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Health externalities of India's expansion of coal plants: Evidence from a national panel of 40,000 households

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  • Gupta, Aashish
  • Spears, Dean

Abstract

Coal power generation is expanding rapidly in India and other developing countries. In addition to consequences for climate change, present-day health externalities may also substantially increase the social cost of coal. Health consequences of air pollution have proven important in studies of developed countries, but, despite clear importance, similarly well-identified estimates are less available for developing countries, and no estimates exist for the important case of coal in India. We exploit panel data on Indian households, matched to local changes in exposure to coal plants. Increased exposure to coal plants is associated with worse respiratory health. Consistent with a causal mechanism, the effect is specific: no effect is seen on diarrhea or fever, and no effect on respiratory health is seen of new non-coal plants. Our result is not due to endogenous avoidance behavior, or to differential trends in determinants of respiratory health, either before the period studied or simultaneously.

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  • Gupta, Aashish & Spears, Dean, 2017. "Health externalities of India's expansion of coal plants: Evidence from a national panel of 40,000 households," Journal of Environmental Economics and Management, Elsevier, vol. 86(C), pages 262-276.
    • Handle: RePEc:eee:jeeman:v:86:y:2017:i:c:p:262-276
    DOI: 10.1016/j.jeem.2017.04.007
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    2. Balakrishnan, Uttara & Tsaneva, Magda, 2021. "Air pollution and academic performance: Evidence from India," World Development, Elsevier, vol. 146(C).
    3. Jack, B. Kelsey, 2017. "Environmental economics in developing countries: An introduction to the special issue," Journal of Environmental Economics and Management, Elsevier, vol. 86(C), pages 1-7.
    4. Brooks, Nina & Biswas, Debashish & Hossin, Raduan & Yu, Alexander & Saha, Shampa & Saha, Senjuti & Saha, Samir K. & Luby, Stephen P., 2023. "Health consequences of small-scale industrial pollution: Evidence from the brick sector in Bangladesh," World Development, Elsevier, vol. 170(C).
    5. Gupta, Aashish, 2019. "Where there is smoke: Solid fuel externalities, gender, and adult respiratory health in India," SocArXiv 45fn6, Center for Open Science.
    6. Matthew E. Kahn & Nancy Lozano‐Gracia & Maria Edisa Soppelsa, 2021. "Pollution'S Role In Reducing Urban Quality Of Life In The Developing World," Journal of Economic Surveys, Wiley Blackwell, vol. 35(1), pages 330-347, February.
    7. Montrone, Lorenzo & Steckel, Jan Christoph & Kalkuhl, Matthias, 2022. "The type of power capacity matters for economic development – Evidence from a global panel," Resource and Energy Economics, Elsevier, vol. 69(C).

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