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

106 Pages Posted: 23 Apr 2021 Last revised: 5 Nov 2023

See all articles by Elisabeth Thuestad Isaksen

Elisabeth Thuestad Isaksen

University of Oslo - Ragnar Frisch Centre for Economic Research

Bjørn Gjerde Johansen

Institute of Transport Economics

Date Written: April 22, 2021

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: electric vehicles, air pollution, transportation policies, congestion charging

JEL Classification: H23, Q52, Q53, Q55, Q58, R41, R48

Suggested Citation

Isaksen, Elisabeth Thuestad and Johansen, Bjørn Gjerde, Congestion pricing, air pollution, and individual-level behavioral responses (April 22, 2021). Available at SSRN: https://ssrn.com/abstract=3832230 or http://dx.doi.org/10.2139/ssrn.3832230

Elisabeth Thuestad Isaksen

University of Oslo - Ragnar Frisch Centre for Economic Research ( email )

Gaustadalleen 21
N-0317 Oslo
Norway

Bjørn Gjerde Johansen (Contact Author)

Institute of Transport Economics ( email )

NO-0349
Oslo
Norway

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