Energy Production and Health Externalities

Emmanuelle Lavaine () and Matthew Neidell
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Emmanuelle Lavaine: PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement

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Abstract: This paper examines the effect of energy production on newborn health using a recent strike that affectedoil refineries in France as a natural experiment. First, we show that the temporary reduction in refininglead to a significant reduction in sulfur dioxide (SO2) concentrations. Second, this shock significantlyincreased birth weight and gestational age of newborns, particularly for those exposed to the strikeduring the third trimester of pregnancy. Back-of-the-envelope calculations suggest that a 1 unit declinein SO2 leads to a 196 million euro increase in lifetime earnings per birth cohort. This externality fromoil refineries should be an important part of policy discussions surrounding the production of energy.

Date: 2013-04-01
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