The relationship between oil production and infant health outcomes: Evidence from fracking boom

This paper examines the effects of oil and gas production on infant health using birth records from 1990 to 2020. We focus on the rise of unconventional extraction methods-particularly hydraulic fracturing ("fracking")-as a quasi-exogenous shock to local production. Exploiting the staggered discovery of fracking potential across shale counties, coupled with measures of production potential as identifying variation, we implement a difference-in-differences design to estimate the impact of drilling exposure on birth outcomes. We find that exposure to drilling activity significantly reduces birth weight, increases the incidence of low birth weight and preterm birth, and impairs fetal growth. Linking drilling to changes in local ambient pollution, we show that exposure significantly increases concentrations of ozone, PM_2.5, PM₁₀, and SO₂-pollutants known to affect fetal development. These environmental changes likely contribute to the observed negative effects on infant health. Our findings offer insights into the broader costs and benefits of oil and gas extraction for local communities.