We combine survey responses to subjective well-being (SWB) questions with air pollution data to recover Chinese residents' valuation of air quality improvements. Motivated by theoretical models of ‘projection bias’ and ‘recency bias’, we posit that one's SWB (and valuation) is affected disproportionately by more recent experiences with air pollution, even though long-term air pollution is more detrimental to one's actual well-being.