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With the outbreak of COVID-19 (Corona Virus Disease, 2019), China adopted traffic restrictions to reduce the spread of COVID-19. Using daily data before and after the outbreak of COVID-19, an exogenous shock, this paper analyzes the effects of private vehicle restriction policies on air pollution. We find that the private vehicle restriction policies reduce the degree of air pollution to a certain extent. However, their effect varies with other policies implemented in the same period and the economic development of the city itself. Through the analysis of different categories of restrictions, we find that restriction policy for local fuel vehicles and the restriction policy based on the last digit of license plate numbers have the best effect in reducing air pollution. Under the background of COVID-19 epidemic and the implementation of private vehicle restriction policies and other traffic control policies during this period, we have also obtained other enlightenment on air pollution control. • The causal relationship between air pollution and restriction is analyzed. • An exogenous shock from COVID-19 is used to identify this relationship. • The private vehicle restriction reduces the degree of air pollution. • The restriction policies have heterogeneous effects. • The effects of restriction are affected by other policies against COVID-19. [ABSTRACT FROM AUTHOR]

Using the China Health and Nutrition Survey, this study quantifies the causal effects of air pollution on the demand for medical insurance from the perspective of avoidance behavior; an instrumental variable approach was used. The rise in air pollution is associated with an increased probability of purchasing medical insurance. Results suggest that the effect of air pollution on the demand for medical insurance may be overestimated without considering the migration of people. Furthermore, the substitution between basic medical and commercial insurance is becoming increasingly evident with the reform of the medical system. The effect of air pollution on the demand for medical insurance is mainly observed on women, children, the elderly, and people with high income and educational levels, all of whom are more likely to take an avoidance behavior. This study suggests that environmental issues must be considered in future medical insurance designs due to avoidance behavior to mitigate the negative effects of poor air quality. Avoidance costs must also be considered when governments formulate environmental policies. • The causal relationship between air pollution and insurance demand is analyzed. • Instrumental variable approach deals with endogenous problems of air pollution. • China Health and Nutrition Survey (CHNS) data in 2004–2015 are used. • Air pollution rises the demand for medical insurance and has heterogeneous effects. • The medical reform is effective in mitigating negative effects of air pollution. [ABSTRACT FROM AUTHOR]