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Greener Fleet, Cleaner Air: How Low Emission Zones Reduce Pollution

Author

Listed:
  • Aydin, Eren

    (Hertie School of Governance)

  • Gehrsitz, Markus

    (University of Strathclyde)

  • Traxler, Christian

    (Hertie School of Governance)

Abstract

Using a stacked differences-in-differences approach, we study the effects of Low Emission Zones (LEZs) in Germany. The implementation of stage 1 and 2 LEZs, which banned the most pollution-intensive vehicles from city centers, significantly reduced PM10 concentrations. The most restrictive third stage had no detectable, additional effect. Analyzing the mechanisms behind these improvements, we find weak evidence of a 2% traffic decline inside LEZs. Exploiting novel data, our main results document small but precisely estimated effects on the local fleet composition: LEZs induced the replacement of 50,000 older, emission-intensive diesel vehicles with newer, less polluting gasoline cars. Our estimates suggest that LEZs had lower social costs than previously estimated.

Suggested Citation

  • Aydin, Eren & Gehrsitz, Markus & Traxler, Christian, 2024. "Greener Fleet, Cleaner Air: How Low Emission Zones Reduce Pollution," IZA Discussion Papers 17144, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17144
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    More about this item

    Keywords

    low emission zones; vehicle fleet composition; emission standards; social costs; diesel cars;
    All these keywords.

    JEL classification:

    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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