PM_2.5 Concentrations and Subjective Well-Being: Longitudinal Evidence from Aggregated Panel Data from Chinese...

Although haze pollution with PM_2.5 as the chief pollutant has become a critical threat worldwide, little research has examined the effects of PM_2.5 concentrations on subjective well-being. Based on a longitudinal aggregated panel dataset from Chinese provinces, this study investigates the effects of PM_2.5 concentrations on levels of happiness and the inequality of happiness. The results showed that high ground-level PM_2.5 concentrations decreased the average level of happiness and high PM_2.5 concentrations had stronger negative effects on the happiness of persons with high income than those with low income. In addition, PM_2.5 concentrations were also significantly negatively related to inequality of happiness in Chinese provinces. Further empirical tests showed that the negative effects of PM_2.5 concentrations on the inequality of happiness could be explained by the stronger influence of PM_2.5 concentrations on the subjective well-being of individuals with a higher initial level of happiness than those with a lower initial level of happiness. This confirms that PM_2.5 pollution can do harm to subjective well-being and reduce variations in the subjective well-being of individuals. The policy implications of controlling haze pollution and improving well-being are discussed.