The Impact of The Pico Y Placa Policy On Fine Particulate Matter In Lima, Peru

Lima has been ranked among the top most polluted cities in the Americas. Vehicular emissions are the dominant source of pollution in the city. In order to reduce congestion and pollution levels during the XVIII Pan- and Parapan-American Games, Lima government officials enacted the pico y placa policy to restrict the number of vehicles on certain heavily trafficked roads in the city at rush hours between Monday to Thursday based on the last digit of their license plates. This policy was retained after the Games. In this paper we evaluate the impact of this policy on fine particulate matter concentration levels (PM2.5) at a background site in the city using a difference-in-difference approach. We find that the policy resulted in increases on PM2.5 levels on Monday-Thursday compared to Friday-Sunday levels after the policy was enacted, compared to previous years. However, such an increase was not significant. These results suggest the need for additional policies to reduce pollution due to traffic in Lima. It also suggests the need to track the response to this policy over time to evaluate its efficacy.