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Unintended consequences of sanitation investment: Negative externalities on water quality and health in India

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  • Motohashi, Kazuki

Abstract

Developing countries have increased sanitation investment to improve child health. However, scaling up latrine construction can cause water pollution externalities owing to insufficient infrastructure for the treatment of fecal sludge, offsetting the direct health benefits. I estimate the negative externalities of an Indian sanitation policy that subsidized the construction of over 100 million latrines. Exploiting geographical variations in soil characteristics that affect the feasibility of latrine construction, I find that this policy increases fecal contamination of rivers by 72%. Although the policy reduces diarrheal child mortality overall, this positive health effect is eliminated when upstream areas lack adequate wastewater infrastructure.

Suggested Citation

  • Motohashi, Kazuki, 2026. "Unintended consequences of sanitation investment: Negative externalities on water quality and health in India," Journal of Development Economics, Elsevier, vol. 182(C).
    • Handle: RePEc:eee:deveco:v:182:y:2026:i:c:s0304387826000763
    DOI: 10.1016/j.jdeveco.2026.103793
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    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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