Stranded to be? Diesel ban and used car markets
Quentin Hoarau  1@  , Edouard Civel  2, 3@  
1 : Université Paris-Sud
Université Paris-Sud - Université Paris-Saclay
2 : Chaire économie du climat
Chaire économie du climat
Chaire Economie du Climat Palais Brongniart, 4e étage 28 place de la Bourse 75002 Paris -  France
3 : EconomiX
Université Paris Nanterre : UMR7235, Centre National de la Recherche Scientifique : UMR7235
Bâtiment G200 Avenue de la République92001 NANTERRE CEDEX -  France

After promoting their development for two decades, European governments are pulling back their support to diesel cars. While those engines were supposed to be cleaner than gasoline ones, by consuming less and emitting less CO2, their emissions of local air pollutants are much higher. In response to increasing awareness on air quality, Low Emissions Zones (LEZs) are gradually implemented by some cities, announcing a progressive ban on diesel cars which could also turn those vehicles into stranded assets for households. This is a thorny issue in France where 50% of vehicles are diesel-fueled. Investigating nearly a million of used cars ads across France, we find that diesel vehicle sellers located within ongoing and planned LEZs anticipate this change of regulation and lower their asking price for those cars. This effect is robust to the introduction of an air pollution indicator for cities.

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