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Publications
  • September 2023
  • Article
  • Journal of Development Economics

The Health Costs of Dirty Energy: Evidence from the Capacity Market in Colombia

By: Achyuta Adhvaryu, Theresa Molina, Anant Nyshadham, Jorge Tamayo and Nicholas Torres
  • Format:Print
  • | Pages:9
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Abstract

The health effects of “dirty” (fossil fuel driven) energy production are difficult to measure accurately due to the endogeneity of fuel choice. We exploit an electricity policy in Colombia that generates a price-based trigger for the use of thermal energy sources. Comparing municipalities near high versus low capacity plants, we first document that the activation of this trigger--which increased thermal energy production--led to significantly higher local pollution levels. This change increased cardiovascular-related ER mortality by 56% and respiratory-related morbidity by 9%. Our results translate to a cost of 996 million USD in terms of lives lost and higher healthcare costs.

Keywords

Pollution; Health Disorders; Energy Industry; Colombia

Citation

Adhvaryu, Achyuta, Theresa Molina, Anant Nyshadham, Jorge Tamayo, and Nicholas Torres. "The Health Costs of Dirty Energy: Evidence from the Capacity Market in Colombia." Art. 103116. Journal of Development Economics 164 (September 2023).
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About The Author

Jorge Tamayo

Strategy
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  • Prices and Concentration: A U-shape? Theory and Evidence from Renewables By: Michele Fioretti, Junnan He and Jorge Tamayo
  • Training Within Firms By: Brayan Diaz, Andrea Neyra-Nazarrett, Julian Ramirez, Raffaella Sadun and Jorge Tamayo
  • Helium Mobile By: Shikhar Ghosh, Jorge Tamayo and Mahesh Ramakrishnan
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