Scandinavian Working Papers in Economics

Discussion Paper Series in Economics,
Norwegian School of Economics, Department of Economics

No 17/2019: Going Fast or Going Green? Evidence from Environmental Speed Limits in Norway

Ingrid Kristine Folgerø, Torfinn Harding () and Benjamin S. Westby
Additional contact information
Ingrid Kristine Folgerø: Dept. of Economics, Norwegian School of Economics and Business Administration
Torfinn Harding: Dept. of Economics, Norwegian School of Economics and Business Administration, Postal: NHH, Department of Economics, Helleveien 30, N-5045 Bergen, Norway
Benjamin S. Westby: Dept. of Economics, Norwegian School of Economics and Business Administration

Abstract: This paper studies the impact of speed limits on local air pollution using a series of datespecific speed limit reductions in Oslo over the 2004-2011 period. We find that lowering the speed limit from 80 to 60 km/h reduces travel speed by 5.8 km/h. However, we find no evidence of reduced air pollution as measured next to the treated roads. Our estimates suggest an annual time loss of the speed limit reductions of 55 USD per affected vehicle. Our findings imply that policy makers need to consider other actions than speed limit reductions to improve local air quality.

Keywords: Temporary speed limit; air pollution; travel time; cost-benefit; regression discontinuity design

JEL-codes: H23; Q53; Q58; R41

33 pages, First version: October 3, 2017. Revised: October 3, 2019. Earlier revisions: October 3, 2019.

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