News

Economists' report: Emission restrictions would accelerate the electrification of Helsinki's car fleet

Achieving Helsinki's carbon neutrality goal requires new impactful measures. According to the recent study by Aalto University's economics working group, areas with CO2 emission-free transportation would be an efficient way to reduce emissions in Helsinki's transportation sector. A sufficient transition period would be a prerequisite for success
Cars driving on the highway at night
Photo: Aalto University / Roope Kiviranta

The city of Helsinki has set strict targets for emissions generated by transportation in the Helsinki area. It commissioned a study from Aalto University's economics research group to investigate how emission restriction zones and regional bans on vehicles producing climate emissions would affect different car owners.

‘A conceptual assessment shows that a decision to establish a CO2 emission-free transportation zone with a sufficiently long transition period would be almost market-driven and therefore an efficient way to achieve the set goal’, says Professor of Economics Matti Liski, who led the research group.

The quantitative part of the study examined Helsinki's car fleet, its development, and car owners and holders. The study confirmed the notion that car ownership in Helsinki is skewed towards high-income individuals, who are also the most active buyers of electric cars.

The study also indicated that the electrification of the car fleet in Helsinki is accelerating. Although currently only about three percent of cars are electric, at the current pace, this share could rise to over 40 percent by 2030. By 2035, the share could reach 65 percent.

‘Helsinki's car fleet is already undergoing rapid electrification, and achieving Helsinki's goal does not appear impossible. However, effective policy tools are needed if we are to reach the targets’, Professor Liski concludes.

Read more:

Report Towards emission-free transportation (in Finnish) on the Aalto Economic Institute (AEI) webpage

More information:

  • Published:
  • Updated:

Read more news

A serene Japanese garden with a pond, rocks, and various trees, including vibrant red and green foliage.
Press releases Published:

What makes nature restorative? Aalto University researchers explore Finnish forests and Japanese gardens

Biodiversity is central to the restorative power of Finnish forests.
Room with multiple speakers mounted on metal frames in a circular arrangement. A stool and a grid platform are in the center.
Press releases Published:

New technology brings immersive audio to everyone’s pockets

A new type of sound recording technology allows recording of immersive soundscapes with ordinary microphones and an inexpensive accessory
A group of people walking past large windows in a modern building with vertical wooden slats and indoor lights.
Research & Art Published:

Funding for a democratic transition to sustainability

Three projects from Aalto University are among the recipients. The Nessling Foundation's grants aim to advance the implementation of sustainability transitions in the context of democracy, the EU, and nature conservation areas.
Siavash Khajavi wearing glasses and a light blue shirt, standing indoors with a window in the background.
Research & Art Published:

A community where personal connections and career paths intertwine

Assistant professor of operations management Siavash Khajavi explains how studying Industrial Engineering and Management helps students develop hard skills through rigorous studies and soft skills through countless interactions and collaboration.