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When Externalities Collide: Influenza and Pollution

Author

Listed:
  • Joshua Graff Zivin
  • Matthew Neidell
  • Nicholas J. Sanders
  • Gregor Singer

Abstract

Influenza and air pollution each pose significant health risks with global economic consequences. Their shared etiological pathways present a case of compounding health risk via interacting externalities. Using instrumental variables based on changing wind direction, we show that increased levels of contemporaneous pollution increase influenza hospitalizations. We exploit random variation in effectiveness of the influenza vaccine as an additional instrument to show that vaccine protection neutralizes this relationship. Thus, pollution control and vaccination campaigns jointly provide greater returns than those implied by addressing either in isolation. We show the importance of this consideration in addressing observed gaps in influenza incidence by race.

Suggested Citation

  • Joshua Graff Zivin & Matthew Neidell & Nicholas J. Sanders & Gregor Singer, 2023. "When Externalities Collide: Influenza and Pollution," American Economic Journal: Applied Economics, American Economic Association, vol. 15(2), pages 320-351, April.
    • Handle: RePEc:aea:aejapp:v:15:y:2023:i:2:p:320-51
    DOI: 10.1257/app.20210500
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    Cited by:

    1. Laure de Preux & Dheeya Rizmie & Daniela Fecht & John Gulliver & Weiyi Wang, 2023. "Does It Measure Up? A Comparison of Pollution Exposure Assessment Techniques Applied across Hospitals in England," IJERPH, MDPI, vol. 20(5), pages 1-26, February.
    2. Sandro Provenzano & Sefi Roth & Lutz Sager, 2024. "Air Pollution and Respiratory Infectious Diseases," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(5), pages 1127-1139, May.
    3. Isphording, Ingo E. & Pestel, Nico, 2021. "Pandemic meets pollution: Poor air quality increases deaths by COVID-19," Journal of Environmental Economics and Management, Elsevier, vol. 108(C).
    4. Liu, Ziheng & Lu, Qinan, 2024. "Carbon dioxide fertilization, carbon neutrality, and food security," China Economic Review, Elsevier, vol. 85(C).
    5. Ju, Heng & Tang, Yao & Zhang, Meilan, 2024. "Air Pollution's Grip: Drug Cost and Its Heterogeneity in China," MPRA Paper 121154, University Library of Munich, Germany.
    6. Vosough, Shaghayegh & de Palma, André & Lindsey, Robin, 2022. "Pricing vehicle emissions and congestion externalities using a dynamic traffic network simulator," Transportation Research Part A: Policy and Practice, Elsevier, vol. 161(C), pages 1-24.
    7. Austin, Wes & Carattini, Stefano & Gomez-Mahecha, John & Pesko, Michael F., 2023. "The effects of contemporaneous air pollution on COVID-19 morbidity and mortality," Journal of Environmental Economics and Management, Elsevier, vol. 119(C).
    8. Guo, Liwen & Cheng, Zhiming & Tani, Massimiliano & Cook, Sarah, 2024. "Air pollution and education investment," Energy Economics, Elsevier, vol. 132(C).
    9. André de Palma & Shaghayegh Vosough & Robin Lindsey, 2020. "Pricing vehicle emissions and congestion using a dynamic traffic network simulator," THEMA Working Papers 2020-09, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    10. Qiu, Yun & Liu, Yunning & Shi, Wei & Zhou, Maigeng, 2024. "The impact of ozone pollution on mortality: Evidence from China," Journal of Environmental Economics and Management, Elsevier, vol. 125(C).

    More about this item

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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