An economic, environmental and transport evaluation of the Ecopass scheme in Milan: three years later
AbstractThe paper provides an evaluation of the Ecopass scheme for the years 2008, 2009 and 2010. The term Ecopass conveys the stated political objective of the scheme: a PASS to improve the quality of the urban environment (ECO). The scheme has actually improved the air quality in Milan, although the recommended PM10 threshold is still exceeded for a larger number of days than that recommended by EU directives. This paper estimates the costs and benefits of the scheme three years after its implementation using the same methodology applied in Rotaris et al. (2010) for the year 2008. It results that the benefits still exceed the costs by an increasing amount, but at an annual decreasing rate of improvement. The Ecopass scheme has proved beneficial, but it seems to have exhausted its potential: little further gains in environmental quality could be obtained via a fiscal incentive to improve the abatement technology of the vehicles. The new administration, elected in June 2011, is faced with the task of deciding whether to dismiss, maintain or change the Ecopass scheme. The prevailing idea coming from the Ecopass Commission and from the advocacy groups is to extend both the area of application and the number of classes subject to the charge. A move from a pollution charge to a congestion charge, or at least a combination of a pollution and a congestion charge is envisaged.
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Bibliographic InfoPaper provided by SIET Società Italiana di Economia dei Trasporti e della Logistica in its series Working Papers with number 1103.
Length: 20 pages
Date of creation: 2011
Date of revision:
Ecopass; road pricing; congestion pricing; urban transport;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-11-01 (All new papers)
- NEP-ENE-2011-11-01 (Energy Economics)
- NEP-ENV-2011-11-01 (Environmental Economics)
- NEP-URE-2011-11-01 (Urban & Real Estate Economics)
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- Cerruti, Davide, 2013. "No free polluting anymore: The impact of a vehicle pollution charge on air quality," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150575, Agricultural and Applied Economics Association.
- Carnovale, Maria & Gibson, Matthew, 2012. "Effects of Milan's Congestion Charge," University of California at San Diego, Economics Working Paper Series qt4j2755jq, Department of Economics, UC San Diego.
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