Working Papers

The Impact of Taxing Polluting Vehicles on Local Economic Activity

Road transport significantly contributes to environmental degradation and public health risks, prompting policymakers to implement measures aimed at reducing private car use. While these policies address critical environmental challenges, they may also have unintended consequences on local economic activities by increasing transportation costs. This paper examines the economic impact of a vehicle emissions charge on small businesses in Milan, where a charging zone was introduced with fees determined by vehicle pollution levels. Using geo-referenced firm-level data, I provide causal estimates of the policy's effect on local economic activity. The findings show that the charges negatively affect only the sales of retail businesses located close to the perimeter of the regulated area, while leaving retail activities situated deeper inside the zone unaffected. Moreover, affected stores adjust their costs in response to the decline in revenues, resulting in no observable impact on profits or business closures. The empirical analysis is complemented by a theoretical framework that helps clarify the underlying mechanisms and reconciles findings from previous studies that appear otherwise contradictory.

Work in Progress

You die, I live: Longevity Beliefs, Financial Knowledge and Retirement Planning  (with Claudia Curi, Andreas Dibiasi, Matteo Ploner and Mirco Tonin) 

Who Supports Environmental Policies? The Electoral Consequences of Taxing Polluting Vehicles  (with Davide Cipullo) 

Culture and Long-term Investments  (with Claudia Curi, Andreas Dibiasi, Matteo Ploner and Mirco Tonin) 

Differential Treatments and Spillovers in Regression Discontinuity Designs