Paulina Oliva

Does the Effect of Pollution on Infant Mortality Differ Between Developing and Developed Countries? Evidence from Mexico City

Much of what we know about the marginal effect of pollution on infant mortality is derived from developed country data. However, given the lower levels of air pollution in developed countries, these estimates may not be externally valid to the developing country context if there is a nonlinear dose relationship between pollution and mortality or if the costs of avoidance behavior differs considerably between the two contexts. In this paper, we estimate the relationship between pollution and infant mortality using data from Mexico. We find that an increase of 1 parts per billion in carbon monoxide (CO) over the last week results in 0.0032 deaths per 100,000 births, while a 1 μg/m3 increase in particulate matter (PM10) results in 0.24 infant deaths per 100,000 births. Our estimates for PM10 tend to be similar (or even smaller) than the U.S. estimates, while our findings on CO tend to be larger than those derived from the U.S. context. We provide suggestive evidence that a non-linearity in the relationship between CO and health explains this difference.

Environmental Regulations and Corruption: Automobile Emissions in Mexico City

Emission regulations become more prevalent in developing countries, but they may be compromised by corruption. This paper documents the prevalence of corruption and the effectiveness of vehicle emission regulations in Mexico City. I develop a statistical test for identifying a specific type of cheating that involves bribing center technicians. I also estimate a structural model of car owner retesting and cheating decisions. Results suggest that 9.6 percent of car owners paid US

The Impact of Inspections on Plant-Level Air Emissions

20 to circumvent the regulation. Eliminating cheating and increasing the cost of retests would reduce emissions by 3,708 tons at a high cost for vehicle owners.

Implications of Climate Change for Children in Developing Countries

Abstract Each year, the United States conducts approximately 20,000 inspections of manufacturing plants under the Clean Air Act. This paper compiles a panel dataset on plant-level inspections, fines, and emissions to understand whether these inspections actually reduce air emissions. We find plants reduce air emissions by fifteen percent, on average, following an inspection under the Clean Air Act. Plants that belong to industries that typically have low abatement costs respond more strongly to an inspection than those who belong to industries with high abatement costs.

The Effect of Air Pollution on Migration: Evidence from China

Summary: Climate change may be particularly dangerous for children in developing countries. Even today, many developing countries experience a disproportionate share of extreme weather, and they are predicted to suffer disproportionately from the effects of climate change in the future. Moreover, developing countries often have limited social safety nets, widespread poverty, fragile health care systems, and weak governmental institutions, making it harder for them to adapt or respond to climate change. And the fact that many developing countries have high birth rates and high ratios of children to adults (known as high dependency ratios) means that proportionately more children are at risk there than in the developed world. In this article, Rema Hanna and Paulina Oliva delve into climate change’s likely implications for children in developing countries. Such children already face severe challenges, which climate change will likely exacerbate. In particular, most people in developing countries still depend primarily on agriculture as a source of income, and so anything that reduces crop yields—such as excessive heat or rain—is likely to directly threaten the livelihoods of developing-country families and their ability to feed their children. Poor nutrition and economic disruption are likely to lower children’s scholastic achievement or even keep them out of school altogether. Children in developing countries also face more-severe threats from both air and water pollution; from infectious and parasitic diseases carried by insects or contaminated water; and from possible displacement, migration, and violence triggered by climate change. How can we temper the threat to children in developing countries? Hanna and Oliva write that we should design and fund policies to shield children in developing nations from the harm caused by climate change. Such policies might include developing new technologies, inventing more-weather-resistant crops, improving access to clean water, increasing foreign aid during disasters, and offering more assistance to help poor countries expand their safety net programs.

The Distribution of Environmental Damages

This paper looks at the effects of air pollution on migration in China using changes in the average strength of thermal inversions over five-year periods as a source of exogenous variation for medium-run air pollution levels. Our findings suggest that air pollution is responsible for large changes in inflows and outflows of migration in China. More specifically, we find that independent changes in air pollution of the magnitude that occurred in China in the course of our study (between 1996 and 2010) are capable of reducing floating migration inflows by 50 percent and of reducing population through net outmigration by 5 percent in a given county. We find that these inflows are primarily driven by well educated people at the beginning of their professional careers, leading to substantial changes in the sociodemographic composition of the population and labor force of Chinese counties. Our results are robust to different specifications, including simple counts of inversions as instruments, different weather controls, and different forms of error variance.

Air Pollution and Mental Health: Evidence from China

Most regulations designed to reduce environmental externalities impose costs on individuals and firms. An active body of research has explored how these costs are disproportionately born by different sectors of the economy and/or across different groups of individuals. However, much less is known about the distributional characteristics of the environmental benefits created by these policies, or conversely, the differences in environmental damages associated with existing environmental externalities. We review this burgeoning literature and develop a simple and general framework for focusing future empirical investigations. We apply our framework to findings related to the economic impact of air pollution, deforestation, and climate, highlighting important areas for future research. A recurring challenge to understanding the distributional effects of environmental damages is distinguishing between cases where (i) populations are exposed to different levels or changes in an environmental good, and (ii) where an incremental change in the environment may have very different implications for some populations. In the latter case, it is often difficult to empirically identify the underlying sources of heterogeneity in marginal damages, as damages may stem from either non-linear and/or heterogeneous damage functions. Nonetheless, understanding the determinants of heterogeneity in environmental benefits and damages is crucial for welfare analysis and policy design.

The Effect of Pollution on Labor Supply: Evidence from a Natural Experiment in Mexico City

A large body of literature estimates the effect of air pollution on health. However, most of these studies have focused on physical health, while the effect on mental health is limited. Using the China Family Panel Studies (CFPS) covering 12,615 urban residents during 2014 – 2015, we find significantly positive effect of air pollution – instrumented by thermal inversions – on mental illness. Specifically, a one-standard-deviation (18.04 μg/m3) increase in average PM2.5 concentrations in the past month increases the probability of having a score that is associated with severe mental illness by 6.67 percentage points, or 0.33 standard deviations. Based on average health expenditures associated with mental illness and rates of treatment among those with symptoms, we calculate that these effects induce a total annual cost of USD 22.88 billion in health expenditures only. This cost is on a similar scale to pollution costs stemming from mortality, labor productivity, and dementia.