IDEAS home Printed from https://ideas.repec.org/a/eee/jhecon/v98y2024ics016762962400081x.html
   My bibliography  Save this article

Health implications of housing retrofits: Evidence from a population-wide weatherization program

Author

Listed:
  • Künn, Steffen
  • Palacios, Juan

Abstract

This study provides the first population-representative quasi-experimental estimates on the impact of housing upgrades on occupant health. We analyze the exceptional period of renovations in East Germany following the German reunification during the 1990s. Triggered by one of the largest governmental loan programs in history, 3.6 million dwellings were renovated, focussing on upgrades to the building insulation, windows and heating systems. Using rich survey data based on the Socio-Economic Panel (SOEP) as well as administrative records of hospital admissions in Germany, we consistently show that housing weatherization upgrades sustainably reduce the demand for health care among the elderly sample of the population.

Suggested Citation

  • Künn, Steffen & Palacios, Juan, 2024. "Health implications of housing retrofits: Evidence from a population-wide weatherization program," Journal of Health Economics, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:jhecon:v:98:y:2024:i:c:s016762962400081x
    DOI: 10.1016/j.jhealeco.2024.102936
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S016762962400081X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jhealeco.2024.102936?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Billings, Stephen B. & Schnepel, Kevin T., 2017. "The value of a healthy home: Lead paint remediation and housing values," Journal of Public Economics, Elsevier, vol. 153(C), pages 69-81.
    2. François Cohen & Antoine Dechezleprêtre, 2022. "Mortality, Temperature, and Public Health Provision: Evidence from Mexico," American Economic Journal: Economic Policy, American Economic Association, vol. 14(2), pages 161-192, May.
    3. Rema Hanna & Esther Duflo & Michael Greenstone, 2016. "Up in Smoke: The Influence of Household Behavior on the Long-Run Impact of Improved Cooking Stoves," American Economic Journal: Economic Policy, American Economic Association, vol. 8(1), pages 80-114, February.
    4. Barron, Manuel & Torero, Maximo, 2017. "Household electrification and indoor air pollution," Journal of Environmental Economics and Management, Elsevier, vol. 86(C), pages 81-92.
    5. Galiani, Sebastián & Gertler, Paul J. & Undurraga, Raimundo & Cooper, Ryan & Martínez, Sebastián & Ross, Adam, 2017. "Shelter from the storm: Upgrading housing infrastructure in Latin American slums," Journal of Urban Economics, Elsevier, vol. 98(C), pages 187-213.
    6. Kenneth Y. Chay & Michael Greenstone, 2003. "The Impact of Air Pollution on Infant Mortality: Evidence from Geographic Variation in Pollution Shocks Induced by a Recession," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(3), pages 1121-1167.
    7. Tamara Schmid, 2015. "Costs of treating cardiovascular events in Germany: a systematic literature review," Health Economics Review, Springer, vol. 5(1), pages 1-11, December.
    8. Burda, Michael C., 1993. "The determinants of East-West German migration: Some first results," European Economic Review, Elsevier, vol. 37(2-3), pages 452-461, April.
    9. Joshua Graff Zivin & Matthew Neidell, 2013. "Environment, Health, and Human Capital," Journal of Economic Literature, American Economic Association, vol. 51(3), pages 689-730, September.
