Going Beneath the Surface: Petroleum Pollution, Regulation, and Health

Abstract

This paper quantifies the health impacts of petroleum leaks from underground storage tanks, the effectiveness of tank regulation, and the role of information as a policy tool in the same setting. Exposure to a leaking underground storage tank during gestation increases both the probability of low birthweight and preterm birth by 7–8 percent. Compliance with regulations requiring the adoption of preventative technologies mitigated the entire effect of leak exposure on low birthweight, and information increased avoidance and moving among highly educated mothers. Back-of-the-envelope calculations suggest the health benefits of preventative regulations exceed the upgrade cost to facilities. (JEL I12, K32, L71, L78, Q35, Q51, Q53)