The welfare effects of time reallocation

Evidence from Daylight Saving Time

Datos Bibliográficos

ID9722673
AutoresJoan Costa-Font (0000-0001-7174-7919, autor de correspondencia), Joan Costa‐Font (London School of Economics and Political Science (LSE), IZA and CESifo), Sarah Fleche (0000-0001-8927-075X, University Paris 1 Pantheon‐Sorbonne, CNRS, Sorbonne Economics Centre and Centre for Economic Performance (LSE)), Ricardo Pagan (0000-0002-7391-5127, Universidad de Málaga)
Año2024
Volumen91
Número362
Páginas547-568
Fecha de publicación2024-04-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaEconomica (JOURNAL)
Identificadores de la revistaISSN: 0013-0427 • E-ISSN: 1468-0335
EditorialWiley (PUBLISHER • GB)
DOI10.1111/ecca.12510
OpenAlexW3191478714
IdiomaEN
Citas recibidas1
Referencias citadas40

Daylight Saving Time (DST) is a widely adopted practice implemented by over 70 countries to align sunlight with day‐to‐day activities and reduce energy demands. However, we do not have a clear knowledge of how it affects individuals' welfare. Using a regression discontinuity combined with a difference‐in‐differences design, we find that the Spring DST transition causes a significant decline in life satisfaction. By inducing a reallocation of time, the transition into DST deteriorates sleep quality and increases time stress, which in turn affects physical and emotional health. Using an event study approach, we find that such effects persist for about six days after the DST transition. Conversely, we provide evidence that the Autumn DST transition gives rise to a significant increase in life satisfaction. Finally, using a simple cost‐benefit analysis, we discuss the potential benefits of ending DST

Daylight · Demographic economics · Economics · Public economics · Regression discontinuity design · Welfare · Energy, Environment, and Transportation Policies · Impact of Light on Environment and Health · Medicine · Psychological Well-being and Life Satisfaction · Psychology