Low Emission Zones and Environmental Justice

Abstract

We examine how the air quality benefits of low emission zones (LEZ) are distributed across ethnic and income groups in Germany. We combine gridded data on resident characteristics with high-resolution estimates of fine particle (PM2.5) concentrations. On average, we find that LEZs reduced traffic-related PM2.5 exposure by 8 percent in targeted areas and by 1.1 percent nationwide. But those benefits are distributed unequally because LEZs are non-randomly distributed across residents and because air quality improvements within LEZs are heterogeneous. We find larger benefits in areas that start out with higher pollution levels, that have lower income levels or that are less ethnically diverse. Consequently, non-Germans benefit disproportionately from the regulation nationwide, but Germans benefit relatively more within targeted areas. Across income deciles, benefits appear to be progressive (pro-poor). The results suggest nuanced environmental justice implications of LEZs which vary across cities and regional context within Germany. (With Bjoern Bos, Moritz Drupp)