Low-emission Zones – a catalyst for improving transit infrastructure in cities
Working Paper
Improving air quality and avoiding pollution costs through low-emission zones: A case study of Chhatrapati Sambhajinagar, India
Chhatrapati Sambhajinagar (formerly Aurangabad), located in the western Indian state of Maharashtra, is one of 130 cities included under the government’s National Clean Air Programme (NCAP) due to its persistently poor air quality. Launched in 2019, the NCAP aims to tackle unhealthy levels of air pollution in Indian cities.
This paper models the potential impact of a low-emission zone (LEZ) on tailpipe emissions across Chhatrapati Sambhajinagar. LEZs are designated areas where older, more polluting vehicles are either restricted or charged a fee to enter, encouraging cleaner alternatives.
Our analysis shows that an LEZ could generate significant emission reductions in the Chhatrapati Sambhajinagar Municipal Corporation. Relative to a scenario in which no LEZ were implemented, an LEZ based on vehicle age yielded estimated reductions of up to 29% over 2026–2030 while an LEZ based on vehicle standard resulted in reductions of up to 13%.
The modeled LEZs also generated substantial economic savings by avoiding the social costs of air pollution. These avoided costs, which include adverse health effects, reduced crop yields, and biodiversity loss, ranged from ₹17.2 crores to ₹232.8 crores (US$2 million to US$27 million) depending on the LEZ’s size, the type of vehicle restrictions, and the level of compliance by vehicle owners.
Figure 1. Potential low-emission zone boundaries in the Chhatrapati Sambhajinagar Municipal Corporation
Notes: Option 1 includes Cannought Garden and CIDCO. Option 2 includes the areas in option 1 in addition to Aurangpura, Mill Corner, Paithan Gate, and Gulmandi.
Figure 2. Monetary valuation of an LEZ’s environmental benefits for 2026–2030 in Chhatrapati Sambhajinagar Municipal Corporation
Note: Values are rounded to the nearest digit.
The benefits of LEZs go beyond cleaner air. They also include reduced traffic congestion and improved public health as more people turn to active transport such as walking and cycling. There may also be direct economic gains in the form of increased property values and local business activity, driven by improved foot traffic in a cleaner and more livable urban environment.