Beyond the Tap: The Environmental Payoffs of Expanding Water and Sanitation Access in Latin America

This research examines the influence of access to clean water and sanitation in Latin America from 2000 to 2024 on PM2.5 air pollution. The study employs quantile regression and robust panel estimation methods (PCSE, DKSE, and FGLS) to analyze the impact of infrastructure inclusivity on air pollution, while controlling for income, industrial structure, renewable electricity output, energy productivity, and CO2 emissions. Results demonstrate that improved access to basic water services (LBWS) and sanitation services (LBSS) consistently and significantly reduces PM2.5 concentrations, hence confirming their efficacy in mitigating air pollution. An inverted U relationship exists between economic growth, industrialization, and pollution, alongside the impact of renewable electricity output on pollution reduction and rebound effects in less efficient economies through energy productivity. The Dumitrescu-Hurlin tests of causation illustrate a bidirectional relationship between infrastructure and air quality, indicating that they mutually reinforce one another. This study affirms that water and sanitation are not merely social necessities, but essential instruments of environmental governance crucial for fostering egalitarian, low-carbon, and sustainable development across Latin America.