Keywords: air quality, congestion control, cost effectiveness, environmental economics, environmental management, urban sustainability, tradable permits, vehicle use, Mexico City, sustainable development, air pollution, environmental pollution, vehicle permits, vehicle emissions
Optimal restrictions on vehicle use for urban sustainability for Mexico City
This paper describes and develops the conditions that make the demand side policy of vehicle use restrictions part of a cost-effective set of environmental control policies. Mexico City's experience with vehicle use restrictions is described and its failure analysed. It is argued that Mexico City took a step in the right direction, but failed to make the restrictions flexible, thereby making the policy perverse. A programme of tradable vehicle use permits is presented and described that would provide the needed flexibility and promote urban sustainability.