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The effect of road pricing on traffic composition: Evidence from a natural experiment in Milan, Italy

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  • Percoco, Marco

Abstract

This paper aims to estimate the effect of road pricing on the composition of traffic. By considering the case of Milan, where a charge to enter the city centre was introduced in 2008, and by relying on an unexpected and temporary suspension of the tax, we analyse the effect of the policy on flows of vehicles classified by type of engine. We have found that a road pricing scheme shifted users from Euro 0–3 vehicles (i.e., those vehicles particularly polluting according to the European Emission Standards classification and produced before 2000–2001) to liquefied petroleum gas, bi-fuel and hybrid vehicles. However, the environmental benefits of the policy were limited by a substantial increase in the usage of motorbikes. This evidence calls for a consideration of the behavioural reactions of road users when making ex ante evaluations of the social profitability of road pricing schemes.

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  • 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.
    • Handle: RePEc:eee:trapol:v:31:y:2014:i:c:p:55-60
    DOI: 10.1016/j.tranpol.2013.12.001
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    3. Paolo Maranzano & Alessandro Fassò & Matteo Pelagatti & Manfred Mudelsee, 2020. "Statistical Modeling of the Early-Stage Impact of a New Traffic Policy in Milan, Italy," IJERPH, MDPI, vol. 17(3), pages 1-22, February.
    4. Andrea Baranzini & Stefano Carattini & Linda Tesauro, 2021. "Designing Effective and Acceptable Road Pricing Schemes: Evidence from the Geneva Congestion Charge," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 79(3), pages 417-482, July.
    5. Morton, Craig & Lovelace, Robin & Anable, Jillian, 2017. "Exploring the effect of local transport policies on the adoption of low emission vehicles: Evidence from the London Congestion Charge and Hybrid Electric Vehicles," Transport Policy, Elsevier, vol. 60(C), pages 34-46.
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