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Rural Roads, Farm Labor Exits, and Crop Fires

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  • Teevrat Garg
  • Maulik Jagnani
  • Hemant K. Pullabhotla

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: 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 rates by 5.5 percent in downwind locations.

Suggested Citation

  • Teevrat Garg & Maulik Jagnani & Hemant K. Pullabhotla, 2024. "Rural Roads, Farm Labor Exits, and Crop Fires," American Economic Journal: Economic Policy, American Economic Association, vol. 16(3), pages 420-450, August.
    • Handle: RePEc:aea:aejpol:v:16:y:2024:i:3:p:420-50
    DOI: 10.1257/pol.20220422
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    References listed on IDEAS

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    1. Anderson, Michael L., 2008. "Multiple Inference and Gender Differences in the Effects of Early Intervention: A Reevaluation of the Abecedarian, Perry Preschool, and Early Training Projects," Journal of the American Statistical Association, American Statistical Association, vol. 103(484), pages 1481-1495.
    2. Sam Asher & Tobias Lunt & Ryu Matsuura & Paul Novosad, 2021. "Development Research at High Geographic Resolution: An Analysis of Night-Lights, Firms, and Poverty in India Using the SHRUG Open Data Platform," The World Bank Economic Review, World Bank, vol. 35(4), pages 845-871.
    3. McCrary, Justin, 2008. "Manipulation of the running variable in the regression discontinuity design: A density test," Journal of Econometrics, Elsevier, vol. 142(2), pages 698-714, February.
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    More about this item

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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