Net Effects of Coal Mining at a Local Level in India

  • Author / Creator
    Pandey, Himani
  • International coal prices strongly impact the local labor markets in coal mining regions of India. In this thesis, I make use of three distinguished and unique individual level data sets from India to examine the effects of coal mining on the socio-economic outcomes for individuals and firms in the local vicinity of these mines. Presence of coal mines in an Indian region along with the international coal price shock over the time period 1999-2011, is used as an economic shock and instrument in determining the impact on education and health of young children in coal regions as well as on the productivity of firms in these regions.

    In the first paper, I examine the local effects of coal mining on schooling attendance of children in the age-group of 5-14 years (school-going age) living in the nearby coal mining regions of India during the period 1999-2011. A difference-in-difference estimation, by exploiting the spatial and temporal variation in mining, reveals that, the probability to attend school for any child in the mining region increases by 4% points when exposed to a doubling in the international coal price. On evaluating the different mechanism through which these effects are transmitted, the positive income shocks resulting in higher 'returns to education' and positive 'wealth effects' dominate the negative substitution effects emanating from rising wages and prices.

    In the second paper, I analyze how the international coal price shocks affect the nutritional status of young children (age <5 years) in coal mining regions of India. Prevalence of 'stunting' and 'underweight' tendencies in these children is evaluated with focus on the channels through which these effects are transmitted. The paper highlights that prevalence of stunting and underweight reduces significantly in children living in these regions owing to strong 'income effects' through greater time and monetary investments in child's health. The study also finds evidence for the prevalence of ‘son-preference’ in household decision making regarding investments in child's health in coal regions of India.

    In the third paper, I make use of firm level data in India to evaluate the impact of coal mining on firm productivity in the treated regions. Firm production is enhanced significantly in these regions owing to greater demand of local inputs especially labor. Firm productivity is enhanced specifically for firms in the manufacturing sector due to benefits of agglomeration effects as well technological advancements.

    These analysis highlight the socio-economic benefits that can derived be from this extractive industry at a local level, thus stressing on further utilizing the unused capacity for mining in a sustainable manner for the overall development in the nation.

  • Subjects / Keywords
  • Graduation date
    Fall 2021
  • Type of Item
  • Degree
    Doctor of Philosophy
  • DOI
  • License
    This thesis is made available by the University of Alberta Libraries with permission of the copyright owner solely for non-commercial purposes. This thesis, or any portion thereof, may not otherwise be copied or reproduced without the written consent of the copyright owner, except to the extent permitted by Canadian copyright law.