The role of urban spatial structure and transportation costs on achieving successful vintage-specific restriction
Loading...
Date
2021
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
Pollution has been a recurring theme in recent times, mainly due to its unsustainable increase, and the multitude of health complications it generates. Discussions have
been focused on reducing vehicle pollution, as we can see from the 2018 vintage-specific
policy launched in Santiago, Chile, policy that places heavy restrictions on older polluting cars and lighter or no restrictions on newer vehicles. In this paper, we study
such vintage-specific restrictions using econometric analysis. We find a moderate effect
on the renewal of the vehicle fleet in the restricted area, reducing restricted vehicles
by 12 percentage points, reduction that is mainly driven by low and middle income
households. Moreover, both the econometric analysis and theoretical model find that
this policy only affects vehicles near to the policy discontinuity, in other words, the policy mainly displaces the newer restricted vehicles. Additionally, there is a considerable
fraction of these displaced vehicles that remain on the outskirts of the restricted city,
which at first seems evidence to the ineffectiveness of the policy in reducing contamination. Despite the latter, with help of the model we built, it can be argued that this
policy has been welfare increasing.
Description
Tesis (Magíster en Economía)--Pontificia Universidad Católica de Chile, 2021