    10. Derek Headey & Giordano Palloni, 2019. "Water, Sanitation, and Child Health: Evidence From Subnational Panel Data in 59 Countries," Demography, Springer;Population Association of America (PAA), vol. 56(2), pages 729-752, April.
    11. Hans‐Werner Sinn, 2002. "Germany’s Economic Unification: An Assessment after Ten Years," Review of International Economics, Wiley Blackwell, vol. 10(1), pages 113-128, February.
    12. Kenneth Gillingham & Amelia Keyes & Karen Palmer, 2018. "Advances in Evaluating Energy Efficiency Policies and Programs," Annual Review of Resource Economics, Annual Reviews, vol. 10(1), pages 511-532, October.
    13. Matias D. Cattaneo & Sebastian Galiani & Paul J. Gertler & Sebastian Martinez & Rocio Titiunik, 2009. "Housing, Health, and Happiness," American Economic Journal: Economic Policy, American Economic Association, vol. 1(1), pages 75-105, February.
    14. Esther Duflo, 2012. "Women Empowerment and Economic Development," Journal of Economic Literature, American Economic Association, vol. 50(4), pages 1051-1079, December.
    15. Callaway, Brantly & Sant’Anna, Pedro H.C., 2021. "Difference-in-Differences with multiple time periods," Journal of Econometrics, Elsevier, vol. 225(2), pages 200-230.
    16. Julien Lafortune & Jesse Rothstein & Diane Whitmore Schanzenbach, 2018. "School Finance Reform and the Distribution of Student Achievement," American Economic Journal: Applied Economics, American Economic Association, vol. 10(2), pages 1-26, April.
    17. Deschenes, Olivier, 2014. "Temperature, human health, and adaptation: A review of the empirical literature," Energy Economics, Elsevier, vol. 46(C), pages 606-619.
    18. 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.
    19. Juan Palacios & Piet Eichholtz & Nils Kok & Erdal Aydin, 2021. "The impact of housing conditions on health outcomes," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 49(4), pages 1172-1200, December.
    20. Tamara Schmid & Weiwei Xu & Shravanthi Gandra & Galin Michailov, 2015. "Erratum to: ‘Costs of treating cardiovascular events in Germany: a systematic literature review’," Health Economics Review, Springer, vol. 6(1), pages 1-1, December.
    21. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-255, March-Apr.
    22. Maidment, Christopher D. & Jones, Christopher R. & Webb, Thomas L. & Hathway, E. Abigail & Gilbertson, Jan M., 2014. "The impact of household energy efficiency measures on health: A meta-analysis," Energy Policy, Elsevier, vol. 65(C), pages 583-593.
    23. 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.
    24. Florencia Devoto & Esther Duflo & Pascaline Dupas & William Parienté & Vincent Pons, 2012. "Happiness on Tap: Piped Water Adoption in Urban Morocco," American Economic Journal: Economic Policy, American Economic Association, vol. 4(4), pages 68-99, November.
    25. Spencer Banzhaf & Lala Ma & Christopher Timmins, 2019. "Environmental Justice: The Economics of Race, Place, and Pollution," Journal of Economic Perspectives, American Economic Association, vol. 33(1), pages 185-208, Winter.
    26. Baker, Andrew C. & Larcker, David F. & Wang, Charles C.Y., 2022. "How much should we trust staggered difference-in-differences estimates?," Journal of Financial Economics, Elsevier, vol. 144(2), pages 370-395.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jan Goebel & Christian Krekel & Katrin Rehdanz, 2025. "The value of a park in crises: Quantifying the health and wellbeing benefits of green spaces using exogenous variations in use values," CEP Discussion Papers dp2106, Centre for Economic Performance, LSE.

