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Fine particulate pollution (PM_2.5) is a leading mortality risk factor in the People's Republic of China (PRC) and many Asian countries. Current studies of PM_2.5 mortality have been conducted at the national and provincial levels, or at the grid-based micro level, and report only the exposure index or attributable premature deaths. Little is known about the welfare implications of PM_2.5 mortality for urban areas. In this study, we estimate the total cost of PM_2.5 mortality, the benefit of its reduction achieved through meeting various air quality targets, and the benefit of mortality reduction achieved through a uniform 10 micrograms per cubic meter decrease in PM_2.5 concentration in the urban areas of 300 major cities in the PRC. Significant heterogeneity exists in welfare indicators across rich versus poor and clean versus dirty cities. The results indicate that cities in the PRC should accelerate the fine particulate pollution control process and implement more stringent air quality targets to achieve much greater mortality reduction benefits.