Working Paper: CEPR ID: DP9335
Authors: Rafael Lalive; Simon Luechinger; Armin Schmutzler
Abstract: Many governments subsidize regional rail service as an alternative to road traffic. This paper assesses whether increases in service frequency reduce road traffic externalities. We exploit differences in service frequency growth by procurement mode following a railway reform in Germany to address endogeneity of service growth. Increases in service frequency reduce the number of severe road traffic accidents, carbon monoxide, nitrogen monoxide, nitrogen dioxide pollution and infant mortality. Placebo regressions with sulfur dioxide and ozone yield no effect. Service frequency growth between 1994 and 2004 improves environmental quality by an amount that is worth approximately 28-40 % of total subsidies. An analysis of household behavior shows that the effects of railway services on outcome variables are driven by substitution from road to rail.
Keywords: pollution; public transport; railways; road accidents
JEL Codes: Q53; R41; R48
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Increased railway service frequency (L92) | Reduction in severe road traffic accidents (R48) |
| Increased railway service frequency (L92) | Reduction in nitrogen monoxide (NO) concentrations (Q53) |
| Increased railway service frequency (L92) | Reduction in nitrogen dioxide (NO2) concentrations (Q53) |
| Increased railway service frequency (L92) | Reduction in infant mortality rates (J13) |