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Agglomeration: Economic and Environmental Impacts

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  • JunJie Wu

Abstract

Urbanization is taking place at an unprecedented pace and scale in China, India, and many other emerging economies. This will have profound impacts on the world economy and environment. This review provides a critical assessment of the current understanding of the intertwined relationships between agglomeration, economic growth, and environmental quality. We start by providing a brief overview of the extensive literature on the drivers of agglomeration and its economic impact. We then discuss the opposing views on the environmental impact of agglomeration and illustrate the trade-offs involved when choosing among different levels and forms of agglomeration. Finally, we discuss challenges for environmental management in a rapidly urbanizing economy and some lessons learned from history and experiences of urban development and their policy implications. The review concludes with a discussion of key knowledge gaps and future research directions.

Suggested Citation

  • JunJie Wu, 2019. "Agglomeration: Economic and Environmental Impacts," Annual Review of Resource Economics, Annual Reviews, vol. 11(1), pages 419-438, October.
  • Handle: RePEc:anr:reseco:v:11:y:2019:p:419-438
    DOI: 10.1146/annurev-resource-100518-094151
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    Cited by:

    1. Wu, JunJie & Segerson, Kathleen & Wang, Chunhua, 2023. "Is environmental regulation the answer to pollution problems in urbanizing economies?," Journal of Environmental Economics and Management, Elsevier, vol. 117(C).
    2. Margherita Carlucci & Gloria Polinesi & Luca Salvati, 2023. "Agglomeration vs amenities? Unraveling the latent engine of growth in metropolitan Greece," Environment and Planning B, , vol. 50(9), pages 2491-2509, November.
    3. Seth Morgan & Alexander Pfaff & Julien Wolfersberger, 2022. "Environmental Policies Benefit Economic Development: Implications of Economic Geography," Annual Review of Resource Economics, Annual Reviews, vol. 14(1), pages 427-446, October.

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