The Effect of Environmental Disamentities on Electricity Consumption: Evidence From Dengue Outbreaks in Singapore

38 Pages Posted: 22 Oct 2016 Last revised: 17 Apr 2018

See all articles by Yanying Chen

Yanying Chen

School of Economics, Singapore Management University

Yi Jin Tan

School of Economics, Singapore Management University

Date Written: April 3, 2018

Abstract

We investigate whether a major and growing environmental disamenity – dengue fever – leads to protective behavior that increases residential electricity consumption. We construct a unique panel dataset with nationwide coverage of electricity consumption and dengue risk intensity at the building level, and use geographic and temporal variation in proximity to dengue clusters to identify the effect of dengue outbreaks on electricity consumption. We find that being near a dengue cluster leads to a persistent increase in electricity consumption which varies by socio-economic status. In addition, electricity consumption rises discontinuously when a dengue cluster’s risk classification is upgraded from yellow to red. The cost of this increased electricity consumption, which is currently not accounted for, can amount to 7%–12% of the overall national costs of dengue.

Keywords: electricity consumption, dengue, protective behaviour

JEL Classification: D12, I12, Q40, Q51

Suggested Citation

Chen, Yanying and Tan, Yi Jin, The Effect of Environmental Disamentities on Electricity Consumption: Evidence From Dengue Outbreaks in Singapore (April 3, 2018). Available at SSRN: https://ssrn.com/abstract=2856879 or http://dx.doi.org/10.2139/ssrn.2856879

Yanying Chen (Contact Author)

School of Economics, Singapore Management University ( email )

90 Stamford Road
Singapore, 178903
Singapore

Yi Jin Tan

School of Economics, Singapore Management University ( email )

90 Stamford Road
Singapore, Singapore 178903
Singapore

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