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Reduced sick leave among the benefits of London’s ULEZ

A team from the University of Bath has found that the progressive improvements to London’s air quality by the introduction of increasingly stringent restrictions on vehicles, has led to a notable drop in sick leave and led to annual health savings of £37m.

More than 10 years of data was analysed to establish the respective benefits of Greater London’s Low Emission Zone and the subsequent Ultra Low Emission Zone.

In the first instance the team from the University’s Department of Economics examined the improvement to air quality. They found that when London’s Low Emission Zone moved to phase 2 in July 2008,  NO₂ levels fell by 5.8% and PM10 by 9.7%. This phase applied to lorries over 3.5 tonnes, buses and coaches.

Following the ULEZ being introduced in Central London in April 2019 pollution fell even more dramatically, NO₂ by 21% and PM10 by 15%. 

These figures were estimated by comparing Central London to other areas outside Greater London, before and after ULEZ was introduced.

Another aim of the study was to find out if improved air quality led to improvements in people’s work productivity, health, and overall well-being.

To do this, the team referred to the Quarterly Labour Force Survey and the Annual Population Survey (APS) which, between them, include questions about jobs, education, income, health and how people feel about their lives in terms of happiness and anxiety.

It was found that, following the 2008 LEZ, there was a 6.8% drop in general health issues and a 10.2% decrease in respiratory problems. As a consequence people became 18.5% less likely to take sick leave.

The Ultra Low Emission Zone (ULEZ) has also made a positive difference. People working in Central London reported feeling slightly happier, more satisfied, and that their lives felt more worthwhile—rising by 1.8%, 2.1%, and 1.9%, respectively. Anxiety levels dropped by 11% compared to before the ULEZ was introduced.

The report concludes: ‘Overall, it appears that improvements in air quality have contributed to better physical health, which in turn has led to reduced sick leave and enhanced mental well-being. These effects are non-linear, being stronger when these clean air transport policies are more stringent, resulting in greater air quality improvements.

‘Using a back-of-the-envelope approach on our in-sample estimates of the physical health and productivity impacts, we have found that LEZ leads to just over £37M savings per year for the overall population.’

Professor Eleonora Fichera from the University’s Department of Economics and Centre for 21st Century Public Health said: ‘These policies are not just environmental wins. They’re also reducing labour market absenteeism and improving Londoners’ life satisfaction. Clean air makes for healthier, happier, more productive communities.’

Dr Habtamu Beshir, who led the research at the University of Bath and is now based at UCL said: ‘Our work shows that clean air policy is smart policy. It protects health, saves money, and enhances quality of life – making the case for clean air initiatives stronger than ever.’

The full research can be read here.

Paul Day
Paul is the editor of Public Sector News.
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