Going fast or going green? Evidence from environmental speed limits in Norway

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 66 USD per affected vehicle. Our findings imply that policy makers need to consider other actions than speed limit reductions to improve local air quality.