The effects of road pricing on driver behavior and air pollution

descriptionPublicationkeyboard_double_arrow_right Article , Preprint 01 Sep 2015 English Publisher:Elsevier BVJournal:Journal of Urban Economics, volume 89, pages 62-73 (issn: 0094-1190,

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Authors: uploaded via Dissemin; Matthew Gibson; Maria Carnovale;

doi: 10.1016/j.jue.2015.06.005 , 10.31219/osf.io/u6zem , 10.17605/osf.io/u6zem

The effects of road pricing on driver behavior and air pollution

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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.

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Keywords

road pricing, traffic policy, air pollution, [SHS.ECO] Humanities and Social Sciences/Economics and Finance, Social and Behavioral Sciences

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