Impact of Environmental Regulations on Environmental Quality and Public Health in China: Empirical Analysis with Panel Data Approach

Achieving high-quality environmental development through environmental regulations and thus enhancing public health is a goal of the Chinese government. Based on the panel data of 30 Chinese provinces from 1998 to 2017, this study demonstrates the co-benefits of environmental regulations on air quality, water, and public health through a panel Granger causality model and mediation effect model. The findings indicate that environmental regulations have a Granger causal effect on public health costs and air and water pollution. Furthermore, the results from the mediation effect model suggest that waste gas treatment could improve air quality, thus reducing public health costs; wastewater treatments could not only reduce public health costs through improvement of the water environment but also increase social welfare. Additionally, air pollution exhibits a greater negative externality impact on health than water pollution. Thus, environmental regulation policies should pay more attention to air pollution control. The findings of this study indicate that environmental regulations have a significant co-benefit on high-quality environmental development and public health.