As a response to the severe air quality problems in China, the Chinese Ministry of Environmental Protection in 2012 issued an updated Ambient Air Quality Standard (GB3095-2012), which set a stricter grade II PM10 standard. A successful implementation of this standard will have an impact on human health through reduction of exposure to air pollution in the population. Using the methods of adjusted human capital and value of statistical life, the authors in this article estimate the economic impact of a successful implementation of the updated Ambient Air Quality Standard on human health in China. The key results are: 1) The human health benefits from reaching the updated standard for PM10 would equal CNY 51.1 billion using adjusted human capital, accounting for 18.5% of total human health costs in China, and CNY 83.5 billion using the value of a statistical life; 2) the benefit of reaching the updated standard for PM10 is highest in the east coastal areas and gradually declines for more Western provinces; and 3) the marginal benefit of public health increases as the environmental quality standard PM10 improves. If the annual concentration of PM10 were to be reduced from the target number in the original grade II standard to that in the updated standard, the mortality rate of long-term exposure would be reduced by 6.5% due to reduced chronic exposure. In addition, if the annual concentration were to be reduced further from updated grade II to grade I standard, the mortality rate for long-term exposure would be lowered by 32.8%. |