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Is vehicle scrapping affected by low-emission zones? The case of Madrid
Abstract This paper provides an initial empirical evaluation of the possible impact a low-emission zone (LEZ) has on vehicle scrappage rates. The analysis is based on a quasi-experimental design, which is applied to the Spanish case known as Madrid Central. Our results, which are quite robust to reasonable changes in the geographic areas used as controls, reveal an excess of scrapping decisions by vehicle owners in the city of Madrid following the implementation of this urban policy. This excess scrapping is transitory and particularly notable for old vehicles subject to major traffic restrictions. The results suggest that establishing a LEZ in a relatively small area can generate some social gains, in terms of transport safety and removal of the vehicles that pollute the most, which may outweigh the simple benefit of improving air quality in the area.
Highlights The impact of creation of a low-emission zone (LEZ) on vehicle scrapping is evaluated. There is an excess of scrapped vehicles during the first two quarters after the LEZ. The scrapping rate is higher in vehicles that are not allowed to access the LEZ. The excess of scrapping is offset after one year from the LEZ. The social gains from LEZs are not limited to improving the air quality inside it.
Is vehicle scrapping affected by low-emission zones? The case of Madrid
Abstract This paper provides an initial empirical evaluation of the possible impact a low-emission zone (LEZ) has on vehicle scrappage rates. The analysis is based on a quasi-experimental design, which is applied to the Spanish case known as Madrid Central. Our results, which are quite robust to reasonable changes in the geographic areas used as controls, reveal an excess of scrapping decisions by vehicle owners in the city of Madrid following the implementation of this urban policy. This excess scrapping is transitory and particularly notable for old vehicles subject to major traffic restrictions. The results suggest that establishing a LEZ in a relatively small area can generate some social gains, in terms of transport safety and removal of the vehicles that pollute the most, which may outweigh the simple benefit of improving air quality in the area.
Highlights The impact of creation of a low-emission zone (LEZ) on vehicle scrapping is evaluated. There is an excess of scrapped vehicles during the first two quarters after the LEZ. The scrapping rate is higher in vehicles that are not allowed to access the LEZ. The excess of scrapping is offset after one year from the LEZ. The social gains from LEZs are not limited to improving the air quality inside it.
Is vehicle scrapping affected by low-emission zones? The case of Madrid
Balaguer, Jacint (author) / Pernías, José C. (author) / Ripollés, Jordi (author)
2023-03-23
Article (Journal)
Electronic Resource
English
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