ABSTRACT
Under the background of the far-reaching impact of the COVID-19 epidemic on global economic development, the interactive effect of economic recovery and pollution rebound makes the research topic of air pollution and human health receive attention again. Matching a series of new datasets and employing thermal inversion as an instrumental variable, this study investigates the physical and mental health effect of air pollution jointly in China. We find that in the short run, the above inference holds for both physical and mental health. These short-run influences are credible after a series of robustness checks and vary with different individual characteristics and geographical locations. We also find that in the long run, air pollution only damages mental health. Finally, this study calculates the health cost of air pollution. The above findings indicate that in China, the effect of air pollution on physical and mental health cannot be ignored. The government needs to consider the heterogeneity and long-run and short-run differences in the health effects of air pollution when formulating corresponding environmental and medical policies.