This study explores the adverse impact of air pollution, caused by emissions from brick kilns, on the children’s cognitive ability and physical health. A survey of children between the age of 5 and 12 years was conducted in the Peshawar district of KP province of Pakistan. The concentrations of particulate matters (PM10 and PM2.5) were found to be higher in areas within 3 km radius of brick kilns (treatment group) compared to those that are outside of this defined radius (comparison group). By employing propensity score matching method, the study found that exposure to brick kiln pollution has significant negative effect
on children’s cognitive ability and physical health. These results advocate that, in addition to increasing the direct health cost, brick kiln pollution also has adverse long-term welfare consequences through indirect and unobservable effects.