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Does subsidized promotion of LPG affect health outcomes? A revision of evidence

Author

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  • Cirilo Mendoza, Elibeth

    (University of Warwick)

Abstract

The use of traditional biomass fuels such as wood and dung for cooking is a prevalent practice in low-income countries, leading to significant indoor air pollution and adverse health outcomes. Previous studies have found that the promotion of subsidized Liquefied Petroleum Gas (LPG) had a negative impact on health outcomes in Peru. This study revisits this evidence by leveraging the national FISE program, which provided discounted LPG to low-income households. Using a staggered difference-in-differences approach combined with district-level data from the Peruvian DHS from 2005 to 2020, this study evaluates the effects of the FISE program on infant mortality and respiratory health outcomes. The findings reveal that the program increased LPG adoption as a primary cooking fuel by 8% (or 2.8 pp). However, the evidence on the program’s impact on reducing infant mortality and acute respiratory infections remains inconclusive, highlighting the complexity of measuring health impacts in the context of energy transitions. JEL classifications: I15 ; O13 ; Q53

Suggested Citation

  • Cirilo Mendoza, Elibeth, 2025. "Does subsidized promotion of LPG affect health outcomes? A revision of evidence," Warwick-Monash Economics Student Papers 83, Warwick Monash Economics Student Papers.
    • Handle: RePEc:wrk:wrkesp:83
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    File URL: https://warwick.ac.uk/fac/soc/economics/research/wmesp/manage/83_-_cirilo.pdf
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    More about this item

    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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