Pollution-reducing infrastructure and urban environmental policy
AbstractPollution-reducing infrastructure is introduced in a general spatial equilibrium model of a monocentric city as a public good which serves to abate polluting emissions from households consumption. This is an innovative extension to an urban economics model and motivated by stylized facts observed for the case of Bombay. It allows us to develop and analyse improved policy instruments to solve urban environmental problems.We demonstrate how the optimal density of people, goods consumption, and pollution-reducing infrastructure are interrelated and spatially distributed. The public-good character of infrastructure is shown to favour an increased infrastructural density all over the city in response to increased population size. In two settings of public and private infrastructural supply, we derive three interrelated and spatially differentiated policy instruments, by which the optimal allocation is implemented as a spatial market equilibrium.
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Bibliographic InfoArticle provided by Cambridge University Press in its journal Environment and Development Economics.
Volume (Year): 12 (2007)
Issue (Month): 02 (April)
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Other versions of this item:
- Quaas, Martin, 2005. "Pollution-reducing infrastructure and urban environmental policy," UFZ Discussion Papers 4/2005, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
- H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
- Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
- R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock
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