This paper assesses the macroeconomic and sectoral impacts of the "Clean Air Policy  Package" proposed by the European Commission in December 2013. The analysis  incorporates both the expenditures necessary to implement the policy by 2030 and the  resulting positive feedback effects on human health and crop production. A decomposition  analysis identifies the important drivers of the macroeconomic impacts. We show that while  expenditure on pollution abatement is a cost for the abating sectors, it also generates an  increased demand for the sectors that produce the goods required for pollution abatement.  Moreover, we find that positive feedback effects, particularly those related to health can  offset the resource costs associated to the clean air policy and result in positive  macroeconomic impacts for the economy of the European Union.