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Spillover health effects of energy efficiency investments: Quasi-experimental evidence from the Los Angeles LED streetlight program

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  • Jones, Benjamin A.

Abstract

Payback estimates of energy efficiency investments often ignore public health externalities. This is problematic in cases where spillover health effects are substantial, such as when the application of new technology alters environmental exposures. When health externalities are included in return on investment calculations, energy efficiency programs may look more or less attractive than suggested by conventional “energy savings only” estimates. This analysis exploits the quasi-experiment provided by the 2009 Los Angeles (LA) LED streetlight efficiency program to investigate the returns on investments inclusive of an originally estimated health externality. Using the synthetic control method, we find that the LED streetlight program is associated with a lagged increase in breast cancer mortality of 0.479 per 100,000. Inclusive of the effects of LEDs on breast cancer and avoided carbon emissions, the LA LED program provides a −146.2% 10-year return compared to +118.2% when health outcomes and carbon emissions are ignored.

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  • Jones, Benjamin A., 2018. "Spillover health effects of energy efficiency investments: Quasi-experimental evidence from the Los Angeles LED streetlight program," Journal of Environmental Economics and Management, Elsevier, vol. 88(C), pages 283-299.
    • Handle: RePEc:eee:jeeman:v:88:y:2018:i:c:p:283-299
    DOI: 10.1016/j.jeem.2018.01.002
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    Cited by:

    1. David Molitor & Corey White, 2023. "Do Cities Mitigate or Exacerbate Environmental Damages to Health?," Monash Economics Working Papers 2023-25, Monash University, Department of Economics.
    2. Jones, Benjamin A., 2019. "Infant health impacts of freshwater algal blooms: Evidence from an invasive species natural experiment," Journal of Environmental Economics and Management, Elsevier, vol. 96(C), pages 36-59.
    3. Liwei Tang & Ke Li & Pinrong Jia, 2020. "Impact of Environmental Regulations on Environmental Quality and Public Health in China: Empirical Analysis with Panel Data Approach," Sustainability, MDPI, vol. 12(2), pages 1-15, January.
    4. Laura M. Argys & Susan L. Averett & Muzhe Yang, 2021. "Light pollution, sleep deprivation, and infant health at birth," Southern Economic Journal, John Wiley & Sons, vol. 87(3), pages 849-888, January.
    5. Min Li & Kaisheng Long, 2019. "Direct or Spillover Effect: The Impact of Pure Technical and Scale Efficiencies of Water Use on Water Scarcity in China," IJERPH, MDPI, vol. 16(18), pages 1-13, September.
    6. Boslett, Andrew & Hill, Elaine & Ma, Lala & Zhang, Lujia, 2021. "Rural light pollution from shale gas development and associated sleep and subjective well-being," Resource and Energy Economics, Elsevier, vol. 64(C).
    7. Jones, Benjamin A. & Goodkind, Andrew L., 2019. "Urban afforestation and infant health: Evidence from MillionTreesNYC," Journal of Environmental Economics and Management, Elsevier, vol. 95(C), pages 26-44.
    8. Argys, Laura M. & Averett, Susan L. & Yang, Muzhe, 2018. "Light Pollution, Sleep Deprivation, and Infant Health at Birth," IZA Discussion Papers 11703, Institute of Labor Economics (IZA).
    9. Jones, Benjamin A., 2018. "Forest-attacking Invasive Species and Infant Health: Evidence From the Invasive Emerald Ash Borer," Ecological Economics, Elsevier, vol. 154(C), pages 282-293.

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    More about this item

    Keywords

    Energy efficiency investments; Health externalities; LED streetlights; CO2 emissions; Los Angeles; Synthetic control method;
    All these keywords.

    JEL classification:

    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

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