A breath of fresh air: Coal power plant closures and health in China

This study provides the first causal evaluation of the impact of coal power plant closures on health in China using nationally representative survey data. Based on the linkage between the staggered shutdowns of 13 coal power plants between 2000 and 2015 and the China Health and Nutrition Survey (CHNS) data, we adopt the new event study approach by Sun and Abraham (2021) to compare changes in overall health statuses for residents living downwind of coal power plants (treated) with those living upwind (control), before and after plant closures. We find that incidences of sickness are reduced by 7 percentage points or 0.2 standard deviations 5-9 years after the closure. The result is robust to a host of robustness checks. Further analyses reveal that the health benefits are concentrated on older adults, rural areas, and historically low pollution regions. By considering several potential channels, we find that plant shutdowns have decreased incidences of overweight and hypertension, increased physical activity levels, and generated a wealth effect resulting from increased housing prices.