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Zheng is a 2016/17 PhD candidate in Economics at University of Connecticut. 

Subject Areas: Environmental Economics, Public Policy Analysis

Job Market Paper: New Findings on the Effect of Mexico City's Driving Restriction on Air Pollution

Abstract: Studies using time-series regression discontinuity (RD) find no effect of Mexico City’s driving restriction, while studies using difference-in-differences (DD) methods have shown the effectiveness of similar restrictions in other cities. An explanation that has been offered is that households responded to the policy by purchasing a second car. However, these previous results from time-series RD are sensitive to different orders of polynomial time trends with respect to time windows. In addition, counter-evidence has shown that there was no increase in two-car households. Using a DD method with unrestricted days as a control, this study finds that Mexico City’s program led to a 3 to 5 percent significant reduction in Carbon Monoxide (CO) concentrations for all hours of the day and an 11 to 18 percent reduction during rush hours four years after the program. This finding reconciles conflicting signs in the driving restrictions’ literature.

Major Advisor: Kathleen Segerson