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

Elisabeth Isaksen and Bjørn G. Johansen

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

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. We document strong heterogeneous patterns of electric vehicle adoption along several socioeconomic dimensions, including household type, income, age, education, work distance and public transit quality.

Keywords: air pollution; electric vehicles; transportation policies; congestion charging; Centre for Climate Change Economics and Policy; 267942; 302059; 295789 (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: 2021-06-07
New Economics Papers: this item is included in nep-ene, nep-env, nep-isf, nep-res, nep-tre and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:111493

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