In order to reduce congestion and improve the environment in Milan, a
policy of restricting the entry of private vehicles to the historic ce
ntre of the city was initiated in 1985. The evidence on the effects of
this policy is reviewed. There appears to have been increased use of
taxis and commercial vehicles, as a substitute for cars. In addition,
in the early years of the policy, when the restrictions only operated
in the morning, there was a transfer of some car trips to the afternoo
n. The speed of traffic crossing the centre increased because there wa
s less congestion. Survey evidence indicated that the closure was view
ed favourably by residents, particularly those living in the centre (w
ho were allowed to use their cars in the closed area); this was confir
med by the fact that properties in the centre appeared to have increas
ed in value relative to those outside the centre. In 1996 the policy w
as changed to one of preventing private motor vehicles crossing the ce
ntre although entry to the centre was allowed. However, a policy of cl
osure of the centre is still operated in several other Italian cities.