We measure how taking into account air quality affects relative welfare levels and welfare convergence across countries. We use the equivalent variation framework by Jones and Klenow [(2016) American Economic Review 106(9), 2426–2457.] which takes into account consumption, life expectancy, inequality, and leisure and extend it with respect to e nvironmental quality in form of air pollution. Our results show that omitting environmental aspects from welfare accounting might lead to both a substantial over- or understatement of actual relative welfare and welfare developments for different (groups of) countries.