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Did the London congestion charge reduce pollution?

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  • Green, Colin P.
  • Heywood, John S.
  • Navarro Paniagua, Maria

Abstract

Recent vehicle charging schemes aim to reduce pollution and other congestion externalities. We reexamine the London congestion charge introduced in 2003 and demonstrate significant reductions in several pollutants relative to controls. We even find evidence of reductions per mile driven suggesting amelioration of a congestion externality. Yet, we find a more robust countervailing increase in harmful NO2 likely reflecting the disproportionate share of diesel vehicles exempt from the congestion charge. This unintended consequence informs on-going concern about pollution from diesel-based vehicles and provides a cautionary note regarding substitution effects implicit in many congestion charging schemes.

Suggested Citation

  • Green, Colin P. & Heywood, John S. & Navarro Paniagua, Maria, 2020. "Did the London congestion charge reduce pollution?," Regional Science and Urban Economics, Elsevier, vol. 84(C).
    • Handle: RePEc:eee:regeco:v:84:y:2020:i:c:s0166046220302581
    DOI: 10.1016/j.regsciurbeco.2020.103573
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    3. Fabio Bothner & Annette Elisabeth Töller & Paul Philipp Schnase, 2022. "Do Lawsuits by ENGOs Improve Environmental Quality? Results from the Field of Air Pollution Policy in Germany," Sustainability, MDPI, vol. 14(11), pages 1-18, May.
    4. Prieto-Rodriguez, Juan & Perez-Villadoniga, Maria J. & Salas, Rafael & Russo, Ana, 2022. "Impact of London Toxicity Charge and Ultra Low Emission Zone on NO2," Transport Policy, Elsevier, vol. 129(C), pages 237-247.
    5. Philipp Schrauth, 2022. "The Causal Effect of Cycling Infrastructure on Traffic and Accidents: Evidence from Pop-up Bike Lanes in Berlin," CEPA Discussion Papers 48, Center for Economic Policy Analysis.
    6. Shihe Fu & V. Brian Viard, 2022. "A mayors perspective on tackling air pollution," Chapters, in: Charles K.Y. Leung (ed.), Handbook of Real Estate and Macroeconomics, chapter 16, pages 413-437, Edward Elgar Publishing.
    7. NISHITATENO Shuhei & Paul BURKE, 2022. "Effects of Low Emission Zones on Air Quality, New Vehicle Registrations, and Birthweights: Evidence from Japan," Discussion papers 22109, Research Institute of Economy, Trade and Industry (RIETI).
    8. Pestel, Nico & Wozny, Florian, 2021. "Health effects of Low Emission Zones: Evidence from German hospitals," Journal of Environmental Economics and Management, Elsevier, vol. 109(C).
    9. Lana Krehic, 2022. "How do increases in electric vehicle use affect urban toll ring prices?," Public Choice, Springer, vol. 193(3), pages 187-209, December.
    10. Tang, Cheng Keat, 2021. "The Cost of Traffic: Evidence from the London Congestion Charge," Journal of Urban Economics, Elsevier, vol. 121(C).
    11. Shen, Liyin & Cheng, Guangyu & Du, Xiaoyun & Meng, Conghui & Ren, Yitian & Wang, Jinhuan, 2022. "Can urban agglomeration bring “1 + 1 > 2Effect”? A perspective of land resource carrying capacity," Land Use Policy, Elsevier, vol. 117(C).
    12. Beshir, H.A.; & Fichera, E.;, 2022. "“And Breathe Normally†: The Low Emission Zone impacts on health and well-being in England," Health, Econometrics and Data Group (HEDG) Working Papers 22/09, HEDG, c/o Department of Economics, University of York.
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    14. Roberto Ruggieri & Marco Ruggeri & Giuliana Vinci & Stefano Poponi, 2021. "Electric Mobility in a Smart City: European Overview," Energies, MDPI, vol. 14(2), pages 1-29, January.

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    More about this item

    Keywords

    Pollution; Traffic; Congestion charging;
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
    • H27 - Public Economics - - Taxation, Subsidies, and Revenue - - - Other Sources of Revenue

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