NATIONAL BUREAU OF ECONOMIC RESEARCH
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Congestion Pricing, Air Pollution and Children's Health

Emilia Simeonova, Janet Currie, Peter Nilsson, Reed Walker

NBER Working Paper No. 24410
Issued in March 2018, Revised in September 2019
NBER Program(s):The Program on Children, The Environment and Energy Program, The Health Care Program, The Health Economics Program, The Law and Economics Program

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.

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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.

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Document Object Identifier (DOI): 10.3386/w24410

 
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