Haze pollution is a common side product of economics progress in most developing countries, among which China is no exception. The booming growth in Chinese economy since the opening-up reform heavily depends on the introduction of resource-intensive industries, including manufacturing, mining, fuel processing, chemical and electricity, etc (Wu et al., 2019; Chen et al., 2020). These sectors perform in an environmentally unfriendly way and consume massive natural resources. Accordingly, China’s haze pollution has become a worldwide issue as the emission of harmful atmosphere goes beyond its own borders and the negative spillovers effects are undertaken by other regions as well (D'Souza et al., 2020). The polluting industries, in combination with the use of wood and coal in stoves from millions of households makes the haze pollution situation more complex (Aunan, 2018). Depending on emission intensity and meteorological conditions, haze pollution varies across different regions. The densely populated city cluster of the Beijing-Tianjin-Hebei region has witnessed the high concentrations of PM2.5, while the Yangtze River Delta and the Pearl River Delta experience a less extent. Generally, the air quality is better in southern areas than that in the north (Zhang et al., 2022). Sever and persistent haze pollution has become an heavy burden not only to the sustainable development of economics, but also for national health care system. In order to mitigate the adverse effects of haze pollution, China has taken a series of measures. In 2005, the central government demanded that coal-fired plants should desulfurize before releasing gas waste. In 2011, another regulation on installation of selective catalytic reduction systems (SCR) was also implemented. The issue of haze pollution reduction was put on the top agenda in Chine’s 12th Five-Year Plan for the first time, targeting at 8% cut of sulfur dioxide, 10% cut of nitrogen dioxide, 16% cut of in carbon dioxide, and 16% reduction in energy consumption by the end of 2015 (Li et al., 2016).
A negative association has been found between exposure to polluted air and individual’s physical and mental well-being (Lepeule et al., 2012; Yin et al., 2020; Guo et al., 2021). Observations on asthma and chronic obstructive pulmonary disease (COPD) sharply increases, especially among old people (Brunekreef, 2002). Other diseases, cardiovascular diseases, diabetes, neurodevelopment, cognitive impairment included, are also found to be linked to exposure to particulate pollution (Franklin et al., 2015; Thiering & Heinrich, 2015). As Global Burden of Disease (GBD) project reported, poor air quality is responsible for 1.6 million deaths in China and 4.2 million deaths worldwide in 2015 alone (Forouzanfar et al., 2016). Haze pollution related deaths comprised 17 per cent of the total deaths in China in that year, among the highest rate in the world (Song et al., 2017). In addition to the physical damage caused by poor air quality, the mental illnesses resulting from ambient haze pollution also attracts a lot of attention (Dzhambov et al., 2018; Gu et al., 2020; Sass et al., 2017). For example, Ahumada & Iturra (2021) find that the particulate matter in the air significantly decreases people’s self-reported well-being in Chile, and citizens are willing to pay 7.46–11.98 USD per month to improve the air quality. Power et al. (2015) investigates the impact of haze pollution on residents’ mental health, and their results suggest that symptoms of anxiety significantly increases with higher exposure to fine particulate matter (PM2.5). Resulting from the polluted air, the health cost rises, either on medical treatment, or health insurance (Chang et al., 2018).
Recently, researchers has focused on whether haze pollution can influence people’s migration behavior. For instance, Germani et al. (2021) explore whether population moves away from provinces with higher levels of haze pollution emissions towards those characterized by lower levels. Considering other contextual factors associated with migration streams, the increasing environment risks related to poor air quality is still influential in shaping internal migration choices among Italian provinces. Similar evidence has also been found in other regions and migration patterns (Hu et al., 2022). It is recognized that ‘vote by foot’ rule stands in the immigration decision. Considering individual’s characteristics, younger people and males have a higher probability of migrating than their counterparts, escaping from the environmental stressors caused by haze pollution. This phenomenon can result from the personal psychological mechanism of cost-benefit judgment. The workforce as a whole, thus, can suffer from a brain drain (Khuc wt al., 2022).
Although the adverse effect of polluted air on individual’s migration decision is well documented in the literature, its effect on attracting people may not be fully explored. Haze pollution is one of the main kinds of pollution among the world which is mostly function of economic growth. The relationship between economic growth and pollution is discussed as Environmental Kuznets Curve (EKC) hypothesis (Akbostancı et al., 2009; Dinda et al., 2000; Soytas & Sari, 2009). As this theory unveils, at the first stage of the inverted U-shaped relationship, the increase in industrial activity with energy-intensive production leads to an increase in pollutant emissions. In this case, the extent of haze pollution acts as a signal indicating the economic development and employment. Although polluted environment may hamper workers move around, economic factors still counts when migrants make decisions. In Chinese context, industry structure is undergoing transformation and the relationship between air pollutants and economic development is just at the appearance of the inflection point. Thus, before reaching the highest pollution level, cities with poorer air quality still have appealing for migrations.
The current study can contribute to the eco-economics literature in two-fold ways. First, we dig into the causal inference between haze pollution and migrants’ settlement intention. Previous research mostly uncover a negative relationship between these two indicators and emphasize the adverse effect of polluted air. However, the signal effect of haze pollution suggesting high economic development and more working opportunities may be ignored. This ‘income’ effect of haze pollution functions as a pulling force, attracting rural migrants move from low-polluted areas to heavier regions. Thus, the relationship between haze pollution and rural migrants’ long-term settlement intention presents an inverted u shape rather than declined linearity. Second, this study also shed some light on the heterogeneous effect of haze pollution on different population and regions.
The remainder of this paper is organized as follows. In section 2, we present the theoretical analysis of the current study. In section 3, we describe the data source, outcome and explanatory variables, and model specifications. In section 4, the statistics description, main results, heterogeneous analysis, robustness check and mechanism test are reported. Section 5 presents discussion and conclusions of this work.