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Health Shocks under Hospital Capacity Constraint: Evidence from Air Pollution in Sao Paulo, Brazil

Author

Listed:
  • Bruna Guidetti
  • Paula Pereda
  • Edson R. Severnini

Abstract

How responsive to health shocks are healthcare systems in the developing world? Developing countries are known to have both lower levels of hospital infrastructure and serious health shocks driven by air pollution. These shocks are transitory and may be marginal relative to other health demands, so healthcare systems might be able to manage them. On the other hand, with limited capacity hospitals may not be able to respond rapidly, possibly exacerbating health damages from pollution. In this study, we examine the consequences of health shocks induced by air pollution in a megacity in the developing world: Sao Paulo, Brazil. Using daily data on pediatric hospitalizations from 2015-2017, an instrumental variable approach based on wind speed, and a plausibly exogenous measure of hospital capacity constraints, we show that such transitory health shocks can disrupt healthcare services due to limited capacity, including for conditions seemingly unrelated to air pollution. Also, we cannot rule out severe deterioration of health outcomes.

Suggested Citation

  • Bruna Guidetti & Paula Pereda & Edson R. Severnini, 2024. "Health Shocks under Hospital Capacity Constraint: Evidence from Air Pollution in Sao Paulo, Brazil," NBER Working Papers 32224, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:32224
    Note: CH DEV EEE EH
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    Cited by:

    1. Julia Mink, 2025. "The Healthcare Costs of Air Pollution in France," CRC TR 224 Discussion Paper Series crctr224_2025_650, University of Bonn and University of Mannheim, Germany.
    2. Moz-Christofoletti, Maria Alice & Pereda, Paula Carvalho, 2021. "Winners and losers: the distributional impacts of a carbon tax in Brazil," Ecological Economics, Elsevier, vol. 183(C).
    3. Huang, Jialin & Xing, Jianwei & Yongchen Zou, Eric, 2023. "(Re)scheduling pollution exposure: The case of surgery schedules," Journal of Public Economics, Elsevier, vol. 219(C).
    4. Rivera, Nathaly M. & Ruiz-Tagle, J. Cristobal & Spiller, Elisheba, 2024. "The health benefits of solar power generation: Evidence from Chile," Journal of Environmental Economics and Management, Elsevier, vol. 126(C).

    More about this item

    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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