Health Effects of Natural Resource Extractions: Evidence from Oil-Gas Production and Infants’ Birth Outcomes

• In Event: Lightning Session: Health Policy & Natural Resource, Energy, and Environmental Policy

Abstract

AbstractThis paper investigates the impact of oil and gas extraction on infants’ health outcomes, focusing on prenatal exposure to environmental pollution associated with drilling activities. Utilizing the universe of U.S. birth records from 1980 to 2012 and county-level oil and gas production data, we conduct a comprehensive analysis across all U.S. counties. The identification strategy relies county fixed effects, region-by-year fixed effects, county-specific linear trends, and extensive socioeconomic controls. This enables us to isolate the impact of oil-gas activity from other concurrent changes in local demographics and economic conditions. We find no strong evidence of endogenous fertility responses that could bias the estimated health effects.Our findings indicate that increased oil production is significantly associated with adverse birth outcomes. Specifically, a one-standard-deviation rise in per capita oil extraction corresponds to a 14 and 30 basis-point increase in the incidence of low birth weight and preterm births, respectively—equivalent to 2.3% and 3.4% increases from their respective means. Moreover, the results suggest that the negative health impacts are concentrated at the lower end of the birth weight and gestational age distributions. Complementary analysis using monitor-based pollution data from the EPA reveals that oil production is associated with substantial increases in ambient concentrations of ozone, carbon monoxide, lead, PM10, and volatile organic compounds. These findings support the hypothesis that environmental degradation—particularly air pollution—is a key mechanism linking oil extraction to deteriorating birth outcomes.These results have important implications for ongoing policy debates about the local costs and benefits of fossil fuel extraction, particularly as communities and regulators weigh the economic benefits of drilling against its potential public health consequences.Keywords: Oil and Gas Production, Infant Health, Air Pollution, Birth Outcomes, Environmental EconomicsJEL Codes: H75, I18, Q33, Q53

Author

• Hamid Noghanibehambari, Austin Peay State University
  Presenting Author