Economic Effects of Oil and Gas Development on Child Health in Colorado

Abstract

The oil and gas industry is a huge contributor to the economy of many countries and states worldwide. Even though the industry creates jobs and income, debates continue surrounding the environmental and human costs of the industry. There are many health concerns in particular because studies have shown that there is the potential for water and air pollution from emissions that are generated through oil and gas production processes. This study aims to contribute to the body of knowledge on this issue by exploring the potential economic effects of oil and gas development on child respiratory health. Using state in-patient data from the Agency for Research and Health Quality (ARHQ)-Healthcare Cost and Utilization Project (HCUP), I estimate difference-in-difference results to measure the potential effects of oil and gas production in Colorado over time, between the years 2004 and 2013 and for children between ages 0 and 19. Results reveal that over time from 2004 until 2013, oil and gas had no significant effect on child respiratory health. For individual years, results for 2013 show significant effects. The overall lack of effect of oil and gas development on child respiratory health from this study could be that the respiratory cases reported were as a result of factors other than air pollution from oil and gas activities.