Air Pollution and Mental Health: Evidence from China

We estimate the short-run effect of air pollution on mental illness. Using the China Family Panel Studies covering 12,615 urban residents during 2014-2015, we find a significantly positive effect of air pollution-instrumented by thermal inversions—on mental illness measured by the Kessler Psychological Distress Scale. Specifically, a 1 SD (18.04 mu-g/m3) increase in PM2.5 concentrations over a month increases the probability of having a score value associated with severe mental illness by 7.58 percentage points, or 0.37 SD. We find suggestive evidence that indirect channels—like reduced exercise and physical health—play a role in the effect.