Intensive　air　pollution　prevention　and　control　actions　are　not　only　a　necessary　measure　to　improve　air　quality　and　enhance　people＇s　sense　of　well-being　but　also　serve　as　an　effective　way　to　facilitate　the　overall　green　transformation　of　the　society　and　economy　and　to　＇build　a　clean　and　beautiful　world　together.＇　Using　panel　data　from　Chinese　cities　spanning　2007　to　2021,　this　study　develops　a　progressive　difference-in-difference　model　that　is　grounded　on　China＇s　air　quality　ecological　compensation　(AQEC)　policies.　From　the　perspective　of　achieving　a　multidimensional　＇win–win–win＇　situation　in　economy,　ecology,　and　welfare,　this　study　explores　the　influence　and　its　action　mechanisms　of　AQEC　on　environmental　welfare　performance　(EWP).　The　findings　indicate　that　AQEC　significantly　enhances　EWP　and　fosters　a　＇win–win–win＇　scenario　for　the　economy,　ecology,　and　welfare.　Further　mechanism　tests　reveal　that　the　effects　of　AQEC　are　primarily　transmitted　through　macro　and　micro　mechanisms.　At　the　macro　level,　improvements　in　EWP　are　driven　by　the　optimization　of　resource　allocation　and　energy　structure.　At　the　micro　level,　the　expansion　of　the　employment　scale　and　the　improvement　of　the　residential　environment　have　a　positive　influence　on　EWP.　Heterogeneity　analysis　shows　that　AQEC　is　particularly　effective　in　enhancing　EWP　in　nonresource-based　cities,　nonkey　environmental　protection　focus　cities,　service-oriented　cities,　and　cities　with　higher　levels　of　green　innovation.　Moreover,　the　New　Energy　Demonstration　City　pilot　policy　significantly　strengthens　the　effect　of　AQEC　on　enhancing　EWP,　creating　a　synergistic　policy　effect.　This　study　offers　ideas　for　further　promoting　ecological　compensation　policies　in　the　field　of　atmospheric　pollution　control　as　well　as　additional　theoretical　support　and　empirical　evidence　backing　for　attaining　sustainable　development　and　enhancing　resident　environmental　welfare.　©　2024　Elsevier　Ltd