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The Effect of Transportation and Housing Subsidies on Urban Sprawl

Author

Listed:
  • Cai Qiao
  • Wang Zou
  • Xiao Lingling

    (School of Economics and Management, Beijing Jiaotong University, Beijing100044, China)

Abstract

This paper analyses theoretically the effect of transportation and housing subsidies on urban sprawl, modal choice decisions and urban spatial structure using a spatial general equilibrium model in a monocentric city with two transport modes. Our analysis shows that public transit subsidy leads to urban shrink, whilst subsidizing automobile and housing make the city sprawl. We also find the effects of the other factors on urban sprawl, such as households income and demand, rural land rent, the income tax rate, the total fixed cost of public transit and automobile and the travelling marginal cost of public transit and automobile. Furthermore, this paper also studies how to maximize the urban-area-wide spatial equilibrium utility level.

Suggested Citation

  • Cai Qiao & Wang Zou & Xiao Lingling, 2018. "The Effect of Transportation and Housing Subsidies on Urban Sprawl," Journal of Systems Science and Information, De Gruyter, vol. 6(3), pages 237-248, June.
    • Handle: RePEc:bpj:jossai:v:6:y:2018:i:3:p:237-248:n:3
    DOI: 10.21078/JSSI-2018-237-12
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    References listed on IDEAS

    as
    1. Chengri Ding & Xingshuo Zhao, 2011. "Assessment of Urban Spatial-Growth Patterns in China During Rapid Urbanization," Chinese Economy, Taylor & Francis Journals, vol. 44(1), pages 46-71, January.
    2. Qing Su & Joseph S. DeSalvo, 2008. "The Effect Of Transportation Subsidies On Urban Sprawl," Journal of Regional Science, Wiley Blackwell, vol. 48(3), pages 567-594, August.
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