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The impact of road pricing on housing prices: Preliminary evidence from Milan

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  • Percoco, Marco

Abstract

Road pricing is increasingly used as an economic tool to decrease the burden of transport externalities. Following the examples of several cities worldwide, on 2nd January, 2008, the city of Milan introduced a charge for accessing the city centre with the aim of curbing air pollution and congestion. The aim of this paper is to evaluate empirically the effect of such a charge on the housing market. By applying a difference-in-differences methodology, I find empirical support for a decrease in housing prices in the coverage area.

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  • Percoco, Marco, 2014. "The impact of road pricing on housing prices: Preliminary evidence from Milan," Transportation Research Part A: Policy and Practice, Elsevier, vol. 67(C), pages 188-194.
    • Handle: RePEc:eee:transa:v:67:y:2014:i:c:p:188-194
    DOI: 10.1016/j.tra.2014.07.006
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    1. Mohammed A. Quddus & Alon Carmel & Michael G. H. Bell, 2007. "The Impact of the Congestion Charge on Retail: the London Experience," Journal of Transport Economics and Policy, University of Bath, vol. 41(1), pages 113-133, January.
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    12. 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.
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    Cited by:

    1. Zhong, Shaopeng & Jiang, Yu & Nielsen, Otto Anker, 2022. "Lexicographic multi-objective road pricing optimization considering land use and transportation effects," European Journal of Operational Research, Elsevier, vol. 298(2), pages 496-509.
    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. 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.
    4. Cheng Keat Tang, 2016. "Traffic Externalities and Housing Prices: Evidence from the London Congestion Charge," SERC Discussion Papers 0205, Centre for Economic Performance, LSE.
    5. Tang, Cheng Keat, 2021. "The Cost of Traffic: Evidence from the London Congestion Charge," Journal of Urban Economics, Elsevier, vol. 121(C).
    6. Pablo González-Aliste & Iván Derpich & Mario López, 2023. "Reducing Urban Traffic Congestion via Charging Price," Sustainability, MDPI, vol. 15(3), pages 1-21, January.
    7. 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.
    8. Zhong, Shaopeng & Wang, Shusheng & Jiang, Yao & Yu, Bo & Zhang, Wenhao, 2015. "Distinguishing the land use effects of road pricing based on the urban form attributes," Transportation Research Part A: Policy and Practice, Elsevier, vol. 74(C), pages 44-58.
    9. 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.
    10. Zhang, Yingheng & Li, Haojie & Ren, Gang, 2022. "Quantifying the social impacts of the London Night Tube with a double/debiased machine learning based difference-in-differences approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 163(C), pages 288-303.
    11. 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.

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