The urban road pricing scheme to curb pollution in Milan, Italy: Description, impacts and preliminary cost–benefit analysis assessment

Starting from January 2008 Milan implemented a charging scheme to enter an 8 km2 area of the city centre. The term used to denote the scheme is Ecopass, conveying the stated political objective of the scheme: a pass to improve the quality of the urban environment (ECO). The charge depends on the Euro emission standard of the vehicle. The paper illustrates the main features and impacts of the Milan Ecopass scheme, and presents a preliminary cost–benefit analysis. The scheme has been effective in curbing not only pollution emissions, but also congestion, and the result has been achieved with low implementation costs and without major political opposition. The cost–benefits analysis presents an overall net benefit. The identification of the winners and losers of the policy is conditioned by penalty payments. Without including the penalties, the surface public transport users and the society at large are the main winners, whereas car and especially freight vehicle users are net losers.