Housing rent and road pricing in Milan: Evidence from a geographical discontinuity approach. (November 2015)

• Record Type: Journal Article
• Authors: D'Arcangelo, Filippo Maria; Percoco, Marco
• Is Part Of: Transport policy. Volume 44(2015)
• Page Start: 108
• Page End: 116
• Publication Date: 2015-11
• Subjects: Q51 -- R21 -- R41 -- C21 -- C23; Road pricing -- Housing markets -- Rent -- Milan -- Regression discontinuity; Transportation and state -- Periodicals; Transportation -- Rates -- Periodicals; 388
• DOI: 10.1016/j.tranpol.2015.07.004
• Languages: English
• ISSNs: 0967-070X

Abstract

Abstract: To cope with severe problems of pollution and congestion, a road pricing scheme (the Ecopass) to enter the city centre was introduced in Milan in January 2008. This paper assesses the impact of such a policy measure on the housing market in terms of variations in rent within the treated area. To this end, we adopted a geographical difference-in-discontinuities approach, which allowed us to control for area specific factors and to identify the effect of road pricing at the boundary of the treated area. By using detailed data from 55 zones over the period 2007–2012, we found that the Ecopass has had a small and positive impact on housing rent, equal to +0.75%. Highlights: The housing market impact of road pricing in Milan is studied. A geographical difference-in-discontinuities approach is adopted. An increase in housing rent by 0.75% is found.