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Economic Geography and the Effect of Environmental Pollution on Agglomeration

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Author Info

  • Lange Andreas

    ()
    (University of Maryland)

  • Quaas Martin F

    ()
    (UFZ Helmholtz Centre for Environmental Research)

Abstract

We study how local environmental pollution affects spatial patterns of economic activities when workers can migrate. Based on a New Economic Geography model, we analytically characterize the stability conditions for three different types of equilibria: symmetric spreading, partial and full agglomeration. We show that the extent of agglomeration crucially depends on the damages caused by local pollution. We thereby provide a unified framework for discussing different relationships between the extent of agglomeration and trade freeness that have been found in the literature.

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File URL: http://www.degruyter.com/view/j/bejeap.2007.7.1/bejeap.2007.7.1.1724/bejeap.2007.7.1.1724.xml?format=INT
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Bibliographic Info

Article provided by De Gruyter in its journal The B.E. Journal of Economic Analysis & Policy.

Volume (Year): 7 (2007)
Issue (Month): 1 (October)
Pages: 1-33

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Handle: RePEc:bpj:bejeap:v:7:y:2007:i:1:n:52

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Cited by:
  1. Eppink, Florian V. & Withagen, Cees A., 2009. "Spatial patterns of biodiversity conservation in a multiregional general equilibrium model," Resource and Energy Economics, Elsevier, vol. 31(2), pages 75-88, May.
  2. Efthymia Kyriakopoulou & Anastasios Xepapadeas, . "Environmental Policy and the Collapse of the Monocentric City," DEOS Working Papers 1020, Athens University of Economics and Business.
  3. Rauscher, Michael, 2009. "Concentration, separation, and dispersion: Economic geography and the environment," Thuenen-Series of Applied Economic Theory 109, University of Rostock, Institute of Economics.
  4. Anastasios Xepapadeas & Efthymia Kyriakopoulou, 2009. "Environmental Policy, Spatial Spillovers and the Emergence of Economic Agglomerations," Working Papers 2009.70, Fondazione Eni Enrico Mattei.
  5. Kyriakopoulou, Efthymia & Xepapadeas, Anastasios, 2013. "Environmental policy, first nature advantage and the emergence of economic clusters," Regional Science and Urban Economics, Elsevier, vol. 43(1), pages 101-116.
  6. Efthymia Kyriakopoulou & Anastasios Xepapadeas, 2011. "Spatial location decisions under environmental policy and housing externalities," Environmental Economics and Policy Studies, Society for Environmental Economics and Policy Studies - SEEPS, vol. 13(3), pages 195-217, September.

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