Health vs Wealth: The Impact of Mining on Pregnancy Outcomes

Abstract

In 2011, the Supreme Court of India implemented restrictions that ultimately banned mining for over 150 iron ore mines due to environmental concerns. Using data on birth outcomes from two national surveys in a difference-in-differences approach, we find reduced stillbirths and low birth weight deliveries for births in regions subject to the restrictions relative to control regions. We do not find statistically significant effects on medically terminated pregnancies or maternal anemia. Our analysis reveals that these effects are driven by two primary mechanisms: improved air quality in treated districts and a change in the income composition of mothers. Despite overall declines in household consumption, the income quintiles of mothers in treated districts increased relative to controls, suggesting income-selected fertility. We also observe reduced household income, which may partially offset the positive effects. Our results indicate that the combined environmental benefits and changes in maternal demographics outweighed the local economic costs in terms of pregnancy outcomes. These findings have important implications for understanding the health-wealth trade-offs in resource extraction and policies related to India's energy transition and future mine closures.

Keywords: pregnancy outcomes, stillbirth, india, mining, air quality, resource extraction

JEL Classification: I15, Q32, Q53, Q56, O13