Isaksen, Elisabeth 
ORCID: 0000-0002-6557-8001 and Johansen, Bjørn G.
(2021)
Congestion pricing, air pollution, and individual-level behavioural responses.
Grantham Research Institute on Climate Change and the Environment Working Paper (362).
Grantham Research Institute on Climate Change and the Environment, London School of Economics and Political Science, London, UK.
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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.
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