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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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    6. Vosough, Shaghayegh & de Palma, André & Lindsey, Robin, 2022. "Pricing vehicle emissions and congestion externalities using a dynamic traffic network simulator," Transportation Research Part A: Policy and Practice, Elsevier, vol. 161(C), pages 1-24.
    7. 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.
    8. Austin, Wes & Carattini, Stefano & Gomez-Mahecha, John & Pesko, Michael F., 2023. "The effects of contemporaneous air pollution on COVID-19 morbidity and mortality," Journal of Environmental Economics and Management, Elsevier, vol. 119(C).
    9. 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.
    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.
    11. Shuhei Nishitateno & Paul J. Burke & Toshi H. Arimura, 2024. "Road traffic flow and air pollution concentrations: evidence from Japan," International Journal of Economic Policy Studies, Springer, vol. 18(2), pages 357-385, August.
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    More about this item

    Keywords

    Air pollution; Road transportation; Road pricing; Assimilative capacity;
    All these keywords.

    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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