Does mining activity affects economic welfare in mining and neighboring districts? Evidence from Peru, 2003–2019

Sánchez-Dávila E.; Riquelme A. · Mineral Economics (2026) · DOI: 10.1007/s13563-026-00619-w

Resumen

The aim of this document is to estimate the local impact that mining activity has had on local socioeconomic welfare. First, the paper defines 'local impact' as that which occurs in mining districts and neighboring districts. Then, 'mining activity' is considered to encompass: i) the presence of mining; and ii) the intensity of mining. Third, 'socioeconomic welfare' is defined as: i) economic development, measured by the Human Development Index (HDI), ii) economic performance, measured by the average monthly income (INC); and iii) social performance, measured by years of education (EDU) and life expectancy at birth (LIF). Therefore, this paper empirically examines the effect of mining activity on socioeconomic welfare for the period from 2003 to 2019. To do so, we use a panel event-study to estimate the time-varying effects of mining activity on local welfare outcomes. The results show positive and statistically significant effects on HDI, income, and education, but no effect on life expectancy. These effects are confined to mining districts, with no evidence of spillovers to neighboring areas, and are driven exclusively by high-intensity mining activity. © The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature 2026.

Instituciones: Universidad de Lima