Health implications of housing retrofits: Evidence from a population-wide weatherization program

Abstract

This study provides the first population-representative quasi-experimental estimates on the impact of housing upgrades on occupant health. We analyze the exceptional period of renovations in East Germany following the German reunification during the 1990s. Triggered by one of the largest governmental loan programs in history, 3.6 million dwellings were renovated, focussing on upgrades to the building insulation, windows and heating systems. Using rich survey data based on the Socio-Economic Panel (SOEP) as well as administrative records of hospital admissions in Germany, we consistently show that housing weatherization upgrades sustainably reduce the demand for health care among the elderly sample of the population.