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A formal test of the long-term environmental effects of road pricing in Milan

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  • Percoco, Marco

Abstract

Road pricing (the Ecopass) was introduced in Milan in January 2008 with the aim of reducing pollution. The existing literature has argued for a sizeable effect of the charge in reducing pollution in the short term, although long-term effects are less clear. This paper aims to propose a formal test of the impact of the Ecopass in the long term by using a novel methodology which combines regression discontinuity with propensity score matching. Results confirm the poor performance of the policy within 90 days to one year (depending on the pollutant) after introduction.

Suggested Citation

  • Percoco, Marco, 2021. "A formal test of the long-term environmental effects of road pricing in Milan," Research in Transportation Economics, Elsevier, vol. 85(C).
    • Handle: RePEc:eee:retrec:v:85:y:2021:i:c:s0739885920301499
    DOI: 10.1016/j.retrec.2020.100951
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    References listed on IDEAS

    as
    1. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    2. Percoco, Marco, 2014. "The effect of road pricing on traffic composition: Evidence from a natural experiment in Milan, Italy," Transport Policy, Elsevier, vol. 31(C), pages 55-60.
    3. Marco Percoco, 2015. "Heterogeneity in the reaction of traffic flows to road pricing: a synthetic control approach applied to Milan," Transportation, Springer, vol. 42(6), pages 1063-1079, November.
    4. Joshua D. Angrist & Miikka Rokkanen, 2015. "Wanna Get Away? Regression Discontinuity Estimation of Exam School Effects Away From the Cutoff," Journal of the American Statistical Association, Taylor & Francis Journals, vol. 110(512), pages 1331-1344, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Road pricing; Milan; Conditional independence; Regression discontinuity;
    All these keywords.

    JEL classification:

    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy

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