In this paper, we construct a model in which the impact of pollution on health is exerted through both direct and indirect channels. The indirect channel is captured by a production func-tion in which the principal health-improving factor, income growth, can be realized only in the cost of pollution increase. This model is then tested by the aggregated chronicle disease data in over 78 Chinese counties. Our results show, after attaining the threshold of 8 μg/m2, continuous increase in industrial SO2 emission density will lead the ratio of population suffering chronicle diseases, among which respiratory diseases occupy a significant proportion, to rise. However, owing to technological progress in pollution control activities, the needed SO2 emission to produce one unit of GDP diminishes with time. Therefore, the negative effect from pollution augmentation on public health seems to be recompensed more and more by the positive effect of economic growth. In this paper, we construct a model in which the impact of pollution on health is exerted through both direct and indirect channels. The indirect channel is captured by a production func-tion in which the principal health-improving factor, income growth, can be This results in only the cost of pollution increase. This model is then tested by the aggregated chronicle disease data in over 78 Chinese counties. Our results show, after attaining the threshold of 8 μg / m2, continuous increase in industrial SO2 emission density will lead the ratio of population suffering chronicle diseases, among which respiratory diseases occupy a significant proportion, to rise. However, owing to technological progress in pollution control activities, the needed SO2 emission to produce one unit of GDP diminishes with time. Therefore, the negative effect from pollution augmentation on public health seems to be recompensed more and more by the positive effect of economic growth.