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The Health Benefits of Solar Power Generation: Evidence from Chile

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  • Nathaly M Rivera
  • Cristobal Ruiz Tagle, Elisheba Spiller

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 incremental solar generation capacity over time, we find that solar energy displaces fossil fuel generation (primarily coal-fired generation) and curtails hospital admissions, particularly those due to lower respiratory diseases. These effects are noted mostly in cities downwind of displaced fossil fuel generation and are present across all age groups. Our results document the existence of an additional channel through which renewable energy can increase social welfare.

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  • Nathaly M Rivera & Cristobal Ruiz Tagle, Elisheba Spiller, 2021. "The Health Benefits of Solar Power Generation: Evidence from Chile," Working Papers, Department of Economics 2021_04, University of São Paulo (FEA-USP).
    • Handle: RePEc:spa:wpaper:2021wpecon04
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    1. Dardati, Evangelina & de Elejalde, Ramiro & Giolito, Eugenio, 2021. "On the Short-Term Impact of Pollution: The Effect of PM 2.5 on Emergency Room Visits," IZA Discussion Papers 14599, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Coal-fired power plants; coal displacement; solar generation; power plants; pollution; morbidity; developing countries; Latin America;
    All these keywords.

    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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