Air Pollution, Environmental Protection Tax and Well-Being

The effective control of air pollution to advance human health and improve well-being has risen to the forefront of discussion in recent years. Based on China's 2019 environmental protection tax data and China Social Survey (CSS) data, this paper studies the effects of subjective air pollution and the environmental protection tax on residents' well-being using an econometric mediation effect model. The research conclusions are as follows: (1) Subjective air pollution can significantly reduce residents' well-being, (2) an environmental protection tax can significantly improve residents' well-being and it can eliminate some of the negative influence of subjective air pollution on residents' well-being, and (3) the grouping test of residents' income, regional distribution, urban and rural structure, age structure, gender structure, and other variables shows that the effects of subjective air pollution on residents' well-being are heterogeneous among different populations. After further endogeneity testing with the instrumental variables method, adjusting the primary variables, and altering the research procedures, the results are still robust. Based on these findings, we should vigorously promote the development of ecological civilization and good air quality and support reforming the environmental protection tax system to enhance well-being. It is also necessary to shift from a crude development model to a green industry and business model. While emphasizing social equity and production efficiency, we should ensure the synchronous development of cities and villages. Additionally, tangible steps should be implemented to raise people's incomes, expand young people's work options, and enhance their satisfaction. The article focuses on the impact of subjective air pollution on residents' well-being, adding air pollution to the factors affecting well-being. Furthermore, the article finds that the environmental protection tax has two advantages: it can govern air pollution and promote green development, and, at the same time, it can enhance social harmony and improve residents' well-being.