Global Gains From a Green Energy Transition: Evidence on Coal-Fired Power and Air Quality Dissatisfaction

Timothy Besley and Azhar Hussain

No 18046, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Phasing out coal-fired power in favor of renewables is now a central plank of climate action. But, in contrast to many other policy actions, coal-fired power should have an immediate and perceptible benefit through improved air quality. If this is true, there is potential to harness local politics in combating a global problem. However, this line of argument is only valid if coal-fired power does indeed lead to greater air quality dissatisfaction. This paper provides such evidence using geocoded survey data from 51 countries by demonstrating that people living within 40 km of coal-fired power stations are, on average, more dissatisfied with the ambient air quality. We then construct a willingness-to-pay measure to show that there are net benefits from replacing coal-fired power generation capacity with green technologies globally, solely based on air quality improvements.

Date: 2023-03
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