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Do ride-hailing services worsen freeway congestion and air quality? Evidence from Uber's entry in California

Author

Listed:
  • Kiran B. Krishnamurthy, Chandra

    (CERE - Center for Environmental and Resource Economics (CERE), Department of Forest Economics, Swedish University of Agricultural Sciences, SLU, Umeå, Sweden)

  • Ngo, Nicole

    (School of Planning, Public Policy, and Management, University of Oregon)

Abstract

We investigate the effects of Uber’s entry on freeway traffic and pollution in California. We use a panel difference-in-differences design and exploit variation in timing and occurrence of Uber’s entry into different counties using hourly freeway traffic data and daily pollution data between 2009 and 2017. We find reductions in weekday freeway congestion and PM2.5 concentrations in the average county entered. However, this reduction occurs at off-peak times and in less populated counties. During evening rush hour and in the most populated counties, we find increases in congestion and air pollution. We estimate that Uber’s entry resulted in an overall net social cost between $1.4 and $13.9 million for counties where and time periods when congestion is greatest.

Suggested Citation

  • Kiran B. Krishnamurthy, Chandra & Ngo, Nicole, 2022. "Do ride-hailing services worsen freeway congestion and air quality? Evidence from Uber's entry in California," CERE Working Papers 2021:18, CERE - the Center for Environmental and Resource Economics, revised 09 Oct 2023.
    • Handle: RePEc:hhs:slucer:2021_018
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    More about this item

    Keywords

    Air Pollution; Traffic Congestion; ride-hailing; ridesharing;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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