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. We study the impact of these mining restrictions on pregnancy outcomes, finding reductions in 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. As mechanisms, we show that the restrictions on mining reduced overall household consumption but improved air quality in treated districts. We also find evidence of income-selected fertility, with mothers in treated districts showing higher income quintiles despite overall declines in household consumption. Our results suggest that the environmental benefits of the mining restrictions 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