자원·환경경제연구 ISSN:1229-9146(Print) Environmental and Resource Economics Review

This paper examines how temperature variations affect expenditure in South Korea’s Medical Aid program. By merging administrative data at the Si-Gun-Gu level with inter-annual fluctuations in daily maximum temperatures, this paper uncovers that exposure to warmer and colder temperatures is associated with higher expenditure on pharmaceutical and outpatient services, respectively. An additional day with a maximum temperature between 28°C and 33°C leads to a 0.1% increase in pharmaceutical expenditure (approximately 6.6 million KRW), while an additional day with a maximum temperature between 3°C and 8°C leads to a 0.1% increase in outpatient expenditure (approximately 12.2 million KRW). This pattern is driven by increased treatment intensity per patient or case rather than a rise in total visits or patient volumes. In addition, the sensitivity to colder temperatures is positively correlated with heating degree days and medically underserved area status, highlighting regional disparities in climate vulnerability among beneficiaries.