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The health benefits of solar power generation: evidence from Chile

Author

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  • Rivera, Nathaly M.
  • Ruiz-Tagle, J. Cristobal
  • Spiller, Elisheba

Abstract

Renewable energy can yield social benefits through local air quality improvements and their subsequent effects on human health. We estimate some of these benefits using data gathered during the rapid adoption of large-scale solar power generation in Chile over the last decade. Relying on exogenous variation from solar irradiation and incremental solar generation capacity over time, we find that solar energy displaces coal generation and curtails hospital admissions due to respiratory diseases. These effects are largely manifested in cities downwind of and near coal plants that are displaced by the introduction of new solar. The reduction in exposure to air pollution from these displaced coal plants seems to be driving this relationship. Our results help quantify the health benefits that can be achieved through greater renewable energy investments.

Suggested Citation

  • Rivera, Nathaly M. & Ruiz-Tagle, J. Cristobal & Spiller, Elisheba, 2024. "The health benefits of solar power generation: evidence from Chile," LSE Research Online Documents on Economics 123756, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:123756
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    2. Mardones, Cristian & Henríquez, Valentina, 2025. "Estimating elasticities of substitution and price elasticities of industrial demand using different levels of aggregation for energy inputs," Energy, Elsevier, vol. 336(C).
    3. Harrison Fell & Melinda Sandler Morrill, 2024. "The Impact of Wind Energy on Air Pollution and Emergency Department Visits," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(1), pages 287-320, January.
    4. Evangelina Dardati & Ramiro de Elejalde & Eugenio Giolito, 2024. "On the short‐term impact of pollution: The effect of PM 2.5 on emergency room visits," Health Economics, John Wiley & Sons, Ltd., vol. 33(3), pages 482-508, March.
    5. Al-Dahidi, Sameer & Rinchi, Bilal & Dababseh, Raghad & Ayadi, Osama & Alrbai, Mohammad, 2024. "A geographic multi-scale machine learning framework for predicting solar irradiation on tilted surfaces," Energy, Elsevier, vol. 313(C).
    6. Sandra Aguilar-Gomez & Nathaly M. Rivera, 2024. "Air Pollution in the Global South: An Overview of Its Sources and Impacts," Working Papers wp561, University of Chile, Department of Economics.
    7. Liu, Ziheng, 2025. "CO2-driven crop comparative advantage and planting decision: Evidence from US cropland," Food Policy, Elsevier, vol. 130(C).
    8. Bruns, Daniel & Thomsen, Stephan L., 2025. "The Impact of Germany's Coal Phase-Out on Local Property Values," VfS Annual Conference 2025 (Cologne): Revival of Industrial Policy 325450, Verein für Socialpolitik / German Economic Association.

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    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • 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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