Zero Fare, Cleaner Air? The Causal Effect of Luxembourg’s Free Public Transportation Policy on Transport Emissions

Read full text
Authors: Tobias Eibinger, Sachintha Fernando
Cited by: 1
References: 39

Abstract

Abstract In March 2020, Luxembourg became the first country to make public transport free. We use this unique setting to evaluate the policy’s impact on transport emissions using a synthetic difference-in-differences framework. We use spatial emissions data to construct a panel of NUTS 2 regions in the EU from 2016 to 2022. We estimate an average reduction of 5.9% in road transport CO 2 and overall road transport GHG emissions, with larger effects for NO x . These findings are robust against confounding shifts in working from home and commuting patterns, vehicle fleet electrification, and the localized effects of the COVID-19 pandemic. Complementary event-study evidence from automatic traffic counters and air quality stations through 2023 corroborates our findings and suggests larger effects on weekends.

Fields of Study & Subjects

COVID-19 impact on air quality Energy Environment Economic Growth COVID-19 epidemiological studies

Publication details

Journal / source
Environmental and Resource Economics
Publisher
Springer Science and Business Media LLC
Volume
89
Issue
7
Publication date
25 June 2026
Language
EN