No free polluting anymore: The impact of a vehicle pollution charge on air quality
The paper analyzes the impact of a vehicle pollution charge (Ecopass), enforced at peak time, on nitrogen oxides concentration in Milan. Using hourly data on pollution concentration and a vector autoregressive model, I estimate the short and long run e ects of the policy, the e ects outside the Ecopass area and during o -peak time. Results suggest that Ecopass reduced pollution in the short run, but had no e ect in the long run. The e ect on zones outside Ecopass area is not homogeneous, suggesting substitution e ects in some areas of the city. There is no systematic evidence of increased pollution levels during o -peak time due to Ecopass.
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