Impacts of low emission zones on sick leave and mental well-being

Journal article record
Title	"And Breathe Normally": Impacts of low emission zones on sick leave and mental well-being
Journal	Journal of Economic Behavior and Organization‎ vol. 234 no. 106994
Abstract	Air pollution poses a global concern due to its detrimental effects on climate, healthcare, and human capital accumulation. However, there is limited evidence on the health and human capital impacts of clean air transport policies. This study investigates the effects of London’s Low Emission Zone (LEZ) and Ultra-Low Emission Zone (ULEZ) on air quality, sick leave, well-being, and physical health. By exploiting the temporal and spatial variations of these policies – implemented in Greater London (LEZ) in 2008 and Central London (ULEZ) in 2019 – we implement a difference-in-differences approach utilising linked survey and administrative data. We show that the LEZ and ULEZ policies significantly reduced PM10 and NO2 levels. Consequently, we observe substantial improvements in labour productivity, with sick leave reduced by 18.5% from pre-LEZ levels. The ULEZ contributed to enhanced mental well-being, as evidenced by increased feelings of happiness, worthiness and satisfaction, along with a reduction in anxiety. These effects are further supported by improvements in physical health, with the LEZ reducing the incidence of long-term health conditions by 6.8% and respiratory issues by 10.2%. A back-of-the-envelope cost–benefit analysis suggests that the policies generated savings exceeding £37 million per year for the overall population.
Authors	Habtamu Ali Beshir‎ Eleonora Fichera‎
Date	June 2025‎
Keywords and locations
Keywords	Air pollution‎ Health‎
Locations	London‎
How to find and cite this journal article
Publication	10.1016/j.jebo.2025.106994
Access	This journal article is open access and can be read for free as of 24 April 2025.
Citation	Beshir, H. A., & Fichera, E. (2025). “And Breathe Normally”: Impacts of low emission zones on sick leave and mental well-being. Journal of Economic Behavior & Organization, 234, 106994.