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Does expanding regional train service reduce air pollution?

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  • Lalive, Rafael
  • Luechinger, Simon
  • Schmutzler, Armin

Abstract

We assess how regional rail service affects air pollution in Germany, where rail service is procured in auctions or negotiations. We argue that the procurement mode is plausibly exogenous, and show that auctions deliver stronger rail service growth than negotiations. Instrumenting rail service growth with procurement mode, we find that increasing rail service by 10% reduces carbon monoxide and nitrogen oxide pollution by around 1% and 2%, respectively. Sulfur dioxide and ozone, pollutants with no clear link to rail, are not affected. Expanding rail service reduces car and motorcycle use, especially on leisure and shopping trips. The effects of railway services on car and motorcycle use and on air pollution build up over time. Lives saved by reducing pollution via rail service growth are worth substantially more than the required subsidies.

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  • Lalive, Rafael & Luechinger, Simon & Schmutzler, Armin, 2018. "Does expanding regional train service reduce air pollution?," Journal of Environmental Economics and Management, Elsevier, vol. 92(C), pages 744-764.
    • Handle: RePEc:eee:jeeman:v:92:y:2018:i:c:p:744-764
    DOI: 10.1016/j.jeem.2017.09.003
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    2. Karolina Krzykowska-Piotrowska & Marek Piotrowski & Anna Organiściak-Krzykowska & Emilia Kwiatkowska, 2022. "Maritime or Rail: Which of These Will Save the Planet? EU Macro-Regional Strategies and Reality," Sustainability, MDPI, vol. 14(6), pages 1-30, March.
    3. Lee, Wang-Sheng & Tran, Trang My & Yu, Lamont Bo, 2023. "Green infrastructure and air pollution: Evidence from highways connecting two megacities in China," Journal of Environmental Economics and Management, Elsevier, vol. 122(C).
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    5. Niklas Gohl & Philipp Schrauth, 2022. "Ticket to Paradise? The Effect of a Public Transport Subsidy on Air Quality," CEPA Discussion Papers 50, Center for Economic Policy Analysis.
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    7. Huang, Yan & Ma, Liang & Cao, Jason, 2023. "Exploring spatial heterogeneity in the high-speed rail impact on air quality," Journal of Transport Geography, Elsevier, vol. 106(C).
    8. Zhang, Li-Hao & Liu, Chunxiao & Zhang, Cheng & Wang, Shanshan, 2023. "Upstream encroachment and downstream outsourcing in competing shipping supply chains," International Journal of Production Economics, Elsevier, vol. 255(C).
    9. Austin, Wes & Carattini, Stefano & Gomez-Mahecha, John & Pesko, Michael F., 2023. "The effects of contemporaneous air pollution on COVID-19 morbidity and mortality," Journal of Environmental Economics and Management, Elsevier, vol. 119(C).
    10. Gao, Yanyan & Zheng, Jianghuai & Wang, Xin, 2022. "Does high-speed rail reduce environmental pollution? Establishment-level evidence from China," Socio-Economic Planning Sciences, Elsevier, vol. 83(C).
    11. Kim, Yeong Jae & Sarmiento, Luis, 2021. "The Air Quality Effects of Uber," RFF Working Paper Series 21-34, Resources for the Future.
    12. Zhu, Xinhua & Dai, Chun & Wei, Yigang, 2022. "Does the opening of high-speed railway improve air quality? Evidence from China," Socio-Economic Planning Sciences, Elsevier, vol. 84(C).
    13. Wes Austin & Stefano Carattini & John Gomez Mahecha & Michael Pesko, 2020. "COVID-19 Mortality and Contemporaneous Air Pollution," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper2016, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
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    15. Diao, Mi & Li, Qiang & Sing, Tien Foo & Zhan, Changwei, 2023. "Disamenities of living close to transit tracks: Evidence from Singapore's MRT system," Regional Science and Urban Economics, Elsevier, vol. 100(C).

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    More about this item

    Keywords

    Railways; Pollution; Subsidies; Transportation; Environmental policy;
    All these keywords.

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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