This paper estimates the economic benefits from reduced asthma problems among pre-school children caused by the Stockholm congestion charging (SCC) scheme. From previous epidemiological studies, it has been found that there is a positive correlation between reduced emissions from car and improvement of asthma prevalence. The paper focuses on densely populated inner-city Stockholm where people, especially children, are supposed to be highly exposed to air-borne pollution. Since traffic emissions has been reduced significantly in inner-city Stockholm as a result of introducing SCC scheme, and...