Mira Korb (UC Davis practice job talk)

"Digging for Answers: The Effects of Mining Pollution Externalities on Local Agricultural Output in Africa"

• Abstract: The extraction of critical minerals and metals in Sub-Saharan Africa is expected to intensify in the coming years, potentially displacing existing economic activities. Mining can impact local agriculture in two key ways: through demand shocks, which raise the returns to inputs in non-agricultural sectors, and pollution shocks, which lower returns within agriculture itself. This paper examines the extent to which pollution externalities from industrial mining affect local agricultural output in Sub-Saharan Africa. Combining mine geolocations, topographical data, and satellite-based measures of pollution, crop yields, and weather, I identify areas around mines that are disproportionately exposed to pollution but not the economic effects of local demand booms. Leveraging variation around the openings of over 300 mines across the region, I find that air and water pollution externalities account for 44% of the overall reduction in yields caused by industrial mining, with water pollution being over 10 times more influential than air pollution. Furthermore, I use machine learning methods to document that negative effects on local yields are 2-3 times more severe for mines in countries with weaker governance and regulatory environments.