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Air pollution dynamics and the need for temporally differentiated road pricing

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  • Coria, Jessica
  • Bonilla, Jorge
  • Grundström, Maria
  • Pleijel, Håkan

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 bands 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.

Suggested Citation

  • Coria, Jessica & Bonilla, Jorge & Grundström, Maria & Pleijel, Håkan, 2015. "Air pollution dynamics and the need for temporally differentiated road pricing," Transportation Research Part A: Policy and Practice, Elsevier, vol. 75(C), pages 178-195.
    • Handle: RePEc:eee:transa:v:75:y:2015:i:c:p:178-195
    DOI: 10.1016/j.tra.2015.03.004
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    Cited by:

    1. De Vos, Jonas, 2016. "Road pricing in a polycentric urban region: Analysing a pilot project in Belgium," Transport Policy, Elsevier, vol. 52(C), pages 134-142.
    2. repec:eee:transb:v:105:y:2017:i:c:p:297-314 is not listed on IDEAS
    3. Coria, Jessica & Zhang, Xiao-Bing, 2016. "Optimal Environmental Road Pricing and Integrated Daily Commuting Patterns," Working Papers in Economics 682, University of Gothenburg, Department of Economics.
    4. Fu, Shihe & Gu, Yizhen, 2017. "Highway toll and air pollution: Evidence from Chinese cities," Journal of Environmental Economics and Management, Elsevier, vol. 83(C), pages 32-49.
    5. repec:eee:transa:v:103:y:2017:i:c:p:235-249 is not listed on IDEAS
    6. Budak, Aysenur & Ustundag, Alp & Guloglu, Bulent, 2017. "A forecasting approach for truckload spot market pricing," Transportation Research Part A: Policy and Practice, Elsevier, vol. 97(C), pages 55-68.

    More about this item

    Keywords

    Air pollution; Road transportation; Road pricing; Assimilative capacity;

    JEL classification:

    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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