The health costs of dirty energy: Evidence from the capacity market in Colombia

Achyuta Adhvaryu, Teresa Molina, Anant Nyshadham, Jorge Tamayo and Nicolas Torres

Journal of Development Economics, 2023, vol. 164, issue C

Abstract: The health effects of “dirty” (fossil fuel driven) energy production are difficult to measure accurately due to the endogeneity of fuel choice. We exploit an electricity policy in Colombia that generates a price-based trigger for the use of thermal energy sources. Comparing municipalities near high versus low capacity plants, we first document that the activation of this trigger – which increased thermal energy production – led to significantly higher local pollution levels. This change increased cardiovascular-related ER mortality by 56% and respiratory-related morbidity by 9%. Our results translate to a cost of 996 million USD in terms of lives lost and higher healthcare costs.

Keywords: Electricity generation; Pollution; Health; Colombia (search for similar items in EconPapers)
JEL-codes: I18 O13 Q53 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:deveco:v:164:y:2023:i:c:s0304387823000718

DOI: 10.1016/j.jdeveco.2023.103116

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