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The present study attempts to trace out the multilateral relation between the levels of air pollution, health related hazards as well as the function of the Governance in terms of expenditure performance in mitigating climate change and environmental policies. An additional attempt has been done to trace out the role of locational factors in affecting the pollution induced health hazards across the states. Databases have been collected from Compendium of Environmental Statistics published by CSO (Central Statistical Organization), Planning Commission and the National Family Health Survey I, II and III to capture the changing scenario of air quality levels, health related hazards and Government responses from 1992–93 to 2005–06.. In order to capture the aggregative effect of pollution level, especially air pollution, an Integrated Air-Quality Index have been constructed at the state-level on the basis of ‘Exceedance …