No free polluting anymore: The impact of a vehicle pollution charge on air quality
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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 auto regressive model,
I estimate the short and long run effects of the policy, the effects outside the Ecopass area and during off-peak
time. Results suggest that Ecopass reduced pollution in the short run, but had no effect in the long run. The
effect on zones outside Ecopass area is not homogeneous, suggesting substitution effects in some areas of the
city. There is no systematic evidence of increased pollution levels during off-peak time due to Ecopass.