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Did the London Congestion Charge Reduce Pollution?

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  • Colin Green
  • John Spencer Heywood
  • Maria Navarro Paniagua

Abstract

We examine the London congestion charge introduced in 2003 and demonstrate significant reductions in a number of pollutants relative to controls. We even find evidence of reductions per mile driven suggesting amelioration of a congestion externality. Yet, we find a robust countervailing increase in harmful NO2 likely reflecting the disproportionate share of diesel vehicles exempt from the congestion charge. This unintended consequence informs on-going concern about pollution from diesel based vehicles and provides a cautionary note regarding substitution effects implicit in congestion charging schemes.

Suggested Citation

  • Colin Green & John Spencer Heywood & Maria Navarro Paniagua, 2018. "Did the London Congestion Charge Reduce Pollution?," Working Papers 237385060, Lancaster University Management School, Economics Department.
    • Handle: RePEc:lan:wpaper:237385060
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    2. Fabio Bothner & Annette Elisabeth Töller & Paul Philipp Schnase, 2022. "Do Lawsuits by ENGOs Improve Environmental Quality? Results from the Field of Air Pollution Policy in Germany," Sustainability, MDPI, vol. 14(11), pages 1-18, May.
    3. Prieto-Rodriguez, Juan & Perez-Villadoniga, Maria J. & Salas, Rafael & Russo, Ana, 2022. "Impact of London Toxicity Charge and Ultra Low Emission Zone on NO2," Transport Policy, Elsevier, vol. 129(C), pages 237-247.
    4. Philipp Schrauth, 2022. "The Causal Effect of Cycling Infrastructure on Traffic and Accidents: Evidence from Pop-up Bike Lanes in Berlin," CEPA Discussion Papers 48, Center for Economic Policy Analysis.
    5. Shihe Fu & V. Brian Viard, 2022. "A mayors perspective on tackling air pollution," Chapters, in: Charles K.Y. Leung (ed.), Handbook of Real Estate and Macroeconomics, chapter 16, pages 413-437, Edward Elgar Publishing.
    6. Fu, Yifan & Zhong, Shiquan & Ling, Shuai & He, Zhengbing, 2024. "Closing the loophole of vehicle ownership restriction: The impact of non-local vehicle restriction on new vehicle registrations and air pollution," Transportation Research Part A: Policy and Practice, Elsevier, vol. 185(C).
    7. Pestel, Nico & Wozny, Florian, 2021. "Health effects of Low Emission Zones: Evidence from German hospitals," Journal of Environmental Economics and Management, Elsevier, vol. 109(C).
    8. Lana Krehic, 2022. "How do increases in electric vehicle use affect urban toll ring prices?," Public Choice, Springer, vol. 193(3), pages 187-209, December.
    9. Shuhei Nishitateno & Paul J. Burke, 2024. "Effects of Low Emission Zones on Air Quality, New Vehicle Registrations, and Birthweights: Evidence from Japan," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(7), pages 1955-1992, July.
    10. Boggiano, Barbara & Williams Higgins, Melisa & Matheson, Jesse & Jenkins, David & Oggioni, Marco R., 2024. "The contemporaneous healthcare cost of particulate matter pollution for youth and older adult populations," Journal of Environmental Economics and Management, Elsevier, vol. 125(C).
    11. Tang, Cheng Keat, 2021. "The Cost of Traffic: Evidence from the London Congestion Charge," Journal of Urban Economics, Elsevier, vol. 121(C).
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    14. Lehe, Lewis J. & Devunuri, Saipraneeth, 2022. "Large Elasticity at Introduction," Research in Transportation Economics, Elsevier, vol. 95(C).
    15. Beshir, H.A.; & Fichera, E.;, 2022. "“And Breathe Normally†: The Low Emission Zone impacts on health and well-being in England," Health, Econometrics and Data Group (HEDG) Working Papers 22/09, HEDG, c/o Department of Economics, University of York.
    16. Duarte, Rosa & García-Riazuelo, Álvaro & Sáez, Luis Antonio & Sarasa, Cristina, 2022. "Economic and territorial integration of renewables in rural areas: Lessons from a long-term perspective," Energy Economics, Elsevier, vol. 110(C).

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    More about this item

    Keywords

    Pollution; Traffic; Congestion Charging;
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
    • H27 - Public Economics - - Taxation, Subsidies, and Revenue - - - Other Sources of Revenue

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