in China.3Meanwhile, the grim resource and environment situations not only trigger the public’s deep concern about environmental health, but also further widen the gap between the rich and the poor and aggravate social inequality.
Environment, health and inequality are hot issues across the world. Foreign studies mainly focus on influences of environment pollution on health and health inequality and evaluate those influences from a one-way dimension (from poverty to the environment). As an important channel connecting the environment with poverty and with income, health has not received deserved attention. In fact, the influences of environment pollution on health and health inequality will further affect education, labor, income and other socioeconomic benefits and their distribution. Although some studies have already discussed this issue, the mechanism behind it has not been effectively explained and has seldom been verified by empirical data. As far as we know, no domestic studies have explored the internal relationship between pollution and health inequality, let alone extending the relationship to the economic and social fields. This study hopes to contribute to the above issues.
QI Yu, College of Finance and Taxation in Zhongnan University of Economics and Law, and LU Hongyou, Department of Finance, College of Economic and Management in Wuhan University, propose the issue of the “environment-health-poverty trap” based on previous studies and the overlapping generations model. Meanwhile, they also believe that due to the SES difference, environment pollution will cause different levels of exposure to pollution and different effects on health, which will bring health inequality and then become a new source increasing social inequality. They use individuals’ socioeconomic data nested in city-level pollution data and adopt a hierarchical generalized linear regression model, finding that pollution is an important transmission mechanism for SES to affect health and inequality. To be specific, people with low SES are more easily to be exposed to pollution and suffer more impacts on their health; at the city level, the health and economic burdens caused by pollution are heavier in areas with backward economic development, and such burdens clearly follow a regressive distribution, namely that the health cost of pollution is much higher in areas with lower income. Furthermore, they built a system of simultaneous equations with provincial panel data from 1998 to 2011 to further test and explain how pollution affects intra-regional and urban-rural inequality through health.
Because pollution is closely related to poverty and China is facing a grim situation in terms of pollution, China may face great risks of an “environment-health-poverty trap”during a certain period. Thus, they put forward the following policy suggestions. First, the mechanism regarding compensation and assistance for damage to health caused by environment pollution shall be further improved. Second, an environment and health management system shall be constructed which shall be “people-oriented, focus on prevention and combine prevention with control.” Third, environmentally friendly, resource saving technologies that could protect the environment and health shall be promoted. Fourth, equalization of basic public services, especially the services regarding healthcare, social security and environment protection, should be promoted.
The related research is completed by QI Yu, College of Finance and Taxation in Zhongnan University of Economics and Law, and LU Hongyou, Department of Finance, College of Economic and Management in Wuhan University. The research findings are published in the 9th issue of Management World, 2015. The bilingual version has been launched already.