Economics Departmental Seminar: Professor Marion Leroutier

The local effects of coal plant closures: evidence from the UK

Co-authored with Lucie Gadenne, Rodrigo Toneto and Bobbie Upton

Abstract:

Despite growing evidence on the effect of air pollution on various dimensions of human well-being, we still know little about medium-term effects of prolonged exposure. Transmission mechanisms from physical health to broader human capital impacts are also poorly understood. This project aims to quantify the medium-term effect of air pollution on human capital by leveraging the staggered closure of all UK coal plants since 2013, which improved air quality locally. Preliminary results indicate that post-closure, prescriptions for respiratory and cardio-vascular-related diseases decrease by around 10% downwind of closed plants, while no such decrease is observed in the short-term or downwind of (less polluting) closed gas plants. Sorting may explain part of the effect, as housing prices increase by 2% downwind. Future work will leverage individual-level administrative data on children’s health and test scores to better understand the role of sorting and the interaction between health and cognitive effects.

Bio:

https://marionleroutier.github.io/