Local environmental gains from green Cohesion Policy: a study of air pollution reduction in Italian municipalities

We investigate how local characteristics influence the impact of Cohesion Policy funds targeting air pollution reduction (PM2.5) between 2014 and 2020. Based on spatial Durbin models, we find significant direct and indirect effects of these financial support programmes in municipalities characterised by high economic capital. Moreover, these funds are associated solely with significant direct effects in the cluster of municipalities characterised by high water availability, extensive land use and a strong tourism infrastructure but dispersed housing. Conversely, we do not find a significant impact in territories with a low economic endowment, but high-quality human capital.