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Driving restrictions that work? Quito's Pico y Placa Program

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  • Paul E. Carrillo
  • Arun S. Malik
  • Yiseon Yoo

Abstract

Programs to reduce traffic congestion and air pollution by restricting use of motor vehicles on working days have generally not met with success, given existing studies of such programs. We conduct the first study of Quito, Ecuador's four-year-old Pico y Placa program and find that it has reduced ambient concentrations of carbon monoxide (CO), a pollutant primarily emitted by vehicles, by 9% to 11% during peak traffic hours. Given that ambient concentrations of CO generally track the spatial and temporal distributions of traffic, these reductions in pollution suggest similar reductions in vehicle flows. We find no significant evidence that traffic has shifted to other times of the day or week, or to other locations.

Suggested Citation

  • Paul E. Carrillo & Arun S. Malik & Yiseon Yoo, 2016. "Driving restrictions that work? Quito's Pico y Placa Program," Canadian Journal of Economics, Canadian Economics Association, vol. 49(4), pages 1536-1568, November.
    • Handle: RePEc:cje:issued:v:49:y:2016:i:4:p:1536-1568
    DOI: 10.1111/caje.12243
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    Cited by:

    1. Rivera, Nathaly M., 2021. "Air quality warnings and temporary driving bans: Evidence from air pollution, car trips, and mass-transit ridership in Santiago," Journal of Environmental Economics and Management, Elsevier, vol. 108(C).
    2. repec:lpe:wpaper:201829 is not listed on IDEAS
    3. Viard, V. Brian & Fu, Shihe, 2015. "The effect of Beijing's driving restrictions on pollution and economic activity," Journal of Public Economics, Elsevier, vol. 125(C), pages 98-115.
    4. Carrillo, Paul E. & Lopez-Luzuriaga, Andrea & Malik, Arun S., 2018. "Pollution or crime: The effect of driving restrictions on criminal activity," Journal of Public Economics, Elsevier, vol. 164(C), pages 50-69.
    5. Li, Ling & Yang, Linchuan, 2023. "Effects of driving restrictions on air quality and housing prices: Evidence from Chengdu, China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 176(C).
    6. Venables, Anthony & Duranton, Gilles, 2018. "Place-Based Policies for Development," CEPR Discussion Papers 12889, C.E.P.R. Discussion Papers.
    7. Piera Bello, 2021. "The environmental cost and the accident externality of driving: Evidence from the Swiss franc's appreciation," Economic Inquiry, Western Economic Association International, vol. 59(3), pages 1440-1458, July.
    8. Xia, Fan & Cheng, Ximeng & Lei, Zhen & Xu, Jintao & Liu, Yu & Zhang, Yingxin & Zhang, Qinghong, 2023. "Heterogeneous impacts of local traffic congestion on local air pollution within a city: Utilizing taxi trajectory data," Journal of Environmental Economics and Management, Elsevier, vol. 122(C).
    9. Yanez-Pagans, Patricia & Martinez, Daniel & Mitnik, Oscar A. & Scholl, Lynn & Vazquez, Antonia, 2018. "Urban Transport Systems in Latin America and the Caribbean: Challenges and Lessons Learned," IZA Discussion Papers 11812, Institute of Labor Economics (IZA).
    10. Arcila, Andres & Chen, Tao & Lu, Xiaolan, 2018. "The effectiveness of consumption tax on the reduction of car pollution in China," CLEF Working Paper Series 15, Canadian Labour Economics Forum (CLEF), University of Waterloo.
    11. Patricia Yañez-Pagans & Daniel Martinez & Oscar A. Mitnik & Lynn Scholl & Antonia Vazquez, 2019. "Urban transport systems in Latin America and the Caribbean: lessons and challenges," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 28(1), pages 1-25, December.
    12. Allen Blackman & Francisco Alpízar & Fredrik Carlsson & Marisol Rivera Planter, 2018. "A Contingent Valuation Approach to Estimating Regulatory Costs: Mexico’s Day without Driving Program," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 5(3), pages 607-641.
    13. Jerch, Rhiannon & Barwick, Panle Jia & Li, Shanjun & Wu, Jing, 2024. "The impact of road rationing on housing demand and sorting," Journal of Urban Economics, Elsevier, vol. 140(C).
    14. Sun, Chuanwang & Xu, Shuhua & Yang, Mian & Gong, Xu, 2022. "Urban traffic regulation and air pollution: A case study of urban motor vehicle restriction policy," Energy Policy, Elsevier, vol. 163(C).
    15. Claudia N. Berg & Uwe Deichmann & Yishen Liu & Harris Selod, 2017. "Transport Policies and Development," Journal of Development Studies, Taylor & Francis Journals, vol. 53(4), pages 465-480, April.
    16. Salgado, Edgar & Mitnik, Oscar A., 2021. "Spatial and Time Spillovers of Driving Restrictions: Causal Evidence from Limas Pico y Placa Policy," IDB Publications (Working Papers) 11818, Inter-American Development Bank.
    17. Lyu, Xueying, 2022. "Car restriction policies and housing markets," Journal of Development Economics, Elsevier, vol. 156(C).
    18. Rhiannon Jerch & Panle Jia Barwick & Shanjun Li & Jing Wu, 2020. "Road Rationing Policies and Housing Markets," DETU Working Papers 2004, Department of Economics, Temple University.
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    20. Blackman, Allen & Qin, Ping & Yang, Jun, 2020. "How costly are driving restrictions? Contingent valuation evidence from Beijing," Journal of Environmental Economics and Management, Elsevier, vol. 104(C).

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    JEL classification:

    • 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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