Spatial Spillover Effects of Air Pollution on the Health Expenditure of Rural Residents: Based on Spatial Durbin Model

Background: Air pollution is one source of harm to the health of residents, and the impact of air pollution on health expenditure has become a hot topic worldwide. However, few studies aim at the spatial spillover effects of air pollution on the health expenditure of rural residents (HE-RR), including the impact on the health expenditure in neighboring areas. Objective: Based on the existing research, this paper further introduces the spatial dimension and uses the Spatial Durbin model to discuss the impact of environmental pollution on the health expenditure of rural residents (HE-RR). Methods: Based on provincial panel data during 2002–2015 in China, the Spatial Durbin model was used to investigate the spatial spillover effect of the average annual concentration of PM2.5 (AAC-PM2.5) on the health expenditure of rural residents (HE-RR). Results: There was a significant positive correlation between AAC-PM2.5 and health expenditure of rural residents (HE-RR) in neighboring areas at a significant level of 5% (COEF: 2.546, Z: 2.340), that is, AAC-PM2.5 has a spatial spillover effect on PC-HE-RR in neighboring areas, and the spatial spillover effect is greater than the direct effect. The migration and diffusion of PM2.5 pollution will affect the air quality of neighboring areas, leading to the health risk not only from the local PM2.5 pollution but also the nearby PM2.5 pollution. Conclusion: The results show a significant positive relationship between air pollution and HE-RR in neighboring areas, and the spatial spillover effect is greater than the direct effect.