Price versus quantity measures to deal with pollution and congestion in urban areas: A political economy approach

Xavier Fageda, Ricardo Flores-Fillol and Bernd Theilen ()

Journal of Environmental Economics and Management, 2022, vol. 115, issue C

Abstract: Pollution and congestion in urban areas are serious externalities that can be mitigated through the adoption of either price- or quantity-based mechanisms. While price restrictions are occasionally applied, quantity constraints based on car vintage are becoming increasingly popular. Our model provides a comprehensive analysis that explains this prevalence of quantity over price schemes. We also elucidate some other stylized facts observed in urban areas applying traffic restrictions, such as the implementation of hybrid price-and-quantity systems, the use of trial periods, the commitment to invest in public transit to enhance the acceptability of urban tolls, and the concentration of quantity restrictions in high-income cities.

Keywords: Pollution; Congestion; Price-based traffic restrictions; Quantity-based traffic restrictions; Urban areas (search for similar items in EconPapers)
JEL-codes: D62 H23 L92 R41 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0095069622000778
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jeeman:v:115:y:2022:i:c:s0095069622000778

DOI: 10.1016/j.jeem.2022.102719

Access Statistics for this article

Journal of Environmental Economics and Management is currently edited by M.A. Cole, A. Lange, D.J. Phaneuf, D. Popp, M.J. Roberts, M.D. Smith, C. Timmins, Q. Weninger and A.J. Yates

More articles in Journal of Environmental Economics and Management from Elsevier
Bibliographic data for series maintained by Catherine Liu ().