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This paper presents a simultaneous equation, knowledge and perception-based averting behavior model of health risk caused by air pollution, with application to the Jinchuan mining area, China. Three types of averting behavior are distinguished: (a) purchases of purifying equipment, plants, or masks; (b) purchases of preventive or curing medication or food; and (c) adjustment of daily outdoor activities. Two types of perceived health risk are distinguished: (a) risk due to the intensity of exposure and (b) risk caused by the hazardousness of pollutants. The estimations show that an increase in perceived air pollution of two or more days a week leads to a restriction of outdoor activities of approximately 90 min per person per week. Another result is that the average annual household expenditure on air filters, foods, or medicines is 206.25 CNY (US$ 31.73) to prevent the hazardousness of air pollution. The total willingness to pay for air quality improvement is 2.95% of annual net household income. Because air quality improving investments can only be implemented in the medium or long run, daily disclosure of air quality is an adequate short-run policy handle to assist residents to take the right kind and level of risk-reducing actions. [ABSTRACT FROM AUTHOR]

This study investigates people’s behavioral responses to air pollution information in China. We find that elevated air pollution levels are positively associated with higher online searches for anti-PM2.5 masks and air filters. A 10 µg/m3 increase in PM2.5 is associated with a 3.6-8.4% increase of mobile queries for anti-PM2.5 masks, and 1.1-4.7% for air filters. Using a regression discontinuity design, we find that a haze alert issued when PM2.5 concentration exceeds 250 µg/m3 would double online queries for anti-PM2.5 masks and air filters. Online searches are also positively correlated with online sales. One day of severe pollution would induce a cost of 0.2 million USD on online expenditure on anti-PM2.5 masks. Some suggestive evidence shows that people in richer and polluted cities tend to search more for anti-PM2.5 masks and air filters than those in poorer and cleaner cities. [ABSTRACT FROM AUTHOR]