Mohamed Bahlali

This paper develops a spatial equilibrium model to evaluate the general equilibrium effects of urban air quality policies, integrating commuting patterns, travel mode choice, location decisions, and the endogenous spatial distribution of pollution accounting for dispersion effects (advection and diffusion). Calibrated to the Île-de-France region, the model is used to assess the impact of the Grand Paris Low Emission Zone (LEZ). We show that the ban of thermic vehicles within the LEZ may induce substantial relocations of households and jobs, and that a "naive" model ignoring these general equilibrium effects overestimates the welfare cost of the policy.