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Early Exposure to Hazardous Waste and Academic Achievement: Evidence from a Case of Environmental Negligence

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  • Tomás Rau
  • Sergio Urzúa
  • Loreto Reyes

Abstract

This paper estimates the effect of early exposure to toxic waste on academic achievement. We analyze longitudinal information from individuals attending primary and secondary schools in Arica (northern Chile). Between 1984 and 1989, the city received more than 20,000 tons of toxic chemicals containing high concentrations of lead, arsenic, and mercury. We implement difference-in-differences and reduced-form models to document robust relationships between residential and school proximity to the polluted area and academic performance. We find that attending a school 1 kilometer farther away from the polluted area significantly increases math and language scores by 0.09 and 0.07 standard deviations, respectively. Finally, we use georeferenced blood tests and administrative records on labor income to estimate that children living in the area could lose up to US$60,000 over the course of their lifetime as a result of their early life exposure to toxic waste.

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  • Tomás Rau & Sergio Urzúa & Loreto Reyes, 2015. "Early Exposure to Hazardous Waste and Academic Achievement: Evidence from a Case of Environmental Negligence," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 2(4), pages 527-563.
    • Handle: RePEc:ucp:jaerec:doi:10.1086/683112
    DOI: 10.1086/683112
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    7. Persico, Claudia L., 2020. "Can Pollution Cause Poverty? The Effects of Pollution on Educational, Health and Economic Outcomes," IZA Discussion Papers 12965, Institute of Labor Economics (IZA).
    8. John Voorheis, 2017. "Air Quality, Human Capital Formation and the Long-term Effects of Environmental Inequality at Birth," CARRA Working Papers 2017-05, Center for Economic Studies, U.S. Census Bureau.
    9. Karen Clay & Margarita Portnykh & Edson Severnini, 2021. "Toxic Truth: Lead and Fertility," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 8(5), pages 975-1012.
    10. Hiwatari, Masato & Yamada, Daichi & Narita, Daiju & Hangoma, Peter & Chitah, Bona, 2024. "Toxic pollution and poverty: Economic impacts of lead (Pb) exposure on household welfare in Zambia," Ecological Economics, Elsevier, vol. 221(C).
    11. Klemick, Heather & Mason, Henry & Sullivan, Karen, 2020. "Superfund cleanups and children’s lead exposure," Journal of Environmental Economics and Management, Elsevier, vol. 100(C).
    12. Rivera, Nathaly M. & Ruiz-Tagle, J. Cristobal & Spiller, Elisheba, 2024. "The health benefits of solar power generation: Evidence from Chile," Journal of Environmental Economics and Management, Elsevier, vol. 126(C).
    13. Adam Theising, 2019. "Lead Pipes, Prescriptive Policy and Property Values," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(3), pages 1355-1382, November.
    14. von der Goltz, Jan & Barnwal, Prabhat, 2019. "Mines: The local wealth and health effects of mineral mining in developing countries," Journal of Development Economics, Elsevier, vol. 139(C), pages 1-16.
    15. Sabine Bacouël-Jentjens & Grégory Levieuge & José Riascos & Camelia Turcu, 2023. "Sustainable development and the extractive industry. An assessment of the Mexican case," Working Papers 2023.17, International Network for Economic Research - INFER.
    16. Syed Hasan & Odmaa Narantungalag, & Martin Berka, 2022. "No pain, no gain? Mining pollution and morbidity," Discussion Papers 2203, School of Economics and Finance, Massey University, New Zealand.
    17. Manuel Barron & Sam Heft-Neal & Tania Perez, 2018. "Long-term effects of weather during gestation on education and labor outcomes: Evidence from Peru," Working Papers 134, Peruvian Economic Association.
    18. Jennifer A. Heissel & Claudia Persico & David Simon, 2022. "Does Pollution Drive Achievement? The Effect of Traffic Pollution on Academic Performance," Journal of Human Resources, University of Wisconsin Press, vol. 57(3), pages 747-776.
    19. Manuel Barron, 2018. "In-utero weather shocks and learning outcomes," Working Papers 137, Peruvian Economic Association.
    20. Linh Pham & Travis Roach, 2024. "Spillover benefits of carbon dioxide cap and trade: Evidence from the Toxics Release Inventory," Economic Inquiry, Western Economic Association International, vol. 62(1), pages 449-467, January.
    21. Aggeborn, Linuz & Öhman, Mattias, 2017. "The Effects of Fluoride in the Drinking Water," Working Paper Series 2017:20, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    22. Chen, Xiaohong & Zhao, Jinhua & Zhou, Li, 2024. "Knowledge protects against pollution: The health effects of the cadmium rice event in China," World Development, Elsevier, vol. 175(C).
    23. Dennis Guignet & Christoph Nolte, 2021. "Hazardous Waste and Home Values: An Analysis of Treatment and Disposal Sites in the U.S," Working Papers 21-07, Department of Economics, Appalachian State University.

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