Giant Oil Discoveries and Long-Term Health Effects: Evidence from China

Does the discovery and operation of a nearby giant oil field carry long-term health consequences? Capitalizing on the 2011-2018 waves of the China Health and Retirement Longitudinal Study, we find that a giant oil discovery occurring within a 60 -km radius significantly decreases the relative average long-term health conditions of individuals born after it. Specifically, the average share of individuals diagnosed with a chronic disease in these areas increases, in relative terms, by 22%. This effect is observed most notably in diseases related to the respiratory, digestive, and urinary systems and may be driven by changes in the consumption habits of alcohol and tobacco.