Template-Type: ReDIF-Paper 1.0 Author-Name: Digvijay S. Negi Author-Name-First: Digvijay S. Author-Name-Last: Negi Author-Email: digvijay.negi@ashoka.edu.in Author-Workplace-Name: Ashoka University Title: State Mediated Trade, Distortions and Air Pollution Abstract: Can government imposed market integration and resultant specialization contribute to a large-scale negative environmental externality? I compare agricultural fire activity and air pollution levels in districts where the government interferes in the local grain markets with districts without such interference to establish a robust link between food prices and air pollution in India. This link comes about due to higher prices leading to increased agricultural fire activity in districts where the government procures food grains from the local markets. Estimates suggest a 21 percent increase in morbidity and a 19 percent increase in out of pocket medical expenditure associated with procurement led air pollution. The mortality cost of resultant pollution is USD 1 billion larger than gains to producers from higher prices. length: 51 Creation-Date: 20241021 Revision-Date: Publication-Status: File-URL:/www/wwwashokaeduin_628/public/dp/RePEc/ash/wpaper/paper129_0.pdf File-Format: Application/pdf Number: 129 Keywords: Air Pollution Keywords: distortion Keywords: fires Keywords: India Keywords: price floor Handle: RePEc:ash:wpaper:129