    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. Steffen Künn & Juan Palacios, 2023. "Health Implications of Building Retrofits: Evidence from a Population-Wide Weatherization Program," SOEPpapers on Multidisciplinary Panel Data Research 1186, DIW Berlin, The German Socio-Economic Panel (SOEP).
    2. Künn, Steffen & Palacios, Juan, 2023. "Health Implications of Building Retrofits: Evidence from a Population-Wide Weatherization Program," IZA Discussion Papers 15986, Institute of Labor Economics (IZA).
    3. Juan Palacios & Piet Eichholtz & Nils Kok & Erdal Aydin, 2021. "The impact of housing conditions on health outcomes," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 49(4), pages 1172-1200, December.
    4. R. Jisung Park & Joshua Goodman & Michael Hurwitz & Jonathan Smith, 2020. "Heat and Learning," American Economic Journal: Economic Policy, American Economic Association, vol. 12(2), pages 306-339, May.
    5. Robert Metcalfe & Sefi Roth, 2025. "Making the Invisible Visible: The Impact of Revealing Indoor Air Pollution on Behavior and Welfare," Framed Field Experiments 00819, The Field Experiments Website.
    6. Mullins, Jamie T. & White, Corey, 2020. "Can access to health care mitigate the effects of temperature on mortality?," Journal of Public Economics, Elsevier, vol. 191(C).
    7. Ziebarth, N. R. & Schmitt, M. & Karlsson, M., 2013. "The short-term population health effects of weather and pollution: implications of climate change," Health, Econometrics and Data Group (HEDG) Working Papers 13/34, HEDG, c/o Department of Economics, University of York.
    8. Bishop, Kelly C. & Kuminoff, Nicolai V. & Mathes, Sophie M. & Murphy, Alvin D., 2024. "The marginal cost of mortality risk reduction: Evidence from housing markets," Journal of Urban Economics, Elsevier, vol. 139(C).
    9. Ball, Alastair, 2014. "Air pollution, foetal mortality, and long-term health: Evidence from the Great London Smog," MPRA Paper 63229, University Library of Munich, Germany, revised 25 Mar 2015.
    10. Olivier Deschênes & Michael Greenstone & Joseph S. Shapiro, 2017. "Defensive Investments and the Demand for Air Quality: Evidence from the NOx Budget Program," American Economic Review, American Economic Association, vol. 107(10), pages 2958-2989, October.
    11. Mika AKESAKA & Hitoshi SHIGEOKA, 2025. "Hotter Days, Wider Gap: The distributional impact of heat on student achievement," Discussion papers 25024, Research Institute of Economy, Trade and Industry (RIETI).
    12. Juliana Helo Sarmiento, 2022. "Into the tropics: Temperature, mortality, and access to health care in Colombia," Documentos CEDE 20127, Universidad de los Andes, Facultad de Economía, CEDE.
    13. Valenti, Giulia & Vona, Francesco, 2024. "Hot Wages: How Do Heat Waves Change the Earnings Distribution?," FEEM Working Papers 348848, Fondazione Eni Enrico Mattei (FEEM).
    14. Suchita Srinivasan, 2023. "Social Policies and Adaptation to Extreme Weather: Evidence from South Africa," CER-ETH Economics working paper series 23/381, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    15. Alessandro Palma & Inna Petrunyk & Daniela Vuri, 2022. "Prenatal air pollution exposure and neonatal health," Health Economics, John Wiley & Sons, Ltd., vol. 31(5), pages 729-759, May.
    16. Lai, Wangyang & Lin, Liguo & Shen, Xiaochi & Zhou, Maigeng, 2025. "Investing in a transition fuel: The remarkable decline in mortality from China's rollout of natural gas infrastructure," Journal of Environmental Economics and Management, Elsevier, vol. 130(C).
    17. Li, Haoyang & Chen, Yifeng & Ma, Mingming, 2024. "Temperature and life satisfaction: Evidence from Chinese older adults," Ecological Economics, Elsevier, vol. 225(C).
    18. Helo Sarmiento, Juliana, 2023. "Into the tropics: Temperature, mortality, and access to health care in Colombia," Journal of Environmental Economics and Management, Elsevier, vol. 119(C).
    19. Jin, Bohan & Li, Zheng, 2024. "Air pollution, healthcare use, and inequality: Evidence from China," Economic Modelling, Elsevier, vol. 141(C).
    20. Garg, Teevrat & McCord, Gordon C. & Montfort, Aleister, 2020. "Can Social Protection Reduce Environmental Damages?," IZA Discussion Papers 13247, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    Housing quality; Renovation program; Health;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

    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:eee:jhecon:v:98:y:2024:i:c:s016762962400081x. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505560 .

    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.