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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

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: 3 December 2023).
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