The impact of industrialization is manifold causing more employment, increased export, GDP growth but causing deterioration in the environment situation Air pollution, odourless air, smelly air which harms health, destroys plants and damages property. The effect of pollutants like SO2 is primarily by industrialisation and increasing growth of population. CO2 is also a key pollutant in the atmosphere and the sources of CO2 are fossil fuel burning and deforestation. CO2 is a good transmitter of sunlight but partially restricts infrared radiation going back from the earth into space. Particulates are tiny particles of solid or liquid matter present in the atmosphere and they are very helpful for the operations in the atmosphere like the formation of clouds and fog, absorbing gases in the atmosphere and creating reactions by being catalysts and the decomposition of ozone is possible only by dust, maintain the radiation balance and heat balance of the earth, and helps in the absorption capacity of the gases. The consequences of Air Pollution are severe on the environment, ecological impact, groundwater, soil, air, living organisms, acid rain, global warming, the greenhouse effect, climate changes etc. Ozone affects the upper layers of the skin, the tear ducts, lungs, biochemical, morphologic, functional, and immunological disorders (Lippmann, 1989). They are an important risk factor for lung cancer. Air pollution is also harmful to the environment and causes severe and permanent issues to a country. Considering the impact of Air Pollution, the Government of India has amended the AIR (Prevention and Control of Pollution) Act, 1981 vide G.O.Ms.3, DT.03.09.1983. This article is exploring the spatial and intertemporal spill-over effects of Air Pollution in Chennai City