The Impact of Air Pollution on Infant Mortality: Evidence from Geographic Variation in Pollution Shocks Induced by a Recession Kenneth Chay and Michael Greenstone ABSTRACT Previous research has documented a statistical association between differential pollution levels across sites and variation in adult health outcomes. However, a heated debate has arisen about whether these documented associations are causal. At issue is the possibility that since air pollution, and pollution changes, are not randomly assigned across localities, previous studies may not be adequately controlling for a number of potential confounding determinants of mortality. In this study, we use sharp, differential air quality changes across sites attributable to geographic variation in the effects of the 1981-82 recession to estimate the relationship between infant mortality and suspended particulates air pollution. It is shown that in the narrow period of 1980-82, there was substantial variation across counties in changes in particulates pollution, and that these differential pollution reductions appear to be orthogonal to changes in other factors which may be correlated with infant mortality. Thus, this research design may provide a more credible basis for evaluating the pollution-infant mortality relationship than those previously used. The analysis is based on the most detailed and comprehensive data available on air pollution, infant births and deaths, and other potential determinants of infant health outcomes. We find a significant impact of pollution reductions on decreases in infant mortality rates at the county level, with a 1 mg/m3 particulate matter reduction resulting in about 4-8 less infant deaths per 100,000 births (a 0.3-0.5 elasticity). The estimates are driven mostly by deaths that occur within one month of birth and are very stable across a variety of specifications. The results also reveal a nonlinear relationship between pollution and infant mortality. Both of these relations are masked in "conventional" analyses based on less credible research designs than the approach used here (e.g., cross-sectional and "fixed effects" analyses).