Ex-post evaluation and cost-benefit analysis of a heater replacement program implemented in southern Chile

Cristian Mardones

Energy, 2021, vol. 227, issue C

Abstract: There are high particulate matter concentrations associated with the massive consumption of firewood for residential heating in the south-central zone of Chile. Therefore, the Ministry of the Environment has implemented heater replacement programs in various cities to address this problem and reduce pollution. In this context, this study performs the ex-post evaluation of a heater replacement program, which subsidizes the installation of certified wood-burning heaters, pellet heaters, and kerosene vented heaters. Thus, the study aims to determine each alternative’s real contribution with the differences-in-differences method and calculate its cost-effectiveness and cost-benefit indicators. The data comes from a unique survey carried out in the city of Temuco, which provides information on firewood consumption and other control variables in beneficiary and non-beneficiary households from this program in the year before and after its implementation. The results show that the replacement with pellet and kerosene vented heaters significantly reduces firewood consumption and outdoor emissions of particulate matter. In contrast, the replacement with certified wood-burning heaters does not generate significant changes in firewood consumption, energy consumption, or outdoor emissions. Finally, the cost-effectiveness and cost-benefit indicators are obtained for each alternative.

Keywords: Differences-in-differences; Firewood; Pellet; Kerosene; Panel data; Air pollution (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:227:y:2021:i:c:s0360544221007337

DOI: 10.1016/j.energy.2021.120484

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