Work

Energy aid, environmental risk, and household health effects

Year: 2025

Type: article

Abstract: This study examines the health impacts of energy aid, a topic that has received limited attention compared to its environmental and energy-related effects. Using an unbalanced panel dataset, we identify an inverted U-shaped relationship between energy aid and household health loss, with benefits emerging only after aid exceeds a turning point. The effects differ by aid type, source, and recipient characteristics. Among all categories, only energy policy aid has an inverted U-shaped effect on household health losses. Aid from non-DAC donors (including non-DAC countries, private donors, and multilateral organizations) follows an inverted U-shaped pattern, while aid from DAC countries shows no clear relationship. Furthermore, the impact of energy aid also varies across demographic groups, including age, gender, and income levels. For example, children experience health benefits earlier than adults. We also find a threshold effect of government quality. Only when government quality exceeds the threshold does energy aid reduce health loss. These findings suggest that improving the continuity and equity of aid and strengthening governance in recipient countries are key to enhancing the health impact of energy aid. • Energy aid has an inverted U-shaped effect on household health losses. • Health benefits emerge only when energy aid exceeds a certain level. • The impact of energy aid differs by type, source, and recipient group. • Children and residents in vulnerable countries benefit earlier from energy aid. • Only strong recipient governance enables energy aid to reduce health losses.

Source: Economic Modelling

DOI: 10.1016/j.econmod.2025.107388

Authors: Yang Liu, Tooraj Jamasb, Kangyin Dong, Rabindra Nepal, Congyu Zhao

Institutions: University of International Business and Economics, Pôle Léonard de Vinci, Copenhagen Business School, University of Wollongong

Language: English

Topic: International Development and Aid

Subfield: Development

Field: Social Sciences

Domain: Social Sciences

SDGs: Good health and well-being, No poverty, Reduced inequalities, Affordable and clean energy, Zero hunger

Open Access status: hybrid

Estimated APC paid: $3,660