Although China has made tremendous economic progress in recent years, air pollution continues to exact significant health and economic costs. Using pollution data from 38 Chinese cities and China-based epidemiological functions, this paper estimates some of the economic benefits of reducing urban air pollution. It calculates the averted mortality which would result from the clean-up of particulates, sulphur dioxide and nitrogen dioxide—a pollutant not included in most previous China studies. The paper expands on earlier studies by examining the impact of seasonal variations in pollution levels. Finally, the monetary valuation of pollution-related averted mortality is developed using a China-based valuation study and, for a number of cities, the valuation is compared with city-level GDP.
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