Going Fast or Going Green? Evidence from Environmental Speed Limits in Norway BY Ingrid Kristine Folgerø, Torfinn Harding and Benjamin S. Westby DISCUSSION PAPER Institutt for samfunnsøkonomi Department of Economics SAM 17/2019 ISSN: 0804-6824 October 2019 This series consists of papers with limited circulation, intended to stimulate discussion. Going Fast or Going Green? Evidence from Environmental Speed Limits in Norway Ingrid Kristine Folgerø, Torfinn Harding and Benjamin S. Westby* 3 October 2019 Abstract This paper studies the impact of speed limits on local air pollution using a series of date- specific speed limit reductions in Oslo over the 2004-2011 period. We find that lowering the speed limit from 80 to 60 km/h reduces travel speed by 5.8 km/h. However, we find no evidence of reduced air pollution as measured next to the treated roads. Our estimates suggest an annual time loss of the speed limit reductions of 55 USD per affected vehicle. Our findings imply that policy makers need to consider other actions than speed limit reductions to improve local air quality. JEL classification: H23, Q53, Q58, R41 Keywords: temporary speed limit, air pollution, travel time, cost-benefit, regression discontinuity design * NHH Norwegian School of Economics, Helleveien 30, 5045 Bergen, Norway,
[email protected]. We would like to thank Rune Elvik for information about traffic and accidents, the Municipality of Oslo, the Norwegian Public Road Administration, the Norwegian Institute for Air Research and the Norwegian Meteorological Institute for access to data and generous information sharing. Lassi Ahlvik, Po Yin Wong and Jørgen Juel Andersen provided helpful comments.