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Housing rent and road pricing in Milan: Evidence from a geographical discontinuity approach

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  • D’Arcangelo, Filippo Maria
  • Percoco, Marco

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%.

Suggested Citation

  • D’Arcangelo, Filippo Maria & Percoco, Marco, 2015. "Housing rent and road pricing in Milan: Evidence from a geographical discontinuity approach," Transport Policy, Elsevier, vol. 44(C), pages 108-116.
    • Handle: RePEc:eee:trapol:v:44:y:2015:i:c:p:108-116
    DOI: 10.1016/j.tranpol.2015.07.004
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    Cited by:

    1. De Borger, Bruno & Russo, Antonio, 2018. "The political economy of cordon tolls," Journal of Urban Economics, Elsevier, vol. 105(C), pages 133-148.
    2. Marco Percoco, 2016. "The impact of road pricing on accidents: a note on Milan," Letters in Spatial and Resource Sciences, Springer, vol. 9(3), pages 343-352, October.
    3. Boggio, Margherita & Beria, Paolo, 2019. "The role of transport supply in the acceptability of pollution charge extension. The case of Milan," Transportation Research Part A: Policy and Practice, Elsevier, vol. 129(C), pages 92-106.

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    More about this item

    Keywords

    Road pricing; Housing markets; Rent; Milan; Regression discontinuity;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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