Congestion pricing, air pollution, and individual-level behavioral responses

Elisabeth T. Isaksen () and Bjørn G. Johansen ()
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Elisabeth T. Isaksen: Ragnar Frisch Centre for Economic Research, Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway, https://sites.google.com/site/elisabethisaksen/
Bjørn G. Johansen: The Institute of Transport Economics, Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway, https://www.toi.no/ansatte/johansen-bjorn-gjerde-article31858-202.html

No 1/2021, Memorandum from Oslo University, Department of Economics

Abstract: This paper shows that differentiating driving costs by time of day and vehicle type help improve urban air quality, lower driving, and induce adoption of electric vehicles. By taking advantage of a congestion charge that imposed spatial and temporal variation in the cost of driving a conventional vehicle, we find that economic incentives lower traffic and concentrations of NO2. Exploiting a novel dataset on car ownership, we find that households exposed to congestion charging on their way to work were more likely to adopt an electric vehicle. Heterogeneity analyses show strong socioeconomic gradients in the transition towards low-emission cars.

Keywords: air pollution; electric vehicles; transportation policies; congestion charging (search for similar items in EconPapers)
JEL-codes: C33 H23 Q53 Q55 Q58 R41 R48 (search for similar items in EconPapers)
Pages: 100 pages
Date: 2021-05-04
New Economics Papers: this item is included in nep-ene, nep-env, nep-res, nep-tre and nep-ure
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