Essays on natural resources, energy, and development : a thesis presented in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Economics, School of Economics and Finance, Massey University, Palmerston North, New Zealand
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Date
2022
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Massey University
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Abstract
This thesis examines the local economic and health impacts of natural resource extraction on communities and the effectiveness of large energy subsidies using microdata from Mongolia for 2008-2018. The results are presented in three stand-alone empirical chapters.
Chapter 2 examines the economic impacts of the mining industry's indirect linkages on household expenditure patterns in a quasi-experiment setting. Households benefit from mining activities by increasing their expenditures on food, health care, and electricity by reducing their expenditures on education, non-food goods, and services. However, increased mining activities do not adversely affect health and educational outcomes because of improved access to health and education services.
Chapter 3 investigates the impact of mining-induced pollution on individuals' likelihood of reporting illnesses, employing a novel instrumental variable. Individuals who reside within five kilometers of mining activities are more likely to report illness. This is true for all age groups, although the effect is most severe for younger children. Small-scale mines and gold mines cause greater health risks than larger and other types of mines.
Chapter 4 evaluates the effectiveness of large electricity subsidies in reducing fossil fuel use, such as coal, and improving ambient air quality. The subsidy program achieves its intended goal of reducing illness, but it affects household electricity consumption behavior, which might further help the transition from coal to electricity and reduce air pollution.
The results reported in this thesis generate findings important for policymaking in resource-rich developing countries. First, household disaggregated expenditure analysis can provide useful information about household consumption decisions, which can be used for policy formulation to increase the benefits of mining activities to local communities. Second, pollution control and mitigation are essential in resource-producing regions to reduce the population's health risks from mining activities and enhance welfare. Third, large energy subsidies may be useful for changing consumer behavior, further contributing to subsidy effectiveness.
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Keywords
Mineral industries, Economic aspects, Health aspects, Mongolia, Energy policies, Subsidies