Environmental and socio‐economic effects of industrial gold mining: Evidence from household data in Burkina Faso

Abstract

AbstractThe growing of mining sector is generally accompanied by socio‐economic and environmental consequences. Most previous work has either analyzed economic, social, or environmental effects without considering all three dimensions of sustainable development at once. Similarly, the perceptions of the populations living near mining companies are not widely considered in these studies. The objective of this paper is to analyze the populations' perception of the effects of industrial gold mining on environment (noise, air pollution, and land degradation), social (prostitution, banditry, and alcoholism), and household income in Burkina Faso. A probit model is used on a sample of 251 households living near four industrial mining sites. The results show that mining activity has contributed to improve the per capita income of the households surrounding certain industrial mining sites. However, it has contributed to a decline in the quality of life of the households due to noise and air pollution and social problems such as banditry. The government must protect mining areas from banditry and support households with local economic infrastructure to avoid a drop in their income after the mines close.