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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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    9. 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).
    10. 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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    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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