Congestion Pricing, Air Pollution and Children's Health

Abstract

This study examines the effects of implementing a congestion tax in central Stockholm on both ambient air pollution and the population health of local children. We demonstrate that the tax reduced ambient air pollution by 5 to 10 percent, and this reduction in air pollution was associated with a significant decrease in the rate of acute asthma attacks among young children. The change in health was more gradual than the change in pollution suggesting that it may take time for the full health effects of changes in pollution to be felt. Given the sluggish adjustment of health to pollution changes, short-run estimates of the pollution reduction programs may understate the long-run health benefits.