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When Externalities Collide: Influenza and Pollution

Author

Listed:
  • Joshua S. Graff Zivin
  • Matthew J. 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 increased levels of contemporaneous pollution increase influenza hospitalizations. We exploit random variation in effectiveness of the influenza vaccine as an additional instrument to show 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 S. Graff Zivin & Matthew J. Neidell & Nicholas J. Sanders & Gregor Singer, 2020. "When Externalities Collide: Influenza and Pollution," NBER Working Papers 27982, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:27982
    Note: EEE EH PE
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    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • 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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