Vog: Using Volcanic Eruptions to Estimate the Health Costs of Particulates and SO2

Timothy Halliday, John Lynham and Aureo de Paula

No 201504, Working Papers from University of Hawaii at Manoa, Department of Economics

Abstract: Kilauea volcano is the largest stationary source of SO2 pollution in the United States of America. Moreover, the SO2 that the volcano emits eventually forms particulate matter, another major pollutant. We use this exogenous SO2 on emergency room admissions and costs in the state of Hawaii. Importantly, our data on costs is more accurate than the measures used in much of the literature. We find strong evidence that particulate pollution increases pulmonary-related hospitalization. Specifically, a one standard deviation increase in particulate pollution leads to a 2-3% increase in expenditures on emergency room visits for pulmonary-related outcomes. However, we do not find strong effects for pure SO2 pollution or for cardiovascular outcomes. We also find no effect of volcanic pollution on fractures, our placebo outcome. Finally, the effects of particulate pollution on pulmonary-related admissions are most concentrated among the very young. Our estimates suggest that, since the large increase in emissions that began in 2008, the volcano has increased healthcare costs in Hawaii by approximately $6,277,204.

Keywords: Pollution; Health; Volcano; Particulates; SO2 (search for similar items in EconPapers)
JEL-codes: H51 I12 Q51 Q53 (search for similar items in EconPapers)
Date: 2015-04
New Economics Papers: this item is included in nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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http://www.economics.hawaii.edu/research/workingpapers/WP_15-4.pdf First version, 2015 (application/pdf)

Related works:
Working Paper: Vog: Using Volcanic Eruptions to Estimate the Health Costs of Particulates and SO2 (2015)
Working Paper: Vog: Using Volcanic Eruptions to Estimate the Health Costs of Particulates and SO2 (2015)
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