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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.
Authors
![Antonella Bancalari](/sites/default/files/styles/square_desktop/public/2022-07/Antonella_Bancalari2.jpg?itok=OF9WqJnH)
Senior Research Economist
Antonella Bancalari is a Senior Research Economist at the Institute for Fiscal Studies.
Working Paper details
- DOI
- 10.1920/wp.ifs.2022.2722
- Publisher
- Institute for Fiscal Studies
Suggested citation
Bancalari, A. (2022). Can white elephants kill? Unintended consequences of infrastructure development. London: Institute for Fiscal Studies. Available at: https://ifs.org.uk/publications/can-white-elephants-kill-unintended-consequences-infrastructure-development (accessed: 30 June 2024).
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