Keep Your Clunker in the Suburb: Low‐Emission Zones and Adoption of Green Vehicles

32 Pages Posted: 29 Jul 2014

See all articles by Hendrik Wolff

Hendrik Wolff

University of Washington - Department of Economics; IZA Institute of Labor Economics

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Date Written: August 2014

Abstract

Spatial distribution and leakage effects are of policy concern and increasingly discussed in the economics literature. We study Europe's most aggressive recent air pollution regulation: low‐emission zones (LEZs) are areas in which vehicular access is allowed only to vehicles that emit low levels of PM. Using new administrative data sets from Germany, we assess the effect of LEZs on air pollution and the spatial substitution effects in green versus dirty vehicles. Back of the envelope calculations suggest that health benefits of roughly 2 billion dollars have come at a cost of 1 billion dollars for upgrading the fleet of vehicles.

Suggested Citation

Wolff, Hendrik, Keep Your Clunker in the Suburb: Low‐Emission Zones and Adoption of Green Vehicles (August 2014). The Economic Journal, Vol. 124, Issue 578, pp. F481-F512, 2014, Available at SSRN: https://ssrn.com/abstract=2473318 or http://dx.doi.org/10.1111/ecoj.12091

Hendrik Wolff (Contact Author)

University of Washington - Department of Economics

Box 353330
Seattle, WA 98195-3330
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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