Air pollution risks human mental health: an implication of two-stages least squares estimation of interaction effects

The study investigates the relationship between air pollution and the status of human mental health using the data of the China Migrant Dynamic Survey (CMDS), 2014. Various econometric methods were used. Particularly, the ordinary least square (OLS) was used to estimate the parametric impact of mental health. Moreover, a robustness test was used to estimate negative impact of air pollution on mental health. Results found that air pollution significantly increased psychological disorder. The concentration of PM2.5 in the air leads to higher prominence of the four negative emotions such as nervous, depression, powerless, and restless or fidgety. After introducing the instrumental variable to solve the endogenous problem, the impact of air pollution on the level of the mental illnesses was still significant and negative. Results are also evident that air pollution has heterogeneity to the negative status of residents' mental health. Specifically, it has a significant and negative impact on women, rural and urban population, and middle- and low-income groups. The study results suggest that the government must have to revise the environmental regulation policy reduce the negative impact on human health.