Motorised individual transport strongly contributes to global CO2 emissions, due to its intensive usage of fossil fuels. Current political efforts addressing this issue (i.e. emission performance standards in the EU) are directed towards car manufacturers. Concretely, the whole car industry has...

Electric vehicles (EV) and other so-called low emission vehicles (LEV) are promoted as means to reduce Greenhouse Gas emissions. Economists routinely assess the corresponding saving in emissions by considering that EV emit only “in the power plant”, based on the technological features of the...

In order to improve air quality mainly in the urban environment, emissions from passenger cars and light duty vehicles have in the past been limited to some extent (EURO III/IV in Europe). The always pressing need to optimise health related problems arising from the inhalation of toxic...

Transport sector policies already contribute to moderating greenhouse gas emissions from road vehicles. They are increasingly designed to contribute to overall societal targets to mitigate climate change. While abatement costs in transport are relatively high, there are plausible arguments in...

Using a stacked differences-in-differences approach, we study the effects of Low Emission Zones (LEZs) in Germany. The implementation of stage 1 and 2 LEZs, which banned the most pollution-intensive vehicles from city centers, significantly reduced PM10 concentrations. The most restrictive third...

Firms sometimes comply with externality-correcting policies by gaming the measure that determines policy. We show theoretically that such gaming can benefit consumers, even when it induces them to make mistakes, because gaming leads to lower prices by reducing costs. We use our insights to...