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Air Pollution Dynamics and the Need for Temporally Differentiated Road Pricing

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Author Info

  • Coria, Jessica

    ()
    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Bonilla, Jorge

    ()
    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Grundström, Maria

    ()
    (Dept of Biological and Environmental Sciences)

  • Pleijel, Håkan

    ()
    (Dept of Biological and Environmental Sciences)

Abstract

In this paper we investigate the effects of the temporal variation of pollution dispersion, traffic flows and vehicular emissions on pollution concentration and illustrate the need for temporally differentiated road pricing through an application to the case of the congestion charge in Stockholm, Sweden. By accounting explicitly for the role of pollution dispersion on optimal road pricing, we allow for a more comprehensive view of the economy-ecology interactions at stake, showing that price differentiation is an optimal response to the physical environment. Most congestion charges in place incorporate price bans to mitigate congestion. Our analysis indicates that, to ensure compliance with air quality standards, such price variations should also be a response to limited pollution dispersion.

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File URL: http://hdl.handle.net/2077/34150
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Bibliographic Info

Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 572.

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Length: 26 pages
Date of creation: 09 Oct 2013
Date of revision:
Handle: RePEc:hhs:gunwpe:0572

Contact details of provider:
Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Keywords: air pollution; road transportation; road pricing; assimilative capacity;

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  1. Small, K.A. & Yan, J., 1999. "The Value of "Value Princing" of Roads: Second-Best Pricing and Product Differentiation," Papers 99-00-02, California Irvine - School of Social Sciences.
  2. Zhang, Xiaoning & Yang, Hai & Huang, Hai-Jun & Zhang, H. Michael, 2005. "Integrated scheduling of daily work activities and morning-evening commutes with bottleneck congestion," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(1), pages 41-60, January.
  3. Karlström, Anders & Franklin, Joel P., 2009. "Behavioral adjustments and equity effects of congestion pricing: Analysis of morning commutes during the Stockholm Trial," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(3), pages 283-296, March.
  4. Börjesson, Maria & Eliasson, Jonas & Hugosson, Muriel B. & Brundell-Freij, Karin, 2012. "The Stockholm congestion charges—5 years on. Effects, acceptability and lessons learnt," Transport Policy, Elsevier, vol. 20(C), pages 1-12.
  5. Eliasson, Jonas, 2008. "Lessons from the Stockholm congestion charging trial," Transport Policy, Elsevier, vol. 15(6), pages 395-404, November.
  6. Fredrik Carlsson & Olof Johansson-Stenman, 2000. "Willingness to pay for improved air quality in Sweden," Applied Economics, Taylor & Francis Journals, vol. 32(6), pages 661-669.
  7. Lindsey, Robin, 2010. "State-dependent congestion pricing with reference-dependent preferences," Working Papers 2010-4, University of Alberta, Department of Economics.
  8. Alex Anas & Robin Lindsey, 2011. "Reducing Urban Road Transportation Externalities: Road Pricing in Theory and in Practice," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 5(1), pages 66-88, Winter.
  9. Bolduc, Denis & Bonin, Sylvie & Lee-Gosselin, Martin, 2013. "A disaggregated tool for evaluation of road safety policies," Research in Transportation Economics, Elsevier, vol. 37(1), pages 79-98.
  10. Eliasson, Jonas & Hultkrantz, Lars & Nerhagen, Lena & Rosqvist, Lena Smidfelt, 2009. "The Stockholm congestion - charging trial 2006: Overview of effects," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(3), pages 240-250, March.
  11. Johansson-Stenman, Olof, 2006. "Optimal environmental road pricing," Economics Letters, Elsevier, vol. 90(2), pages 225-229, February.
  12. Wie, Byung-Wook & Tobin, Roger L., 1998. "Dynamic congestion pricing models for general traffic networks," Transportation Research Part B: Methodological, Elsevier, vol. 32(5), pages 313-327, June.
  13. Eliasson, Jonas, 2009. "A cost-benefit analysis of the Stockholm congestion charging system," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(4), pages 468-480, May.
  14. Zhang, Xiaoning & Huang, Hai-Jun & Zhang, H.M., 2008. "Integrated daily commuting patterns and optimal road tolls and parking fees in a linear city," Transportation Research Part B: Methodological, Elsevier, vol. 42(1), pages 38-56, January.
  15. Chou, Yue-Hong, 1993. "A method for measuring the spatial concentration of airline travel demand," Transportation Research Part B: Methodological, Elsevier, vol. 27(4), pages 267-273, August.
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