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Structural transformation and environmental externalities

Teevrat Garg, Maulik Jagnani and Hemant Pullabhotla

Papers from arXiv.org

Abstract: Even as policymakers seek to encourage economic development by addressing misallocation due to frictions in labor markets, the associated production externalities - such as air pollution - remain unexplored. Using a regression discontinuity design, we show access to rural roads increases agricultural fires and particulate emissions. Farm labor exits are a likely mechanism responsible for the increase in agricultural fires: rural roads cause movement of workers out of agriculture and induce farmers to use fire - a labor-saving but polluting technology - to clear agricultural residue or to make harvesting less labor-intensive. Overall, the adoption of fires due to rural roads increases infant mortality rate by 5.5% in downwind locations.

Date: 2022-12
New Economics Papers: this item is included in nep-agr, nep-dev and nep-env
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Citations: View citations in EconPapers (1)

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