Impact of Air Pollution on Mental Health in India

There is extensive evidence linking air pollution exposure to physical health. Less is known about the mental health impacts of poor air quality, especially in developing countries. We use data from India and estimate the causal impact of air pollution exposure on feeling sad, experiencing cognitive difficulties, and feeling unable to control and cope with important things in life. We instrument for air pollution exposure using the annual number of nighttime thermal inversions and show that air pollution exposure in the previous calendar year significantly worsens mental health in the current year. We examine potential mechanisms and find that air pollution exposure negatively impacts self-reported physical health, worsens respiratory conditions, and increases the likelihood of experiencing sleeping difficulties. Accounting for mental health impacts of pollution exposure is critical to accurately estimating the true health costs of air pollution and designing optimal environmental policy.