The effect of remote work on urban transportation emissions: Evidence from 141 cities

Abstract

The overall impact of working from home (WFH) on transportation emissions remains a complex issue, with significant implications for policymaking. This study matches socioeconomic information from American Community Survey (ACS) to the global carbon emissions dataset for selected Metropolitan Statistical Areas (MSAs) in the US. We analyze the impact of WFH on transportation emissions before and during the COVID-19 pandemic. Employing cross-sectional multiple regression models and Blinder-Oaxaca decomposition, we examine how WFH, commuting mode, and car ownership influence transportation emissions across 141 MSAs in the United States. We find that the prevalence of WFH in 2021 is associated with lower transportation emissions, whereas WFH in 2019 did not significantly impact transportation emissions. After controlling for public transportation usage and car ownership, we find that a 1% increase in WFH corresponds to a 0.17 kg or 1.8% reduction of daily average transportation emissions per capita. The Blinder-Oaxaca decomposition shows that WFH is the main driver in reducing transportation emissions per capita during the pandemic. Our results show that the reductive influence of public transportation on transportation emissions has declined, while the impact of car ownership on increasing transportation emissions has risen. This study underscores the need for a nuanced, data-driven approach in crafting WFH policies to mitigate transportation emissions effectively. This study contributes to the policy debate by advocating for WFH as a strategy to reduce transportation emissions. Concurrently, policymakers can mitigate its unintended consequences by promoting public transportation and encouraging the adoption of environmentally friendly commute modes.