Can white elephants kill? Unintended consequences of infrastructure development

Arbeitspapier

I provide evidence of the severe social costs imposed by infrastructure projects that are being implemented (i.e., projects started but not yet completed) in the context of sewerage in Peru. Using a counterfactual implementation predicted from geography-based cost considerations as an instrument, I show that implemented projects increase infant and under-five mortality. These results are driven by hazards, poor hygienic conditions and unsafe behavior, which increase deaths by waterborne diseases and accidents. Delays and mid-construction halting are common, and exacerbate the lethal effects of projects. Failing to take the implementation phase into account could severely bias the welfare evaluation of infrastructure.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IFS Working Paper ; No. W22/27

Classification and Topics

• Classification: Wirtschaft ; Multiple or Simultaneous Equation Models: Instrumental Variables (IV) Estimation ; National Government Expenditures and Related Policies: Infrastructures; Other Public Investment and Capital Stock ; Health and Economic Development ; Demographic Economics: Public Policy ; Economic History: Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy: Latin America; Caribbean ; Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
• Subject: Infrastructure ; Implementation ; Public Expenditure ; Mortality ; Instrumental Variable

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bancalari, Antonella
• Event: Veröffentlichung
• (who): Institute for Fiscal Studies (IFS)
• (where): London
• (when): 2022

Further information

• DOI: doi:10.1920/wp.ifs.2022.2722
• Handle: http://hdl.handle.net/10419/267958
• Last update: 10.03.2025, 11:44 AM CET