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Air pollution dynamics and the need for temporally differentiated road pricing
Institution:1. Department of Economics, University of Gothenburg, P.O. Box 640, SE 405 30 Gothenburg, Sweden;2. Department of Economics, Universidad de Los Andes, Bogotá, Colombia;3. Department of Biological and Environmental Sciences, University of Gothenburg, Sweden;1. Institute of Transport Studies, Department of Civil Engineering, Monash University, Room 126, Building 69, Wellington Road, Clayton, Victoria 3800, Australia;2. Kharazmi University, P.O. Box: 15614, Tehran, Iran;1. Department of Civil Engineering and Surveying, University of Puerto Rico, Mayagüez, Mayagüez 00680, Puerto Rico;2. Department of Civil Engineering, The City College of New York, New York, NY 10031, USA;1. Departamento de Economía, Facultad de Economía y Empresa, Avenida del Cristo s/n, 33006 Oviedo, Spain;2. Departamento de Economía Aplicada, Facultad de Economía y Empresa, Avenida del Cristo s/n, 33006 Oviedo, Spain;1. Department of Civil and Environmental Engineering, The Hong Kong University of Science and Technology, Clear Water Bay, Kowloon, Hong Kong;2. Urban Transport Systems Laboratory (LUTS), École Polytechnique Fédérale de Lausanne (EPFL), Switzerland;3. Department of Civil and Coastal Engineering, University of Florida, 365 Weil Hall, Gainesville, FL 32611, USA;1. Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance, Melbourne Burwood Campus, 221 Burwood Highway, VIC 3125, Australia;2. Maastricht University, The Netherlands;3. University of Gothenburg, Sweden;4. Universidad de los Andes, Colombia;1. Business School, Sun Yat-sen University, Bldg 388, 135 Xingangxi Rd, Guangzhou 510275, China;2. Civil & Environmental Engineering, University of Maryland, College Park, MD 20742, United States;3. School of Management, Huazhong University of Science and Technology, Wuhan 430074, China
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 bands 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
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