IDEAS home Printed from https://ideas.repec.org/p/pri/cepsud/305.html
   My bibliography  Save this paper

The Mortality Effects of Winter Heating Prices

Author

Listed:
  • Janjala Chirakijja

    (Monash University)

  • Seema Jayachandran

    (Princeton University and NBER)

  • Pinchuan Ong

    (National University of Singapore Business School)

Abstract

This paper examines how the price of home heating affects mortality in the US. Exposure to cold is one reason that mortality peaks in winter, and a higher heating price increases exposure to cold by reducing heating use. Our empirical approach combines spatial variation in the energy source used for home heating and temporal variation in the national prices of natural gas and electricity. We find that a lower heating price reduces winter mortality, driven mostly by cardiovascular and respiratory causes. Our estimates imply that the 42% drop in the natural gas price in the late 2000s, mostly driven by the shale gas boom, averted 12,500 deaths per year in the US. The effect appears to be especially large in high-poverty communities.

Suggested Citation

  • Janjala Chirakijja & Seema Jayachandran & Pinchuan Ong, 2023. "The Mortality Effects of Winter Heating Prices," Working Papers 305, Princeton University, Department of Economics, Center for Economic Policy Studies..
  • Handle: RePEc:pri:cepsud:305
    as

    Download full text from publisher

    File URL: https://gceps.princeton.edu/wp-content/uploads/2023/03/wp305_Jayachandran-et-al_heating_mortality_23jan.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Thomas J. Kniesner, 2019. "Behavioral economics and the value of a statistical life," Journal of Risk and Uncertainty, Springer, vol. 58(2), pages 207-217, June.
    2. Olivier Deschênes & Michael Greenstone, 2011. "Climate Change, Mortality, and Adaptation: Evidence from Annual Fluctuations in Weather in the US," American Economic Journal: Applied Economics, American Economic Association, vol. 3(4), pages 152-185, October.
    3. Lucija Muehlenbachs & Elisheba Spiller & Christopher Timmins, 2015. "The Housing Market Impacts of Shale Gas Development," American Economic Review, American Economic Association, vol. 105(12), pages 3633-3659, December.
    4. Hannes Schwandt & Janet Currie & Marlies Bär & James Banks & Paola Bertoli & Aline Bütikofer & Sarah Cattan & Beatrice Zong-Ying Chao & Claudia Costa & Libertad González & Veronica Grembi & Kristiina , 2021. "Inequality in mortality between Black and White Americans by age, place, and cause and in comparison to Europe, 1990 to 2018," Proceedings of the National Academy of Sciences, Proceedings of the National Academy of Sciences, vol. 118(40), pages 2104684118-, October.
    5. Ann H. Stevens & Douglas L. Miller & Marianne E. Page & Mateusz Filipski, 2015. "The Best of Times, the Worst of Times: Understanding Pro-cyclical Mortality," American Economic Journal: Economic Policy, American Economic Association, vol. 7(4), pages 279-311, November.
    6. Bhattacharya, J. & DeLeire, T. & Haider, S. & Currie, J., 2003. "Heat or Eat? Cold-Weather Shocks and Nutrition in Poor American Families," American Journal of Public Health, American Public Health Association, vol. 93(7), pages 1149-1154.
    7. Peter R. Hartley & Kenneth B Medlock III & Jennifer E. Rosthal, 2008. "The Relationship of Natural Gas to Oil Prices," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 47-66.
    8. Robert W. Hahn & Robert D. Metcalfe, 2021. "Efficiency and Equity Impacts of Energy Subsidies," American Economic Review, American Economic Association, vol. 111(5), pages 1658-1688, May.
    9. Lucas W. Davis & Lutz Kilian, 2011. "The Allocative Cost of Price Ceilings in the U.S. Residential Market for Natural Gas," Journal of Political Economy, University of Chicago Press, vol. 119(2), pages 212-241.
    10. Olivier Deschênes & Enrico Moretti, 2009. "Extreme Weather Events, Mortality, and Migration," The Review of Economics and Statistics, MIT Press, vol. 91(4), pages 659-681, November.
