Drilling, Oil-Gas Production, Pollution, and Infants' Health Outcomes

This study examines how oil and gas extraction activities affect birth outcomes among infants residing in affected localities. Drawing on comprehensive birth certificate data covering all U.S. counties from 1980 to 2012, we document that higher per-capita oil output exerts adverse effects on neonatal health. Our intent-to-treat estimates indicate that a one-standard-deviation increase in per-capita oil production corresponds to a 14 and 30 basis-point elevation in the incidence of low birth weight and premature birth, representing increases of approximately 2.3 and 3.4 percent relative to sample means. We demonstrate that selective fertility cannot account for these patterns. We further show that oil and gas production substantially elevates multiple indicators of ambient air pollution. Our evidence points to environmental degradation—particularly the deterioration of ambient air quality—as a principal mechanism driving these health effects. The results inform ongoing debates over the welfare implications of oil and gas extraction for host communities.