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Energy Production and Health Externalities: Evidence from Oil Refinery Strikes in France

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  • Emmanuelle Lavaine
  • Matthew Neidell

Abstract

This paper examines the effect of energy production on health using a recent strike that affected oil refineries in France as a natural experiment. First, we show that the temporary reduction in refining led to a significant reduction in sulfur dioxide (SO2) concentrations. Second, this shock significantly increased birth weight and gestational age of newborns, particularly for those exposed to the strike during the first and third trimesters of pregnancy, and decreased asthma and bronchitis admissions. Back-of-the-envelope calculations suggest that a 1-unit (or 26%) decline in monthly SO2 leads to an €89 million increase in lifetime earnings per birth-year cohort. This externality from oil refineries should be an important part of policy discussions surrounding the production of energy.

Suggested Citation

  • Emmanuelle Lavaine & Matthew Neidell, 2017. "Energy Production and Health Externalities: Evidence from Oil Refinery Strikes in France," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(2), pages 447-477.
    • Handle: RePEc:ucp:jaerec:doi:10.1086/691554
    DOI: 10.1086/691554
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    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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