    11. Alan Barreca & Karen Clay & Olivier Deschenes & Michael Greenstone & Joseph S. Shapiro, 2016. "Adapting to Climate Change: The Remarkable Decline in the US Temperature-Mortality Relationship over the Twentieth Century," Journal of Political Economy, University of Chicago Press, vol. 124(1), pages 105-159.
    12. Alexandre Belloni & Victor Chernozhukov & Christian Hansen, 2014. "Inference on Treatment Effects after Selection among High-Dimensional Controlsâ€," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 81(2), pages 608-650.
    13. Hill, Elaine L., 2018. "Shale gas development and infant health: Evidence from Pennsylvania," Journal of Health Economics, Elsevier, vol. 61(C), pages 134-150.
    14. Hilary Hoynes & Douglas L. Miller & Jessamyn Schaller, 2012. "Who Suffers during Recessions?," Journal of Economic Perspectives, American Economic Association, vol. 26(3), pages 27-48, Summer.
    15. Neidell, Matthew & Uchida, Shinsuke & Veronesi, Marcella, 2021. "The unintended effects from halting nuclear power production: Evidence from Fukushima Daiichi accident," Journal of Health Economics, Elsevier, vol. 79(C).
    16. Alexander W. Bartik & Janet Currie & Michael Greenstone & Christopher R. Knittel, 2019. "The Local Economic and Welfare Consequences of Hydraulic Fracturing," American Economic Journal: Applied Economics, American Economic Association, vol. 11(4), pages 105-155, October.
    17. Liddell, Christine & Morris, Chris, 2010. "Fuel poverty and human health: A review of recent evidence," Energy Policy, Elsevier, vol. 38(6), pages 2987-2997, June.
    18. Thomas F. Crossley & Federico Zilio, 2018. "The health benefits of a targeted cash transfer: The UK Winter Fuel Payment," Health Economics, John Wiley & Sons, Ltd., vol. 27(9), pages 1354-1365, September.
    19. Erica Myers, 2019. "Are Home Buyers Inattentive? Evidence from Capitalization of Energy Costs," American Economic Journal: Economic Policy, American Economic Association, vol. 11(2), pages 165-188, May.
    20. Paul Goldsmith-Pinkham & Isaac Sorkin & Henry Swift, 2020. "Bartik Instruments: What, When, Why, and How," American Economic Review, American Economic Association, vol. 110(8), pages 2586-2624, August.
    21. Linn, Joshua & Muehlenbachs, Lucija, 2018. "The heterogeneous impacts of low natural gas prices on consumers and the environment," Journal of Environmental Economics and Management, Elsevier, vol. 89(C), pages 1-28.
    22. Holladay, J. Scott & LaRiviere, Jacob, 2017. "The impact of cheap natural gas on marginal emissions from electricity generation and implications for energy policy," Journal of Environmental Economics and Management, Elsevier, vol. 85(C), pages 205-227.
    23. Maximilian Auffhammer & Edward Rubin, 2018. "Natural Gas Price Elasticities and Optimal Cost Recovery Under Consumer Heterogeneity: Evidence from 300 million natural gas bills," NBER Working Papers 24295, National Bureau of Economic Research, Inc.
    24. Joseph A. Cullen & Erin T. Mansur, 2017. "Inferring Carbon Abatement Costs in Electricity Markets: A Revealed Preference Approach Using the Shale Revolution," American Economic Journal: Economic Policy, American Economic Association, vol. 9(3), pages 106-133, August.
    25. Christopher R. Knittel & Konstantinos Metaxoglou & Andre Trindade, 2015. "Natural Gas Prices and Coal Displacement: Evidence from Electricity Markets," NBER Working Papers 21627, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Janjala Chirakijja & Seema Jayachandran & Pinchuan Ong, 2019. "Inexpensive Heating Reduces Winter Mortality," NBER Working Papers 25681, National Bureau of Economic Research, Inc.
    2. Neidell, Matthew & Uchida, Shinsuke & Veronesi, Marcella, 2019. "Be Cautious with the Precautionary Principle: Evidence from Fukushima Daiichi Nuclear Accident," IZA Discussion Papers 12687, Institute of Labor Economics (IZA).
    3. Neidell, Matthew & Uchida, Shinsuke & Veronesi, Marcella, 2021. "The unintended effects from halting nuclear power production: Evidence from Fukushima Daiichi accident," Journal of Health Economics, Elsevier, vol. 79(C).
