The article explores how environmental quality affects happiness and willingness to pay in China. It shows that better air quality makes people happier and more willing to pay higher prices, while water quality doesn't have the same effect. The government can boost willingness to pay for clean air, but not for clean water. People's perception of environmental quality influences their willingness to pay, but not their happiness. However, when people see the government making more effort, they feel happier and are more willing to pay for a better environment.