Congestion Pricing, Air Pollution and Children's Health

NBER Working Paper No. 24410

Issued in March 2018, Revised in September 2019

NBER Program(s):Children, Environment and Energy Economics, Health Care, Health Economics, Law and Economics



This study examines the effects of a congestion tax in central Stockholm on ambient air pollution and the health of local children. We demonstrate that the tax reduced ambient air pollution by 5–15 percent and the rate of acute asthma attacks among young children. We do not see corresponding changes in accidents or hospitalizations for nonrespiratory conditions. As the change in health was more gradual than the change in pollution, it may take time for the full health effects of changes in pollution to materialize if the mechanism is pollution. Hence, short-run estimates of pollution reduction programs may understate long-run health benefits.

A non-technical summary of this paper is available in the 2018 number 2 issue of the NBER Bulletin on Aging and Health. You can sign up to receive the NBER Bulletin on Aging and Health by email.



Acknowledgments

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Document Object Identifier (DOI): 10.3386/w24410