Policy Briefs
Reducing Air Pollution in Cairo: Raise User Costs and Invest In Public Transit
No.
12
Date
May, 2016
Topic
Q5. Environmental Economics
In a nutshell
- Vehicle exhaust fumes are a major cause of air pollution in developing world megacities, such as Cairo.
- Egyptian authorities have taken measures to reduce emission rates for existing vehicles and change relative user costs using policies that are consistent with research findings on the appropriate economic instruments for controlling air pollution
- Research into the impact of the measures shows that the period after they were implemented was associated with a reduction of about 3% in the concentration of suspended particulate matter.
- Other instruments can be considered, such as congestion charges; economic instruments, such as taxes or subsidies; and regulatory instruments such as emission standards.
- The development of a mass transit system as a viable transport mode is essential to providing individuals with an alternative to motor vehicles when policies increase the user cost of the latter.
