VOX  CEPR Policy Portal

Traffic congestion is a major problem for urban centres. Among various negative externalities, traffic creates substantial pollution which can impact the health of residents. This column explores how the implementation of a congestion pricing zone affected the health of children in Stockholm. The programme saw short-term reductions in common traffic pollutants and an accompanying decrease in children’s hospital visits for acute asthma. This decrease grew larger the longer the tax was in place.