A formal test of the long-term environmental effects of road pricing in Milan. (March 2021)

• Record Type: Journal Article
• Authors: Percoco, Marco
• Is Part Of: Research in transportation economics. Volume 85(2021)
• Publication Date: 2021-03
• Subjects: Road pricing -- Milan -- Conditional independence -- Regression discontinuity; Numbers: D78 -- H23 -- H77 -- L98; Transportation -- Periodicals; 388.05
• DOI: 10.1016/j.retrec.2020.100951
• Languages: English
• ISSNs: 0739-8859

Abstract

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.