The Effects of Road Pricing on Driver Behavior and Air Pollution

Matthew Gibson and Maria Carnovale
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Maria Carnovale: Duke University, http://sanford.duke.edu/

No 2015-16, Department of Economics Working Papers from Department of Economics, Williams College

Abstract: Exploiting the natural experiment created by an unanticipated court injunction, we evaluate driver responses to road pricing. We find evidence of intertemporal substitution toward unpriced times and spatial substitution toward unpriced roads. The effect on traffic volume varies with public transit availability. Net of these responses, Milan's pricing policy reduces air pollution substantially, generating large welfare gains. In addition, we use long-run policy changes to estimate price elasticities.

Keywords: road pricing; traffic policy; air pollution (search for similar items in EconPapers)
Pages: 41 pages
Date: 2015-05
New Economics Papers: this item is included in nep-ene, nep-env, nep-ger, nep-reg, nep-tre and nep-ure
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Forthcoming in the Journal of Urban Economics.

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Related works:
Journal Article: The effects of road pricing on driver behavior and air pollution (2015)
Working Paper: The effects of road pricing on driver behavior and air pollution (2015)
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