Health benefits of air pollution reduction: Evidence from economic slowdown in India

This paper evaluates health benefits associated with the impact of air pollution reduction on infant mortality in India. Leveraging plausibly exogenous geographic variation in air pollution due to the post-2010 economic slowdown—a period largely overlooked in the literature—I find that improvements in air quality resulted in a significant decline in infant mortality, particularly through respiratory diseases and biological pathways such as in utero and post-birth exposure. The associated health benefits correspond to 1338 saved infant lives, translating to monetary gains of $312.5 million. The paper advances our understanding of the link between air pollution and human health in settings with elevated air pollution and suboptimal regulatory frameworks. •Evaluates health benefits associated with the impact of air pollution reduction on infant mortality in India.•Uses post-2010 economic slowdown as a natural experiment, combining satellite air pollution data and survey demographic data.•Shows a significant decrease in infant mortality rates resulting from air pollution reduction associated with the slowdown.•Effects are transmitted primarily through respiratory diseases and in utero/post-birth exposure to air pollution.•Demonstrates that reducing air pollution yields substantial health benefits, emphasizing the need for strong regulations.