Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/302661 
Year of Publication: 
2024
Series/Report no.: 
IZA Discussion Papers No. 17144
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
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 stage had no detectable, additional effect. Analyzing the mechanisms behind these improvements, we find weak evidence of a 2% traffic decline inside LEZs. Exploiting novel data, our main results document small but precisely estimated effects on the local fleet composition: LEZs induced the replacement of 50,000 older, emission-intensive diesel vehicles with newer, less polluting gasoline cars. Our estimates suggest that LEZs had lower social costs than previously estimated.
Subjects: 
low emission zones
vehicle fleet composition
emission standards
social costs
diesel cars
JEL: 
Q52
Q53
Q58
R40
Document Type: 
Working Paper

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