    4. LaPlue, Lawrence D., 2022. "Environmental consequences of natural gas wellhead pricing deregulation," Journal of Environmental Economics and Management, Elsevier, vol. 116(C).
    5. Linn, Joshua & Muehlenbachs, Lucija, 2018. "The heterogeneous impacts of low natural gas prices on consumers and the environment," Journal of Environmental Economics and Management, Elsevier, vol. 89(C), pages 1-28.
    6. Sam Cosaert & Adrián Nieto & Konstantinos Tatsiramos, 2023. "Temperature and Joint Time Use," CESifo Working Paper Series 10464, CESifo.
    7. Doremus, Jacqueline M. & Jacqz, Irene & Johnston, Sarah, 2022. "Sweating the energy bill: Extreme weather, poor households, and the energy spending gap," Journal of Environmental Economics and Management, Elsevier, vol. 112(C).
    8. Nathaly M Rivera & Cristobal Ruiz Tagle, Elisheba Spiller, 2021. "The Health Benefits of Solar Power Generation: Evidence from Chile," Working Papers, Department of Economics 2021_04, University of São Paulo (FEA-USP).
    9. Harding, Matthew & Kettler, Kyle & Lamarche, Carlos & Ma, Lala, 2023. "The (alleged) environmental and social benefits of dynamic pricing," Journal of Economic Behavior & Organization, Elsevier, vol. 205(C), pages 574-593.
    10. Lusher, Lester & Ruberg, Tim, 2023. "Killer Alerts? Public Health Warnings and Heat Stroke in Japan," IZA Discussion Papers 16562, Institute of Labor Economics (IZA).
    11. Gazze, Ludovica, 2021. "The price and allocation effects of targeted mandates: Evidence from lead hazards," Journal of Urban Economics, Elsevier, vol. 123(C).
    12. Brehm, Paul, 2019. "Natural gas prices, electric generation investment, and greenhouse gas emissions," Resource and Energy Economics, Elsevier, vol. 58(C).
    13. Melissa Dell & Benjamin F. Jones & Benjamin A. Olken, 2014. "What Do We Learn from the Weather? The New Climate-Economy Literature," Journal of Economic Literature, American Economic Association, vol. 52(3), pages 740-798, September.
    14. Doyle, Matthew & Fell, Harrison, 2018. "Fuel prices, restructuring, and natural gas plant operations," Resource and Energy Economics, Elsevier, vol. 52(C), pages 153-172.
    15. Xi Chen & Chih Ming Tan & Xiaobo Zhang & Xin Zhang, 2020. "The effects of prenatal exposure to temperature extremes on birth outcomes: the case of China," Journal of Population Economics, Springer;European Society for Population Economics, vol. 33(4), pages 1263-1302, October.
    16. Backstrom, Jesse, 2019. "Strategic Reporting and the Effects of Water Use in Hydraulic Fracturing on Local Groundwater Levels in Texas," Center for Growth and Opportunity at Utah State University 307177, Center for Growth and Opportunity.
    17. Fritz, Manuela, 2021. "Temperature and non-communicable diseases: Evidence from Indonesia's primary health care system," Passauer Diskussionspapiere, Volkswirtschaftliche Reihe V-84-21, University of Passau, Faculty of Business and Economics.
    18. Jonathan T. Hawkins-Pierot & Katherine R. H. Wagner, 2022. "Technology Lock-In and Optimal Carbon Pricing," CESifo Working Paper Series 9762, CESifo.
    19. Otrachshenko, Vladimir & Popova, Olga & Solomin, Pavel, 2017. "Health Consequences of the Russian Weather," Ecological Economics, Elsevier, vol. 132(C), pages 290-306.
    20. Apergis, Nicholas & Mustafa, Ghulam & Dastidar, Sayantan Ghosh, 2021. "An analysis of the impact of unconventional oil and gas activities on public health: New evidence across Oklahoma counties," Energy Economics, Elsevier, vol. 97(C).

    More about this item

    Keywords

    Mortality; Home Heating; Heating Prices;
    All these keywords.

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I39 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Other
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pri:cepsud:305. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Bobray Bordelon (email available below). General contact details of provider: https://edirc.repec.org/data/ceprius.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.