Scandinavian Working Papers in Economics
Working Papers in Economics,
University of Gothenburg, Department of Economics
No 572: Air Pollution Dynamics and the Need for Temporally Differentiated Road Pricing
Jessica Coria (), Jorge Bonilla (), Maria Grundström () and Håkan Pleijel ()
Additional contact information
Jessica Coria: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: P.O. Box 640, SE 40530 Gothenburg, Sweden
Jorge Bonilla: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: and Universidad de Los Andes, Bogotá, Colombia
Maria Grundström: Dept of Biological and Environmental Sciences, Postal: University of Gothenburg, Sweden
Håkan Pleijel: Dept of Biological and Environmental Sciences, Postal: University of Gothenburg, Sweden
Abstract: In this paper we investigate the effects of the temporal variation of pollution dispersion, traffic flows and vehicular emissions on pollution concentration and illustrate the need for temporally differentiated road pricing through an application to the case of the congestion charge in Stockholm, Sweden. By accounting explicitly for the role of pollution dispersion on optimal road pricing, we allow for a more comprehensive view of the economy-ecology interactions at stake, showing that price differentiation is an optimal response to the physical environment. Most congestion charges in place incorporate price bans to mitigate congestion. Our analysis indicates that, to ensure compliance with air quality standards, such price variations should also be a response to limited pollution dispersion.
Keywords: air pollution; road transportation; road pricing; assimilative capacity
26 pages, October 9, 2013
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