KP Pant, SK Pattanayak. ”Estimating Child and Adult Health Benefits from Interventions that Reduce Indoor Air Pollution in Rural Nepal.”
Large proportion of rural people in developing countries still use solid fuels for cooking. Studies have found that indoor air pollution from the smoke from solid fuels have an adverse impact on the health of the inhabitants. In the literature estimates are available for health effects of solid fuel but the estimates suffer from endogeneity bias arising from the effects of health conditions on fuel choice. This study estimates the effects of indoor air pollution on respiratory health after adjusting for endogenous health behaviors. Our study, which includes measurements on indoor air pollution, is based on a survey of 600 rural households from Syangja and Chitwan districts of Nepal. We employ probit and instrumental variable probit regressions to find the effects of interventions on chronic bronchitis, asthma and acute respiratory infections. The estimates with the instrumental variable approach are found to be larger than those that do not correct for endogeneity. Improved cook stoves and biogas are found to reduce respiratory diseases. The household shadow value of chronic bronchitis, asthma and acute respiratory infections are estimated using cost of illness method. We estimate the annual reduction in health costs by stove and biogas and found them not less than their costs.