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A spatial difference-in-differences analysis of the impact of sugarcane production on respiratory diseases

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  • Chagas, André L.S.
  • Azzoni, Carlos R.
  • Almeida, Alexandre N.

Abstract

Sugarcane production represents around 10% of the agricultural area and 1% of GDP in Brazil, and has grown substantially in recent years. The traditional harvest method involves burning the field to facilitate access to the canes, resulting in well-documented negative effects on health. The existing studies do not consider the effects on health in the surrounding areas. This article presents a new variety of a spatial diff-in-diff model to control for the effects of sugarcane production in neighboring non-producing regions. This method is an addition to the Spatial Econometrics literature, as it includes spatial effects on treated and untreated regions, so that the effects on both producing and surrounding non-producing regions can be properly estimated. The results indicate that the effects on the producing regions are 78% larger than if the effects on the surrounding areas were ignored. Moreover, the effects on the surrounding areas, typically ignored in other studies, are relevant, and almost as large as the effects on the producing areas.

Suggested Citation

  • Chagas, André L.S. & Azzoni, Carlos R. & Almeida, Alexandre N., 2016. "A spatial difference-in-differences analysis of the impact of sugarcane production on respiratory diseases," Regional Science and Urban Economics, Elsevier, vol. 59(C), pages 24-36.
    • Handle: RePEc:eee:regeco:v:59:y:2016:i:c:p:24-36
    DOI: 10.1016/j.regsciurbeco.2016.04.002
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    More about this item

    Keywords

    Spatial diff-in-diff; Sugarcane producing; Health conditions; Spatial Econometrics;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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