 On the geography of vintage-specific restrictionsCarlos Fardella, Nano Barahona, Juan-Pablo Montero and Felipe Sepúlveda Resource and Energy Economics, 2023, vol. 75, issue C Abstract: Persistent air-pollution problems have led authorities in many cities around the world to impose limits on car use by means of vintage-specific restrictions or low-emission zones. Any vintage restriction must establish not only the cars that face a restriction but also its geographic area of application. As a result of the restriction, a fraction of restricted cars are exported outside the restricted area. Because restricted cars become cheaper, emissions in the restricted area could increase if exported cars remain too close to it. The extent to which such emissions leakage can occur crucially depends on transaction costs in the car market. We study this possibility with a model of the car market that allows for transaction costs and data from Santiago’s 2017 vintage restriction. We fail to find emissions leakage, at least severe enough to undo the 2017 policy effects. Interestingly, transaction costs are shown to have a non-monotonic impact on emissions, and hence, on welfare. Keywords: Air quality; Driving restrictions; Low emission zones (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:resene:v:75:y:2023:i:c:s092876552300060x DOI: 10.1016/j.reseneeco.2023.101405 Access Statistics for this article Resource and Energy Economics is currently edited by J. F. Shogren and S. Smulders More articles in Resource and Energy Economics from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.