Toxic pollution and poverty: Economic impacts of lead (Pb) exposure on household welfare in Zambia

Environmental degradation due to human economic activities is closely linked to poverty in developing countries and can have long-term effects on well-being and sustainable development. This study investigates the nexus between toxic pollution and poverty by examining the economic impacts of lead (Pb) exposure on household welfare in Kabwe, Zambia. Kabwe, once a lead and zinc mining center, is now one of the world's most polluted urban areas, with high soil and air lead levels posing substantial health risks. We conducted a household survey and collected blood samples, matching socioeconomic data with blood lead levels (BLLs). Our empirical strategy uses variations in soil lead concentration across Kabwe neighborhoods to assess the causal impact of lead exposure on household welfare dimensions, such as consumption, education, health, and labor supply. Results show that a 1% increase in adult BLLs reduces per capita household consumption by 0.1–0.2% and increases the probability of being below the poverty line. Additionally, BLLs negatively affect adult health and children's schooling, while healthcare costs and labor supply remain unaffected. These findings suggest that lead exposure exacerbates poverty, hinders human capital accumulation, and has long-lasting implications for sustainable development.