Speaker
Description
Minerals are crucial for the modern economy, including the transition to a green economy, but mining often causes serious environmental and social issues. Mining has both potential positive effects on development, such as economic growth and job creation, but also negative effects like the resource curse and significant environmental damage. This study looks at the impacts of opening and closing mines on a global scale, rigorously analyzing the causal effect of different types of mining in different circumstances. We focus as outcomes on changes in local economic activity as proxies for economic development, and on vegetation and air quality as proxies for environmental impact. Our empirical strategy uses state-of-the-art methods to compare areas affected by mines to similar areas that are not. Our preliminary findings show that mine openings lead to more economic activity and worse air quality, suggesting economic benefits come with environmental costs. Turning to mechanisms, we begin by assessing the mitigating effect of voluntary industry agreements, studying the role of the largest industry sustainability initiative. So far, we find mixed results: their impact varies greatly depending on the group of mines considered, with both positive and negative effects depending on the context. In addition, we will examine comprehensively on a global scale the mitigating effect of producer-country and country-of-origin regulations.
| Keyword | Environmental Economics and Sustainability |
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