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Trans‐boundary pollution transmission and regional agglomeration effects

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  • Moriki Hosoe
  • Tohru Naito

Abstract

. The purpose of this article is to analyse the effect of the externalities of industrial pollution on trade patterns and economic geography. Many researchers have studied the effects of agglomeration on regional systems. Krugman (1991) applied the monopolistic competition model to international trade and has thereby contributed to this category of inquiry. However, that study did not treat the agricultural sector as important. Similarly, environmental factors are ignored in most studies of that literature. Industrial agglomeration affects the productivities of other sectors via air pollution, water pollution, and so on. We introduce the environmental factor into the new economic geography model and analyse the effects of the environmental damage on the distribution between regions, and the effect of the environmental tax. After analysing the case without migration in the short run, we discuss the long run case in which households can move freely among regions. We derive the same equilibrium pattern of population distribution.

Suggested Citation

  • Moriki Hosoe & Tohru Naito, 2006. "Trans‐boundary pollution transmission and regional agglomeration effects," Papers in Regional Science, Wiley Blackwell, vol. 85(1), pages 99-120, March.
    • Handle: RePEc:bla:presci:v:85:y:2006:i:1:p:99-120
    DOI: 10.1111/j.1435-5957.2006.00062.x
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    References listed on IDEAS

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    1. Erik T. Verhoef & Peter Nijkamp, 2000. "Externalities in Urban Sustainability," Tinbergen Institute Discussion Papers 00-077/3, Tinbergen Institute.
    2. Hoel,M. & Shapiro,P., 2000. "Transboundary environmental problems with a mobile population : is there a need for central policy," Memorandum 16/2000, Oslo University, Department of Economics.
    3. Holtz-Eakin, Douglas & Lovely, Mary E., 1996. "Scale economies, returns to variety, and the productivity of public infrastructure," Regional Science and Urban Economics, Elsevier, vol. 26(2), pages 105-123, April.
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    Cited by:

    1. Olga Alonso‐Villar, 2008. "A model of economic geography with demand‐pull and congestion costs," Papers in Regional Science, Wiley Blackwell, vol. 87(2), pages 261-276, June.
    2. Chen, Anping & Groenewold, Nicolaas, 2015. "Emission reduction policy: A regional economic analysis for China," Economic Modelling, Elsevier, vol. 51(C), pages 136-152.
    3. Dean M. Hanink, 2010. "Perspectives on Regional Change: A Review Essay on Handbook of Regional Growth and Development Theories," Growth and Change, Wiley Blackwell, vol. 41(1), pages 3-27, March.
    4. Anping Chen & Nicolaas Groenewold, 2014. "The regional economic effects of a reduction in carbon emissions and an evaluation of offsetting policies in China," Papers in Regional Science, Wiley Blackwell, vol. 93(2), pages 429-453, June.
    5. Jingkun Zhou & Juan Tian & Diandian Zhang, 2023. "Pollution Effect of the Agglomeration of Thermal Power and Other Air Pollution-Intensive Industries in China," IJERPH, MDPI, vol. 20(2), pages 1-17, January.
    6. Fabio Grazi (AFD) & Henri WAISMAN & Jeroen van DEN BERGH, 2017. "A Simple Model of Agglomeration Economies with Environmental Externalities," Working Paper 6123ba60-086f-4618-9df3-a, Agence française de développement.
    7. Daisuke Ikazaki & Tohru Naito, 2008. "Population, technological conversion, and optimal environmental policy," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 42(3), pages 705-724, September.
    8. 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).
    9. Shan-Li Wang & Feng-Wen Chen & Bing Liao & Cuiju Zhang, 2020. "Foreign Trade, FDI and the Upgrading of Regional Industrial Structure in China: Based on Spatial Econometric Model," Sustainability, MDPI, vol. 12(3), pages 1-16, January.
    10. repec:rri:wpaper:201013 is not listed on IDEAS
    11. Haochang Yang & Faming Zhang & Yixin He, 2021. "Exploring the effect of producer services and manufacturing industrial co-agglomeration on the ecological environment pollution control in China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(11), pages 16119-16144, November.
    12. Tohru Naito & Tatsuya Omori, 2014. "Can urban pollution shrink rural districts?," Letters in Spatial and Resource Sciences, Springer, vol. 7(2), pages 73-83, July.
    13. Liu, Yazhou & Ren, Tiantian & Liu, Lijun & Ni, Jinlan & Yin, Yingkai, 2023. "Heterogeneous industrial agglomeration, technological innovation and haze pollution," China Economic Review, Elsevier, vol. 77(C).
    14. Jun Liu & Yuhui Zhao & Zhonghua Cheng & Huiming Zhang, 2018. "The Effect of Manufacturing Agglomeration on Haze Pollution in China," IJERPH, MDPI, vol. 15(11), pages 1-15, November.
    15. Jianwei Zhang & Heng Li & Guoxin Jiao & Jiayi Wang & Jingjing Li & Mengzhen Li & Haining Jiang, 2022. "Spatial Pattern of Technological Innovation in the Yangtze River Delta Region and Its Impact on Water Pollution," IJERPH, MDPI, vol. 19(12), pages 1-20, June.
    16. Chali Nondo & Peter Schaeffer & Tesfa Gebremedhin & Jerald Fletcher, 2010. "An Empirical Analysis of the Interactions Between Environmental Regulations and Economic Growth," Working Papers Working Paper 2010-13, Regional Research Institute, West Virginia University.
    17. Junsong Wang & Xinyue Ye & Yehua Dennis Wei, 2019. "Effects of Agglomeration, Environmental Regulations, and Technology on Pollutant Emissions in China: Integrating Spatial, Social, and Economic Network Analyses," Sustainability, MDPI, vol. 11(2), pages 1-20, January.
    18. Anping Chen & Nicolaas Groenewold, 2013. "Regional Effects in China of an Emissions-Reduction Policy: Tax v. Subsidy," ERSA conference papers ersa13p1275, European Regional Science Association.
    19. Naifu Yu & Yingkai Tang & Ying Ma, 2023. "Spatio-Temporal Evolution, Spillover Effects of Land Resource Use Efficiency in Urban Built-Up Area: A Further Analysis Based on Economic Agglomeration," Land, MDPI, vol. 12(3), pages 1-17, February.
    20. Tohru Naito, 2010. "Regional agglomeration and transfer of pollution reduction technology under the presence of transboundary pollution," Regional Science Policy & Practice, Wiley Blackwell, vol. 2(2), pages 157-175, November.
    21. Kristian Behrens & Frédéric Robert‐Nicoud, 2009. "Krugman's Papers in Regional Science: The 100 dollar bill on the sidewalk is gone and the 2008 Nobel Prize well‐deserved," Papers in Regional Science, Wiley Blackwell, vol. 88(2), pages 467-489, June.

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