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Air Pollution Dynamics and the Need for Temporally Differentiated Road Pricing

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  • Coria, Jessica

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Bonilla, Jorge

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Grundström, Maria

    (Dept of Biological and Environmental Sciences)

  • Pleijel, Håkan

    (Dept of Biological and Environmental Sciences)

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 bans 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, 2013. "Air Pollution Dynamics and the Need for Temporally Differentiated Road Pricing," Working Papers in Economics 572, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0572
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    File URL: http://hdl.handle.net/2077/34150
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    Cited by:

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    3. André de Palma & Shaghayegh Vosough & Robin Lindsey, 2020. "Pricing vehicle emissions and congestion using a dynamic traffic network simulator," THEMA Working Papers 2020-09, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    4. Zhong, Shaopeng & Bushell, Max, 2017. "Impact of the built environment on the vehicle emission effects of road pricing policies: A simulation case study," Transportation Research Part A: Policy and Practice, Elsevier, vol. 103(C), pages 235-249.
    5. 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.
    6. Wang, Hua & Zhao, De & Cai, Yutong & Meng, Qiang & Ong, Ghim Ping, 2021. "Taxi trajectory data based fast-charging facility planning for urban electric taxi systems," Applied Energy, Elsevier, vol. 286(C).
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    8. 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.
    9. 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.
    10. 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).
    11. Cavallaro, Federico & Giaretta, Federico & Nocera, Silvio, 2018. "The potential of road pricing schemes to reduce carbon emissions," Transport Policy, Elsevier, vol. 67(C), pages 85-92.
    12. Coria, Jessica & Zhang, Xiao-Bing, 2017. "Optimal environmental road pricing and daily commuting patterns," Transportation Research Part B: Methodological, Elsevier, vol. 105(C), pages 297-314.
    13. 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.
    14. Tan, Yu & Sun, Zhanbo & Zhu, Baichuan & Qin, Ziye & Zhao, Yu & Wang, Xuting, 2024. "Minimize population exposure to vehicle-generated emissions by road pricing," Transport Policy, Elsevier, vol. 148(C), pages 15-30.
    15. 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.
    16. Mariano Gallo & Mario Marinelli, 2020. "Sustainable Mobility: A Review of Possible Actions and Policies," Sustainability, MDPI, vol. 12(18), pages 1-39, September.
    17. 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.
    18. Schindler, Mirjam & Wang, Judith Y.T. & Connors, Richard D., 2021. "A two-stage residential location and transport mode choice model with exposure to traffic-induced air pollution," Journal of Transport Geography, Elsevier, vol. 93(C).

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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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