A recent MIT
Urbanization, population growth, risingincomes
Even though the Chinese government set up a number of measuresto counter air pollution, “the results clearly indicate that ozoneand particulate matter have substantially impacted the Chineseeconomy over the past 30 years,”
Two phenomena can explain these results. On the one hand,urbanization and population growth led to an increasing numberbeing exposed to air pollution. On the other hand, rising incomesaccompanying China’s economic boom increased the damage associatedwith lost labor.