Abstract
Along with China's rapid economic growth, the environmental externality in the country is getting more and more serious. China's environmental externality is accompanied by environmental inequality, which presents two characteristics: First, the health loss caused by environmental externality is concentrated in the elderly and children. We take Beijing as an empirical analysis to conclude that children (0–4 years old) are the largest group suffered from respiratory disease; while the seniors are the largest group suffered from cardiovascular disease. Second, China's environmental inequality is mainly caused by the transfer of industries from urban to rural areas/suburbs. The villagers in poor rural areas are the biggest victims. China's environmental inequality is reflected particularly by the phenomenon of “cancer villages” which has existed ever since the end of 1970s. Finally, policy recommendations are provided for reducing China's environmental externality and inequality.
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