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Ruhr Economic Papers #936

2022

Sreeja Jaiswal, Gunther Bensch, Aniket Navalkar, T. Jayaraman

The Socio-Economic and Environmental Impact of a Large Infrastructure Project: The Case of the Konkan Railway in India

Railways are a key infrastructure that facilitates trade and regional integration with potential consequences on local development and the environment in hitherto backward regions. In this article, we study the medium- to long-term socio-economic and environmental infrastructure impacts for the case of the Konkan Railway, which is one of the biggest railway construction endeavours in independent India. We employ a quasi-experimental mixed-methods design to explore the impact of the Konkan Railway on population, workforce composition and land cover types using census and satellite data. We find that the Konkan Railway led to an increase in the female-to-male sex ratio and a negative effect on the share of male workers among the working population. In combination with qualitative evidence, this suggests that the railway access has reinforced the pre-existing pattern of high levels of male migration. We also find an increase in population and the workforce participation rate without disparate workforce effects across sectors suggesting that the railway had moderate effects across the local economies. In terms of land use, the analysis could not substantiate concerns regarding substantive loss of forest cover induced by the railways. The findings encourage policy makers – in assessing the effects of transport infrastructure – to take into consideration the impact on migration, labour mobility and labour market outcomes in sending and receiving regions.

ISBN: 978-3-96973-096-6

JEL-Klassifikation: N75, O18, O40, R11

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