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  • LondonCongestionCharge

    Rights statement: This is the author’s version of a work that was accepted for publication in Regional Science and Urban Economics. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Regional Science and Urban Economics, 84, 2020 DOI: 10.1016/j.regsciurbeco.2020.103573

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Did the London Congestion Charge Reduce Pollution?

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Article number103573
<mark>Journal publication date</mark>1/09/2020
<mark>Journal</mark>Regional Science and Urban Economics
Volume84
Number of pages14
Publication StatusPublished
Early online date10/08/20
<mark>Original language</mark>English

Abstract

Recent vehicle charging schemes aim to reduce pollution and other congestion externalities. We reexamine the London congestion charge introduced in 2003 and demonstrate significant reductions in several pollutants relative to controls. We even find evidence of reductions per mile driven suggesting amelioration of a congestion externality. Yet, we find a more robust countervailing increase in harmful NO2 likely reflecting the disproportionate share of diesel vehicles exempt from the congestion charge. This unintended consequence informs on-going concern about pollution from diesel-based vehicles and provides a cautionary note regarding substitution effects implicit in many congestion charging schemes.

Bibliographic note

This is the author’s version of a work that was accepted for publication in Regional Science and Urban Economics. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Regional Science and Urban Economics, 84, 2020 DOI: 10.1016/j.regsciurbeco.2020.103573