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Can urban pollution shrink rural districts?

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  • Tohru Naito
  • Tatsuya Omori

Abstract

This paper discusses how the externality of environmental damage affects the equilibrium properties of a simple overlapping generations model with multiple regions. Simulation results indicate that the environmental policy of the government decreases capital accumulation. When the government imposes an environmental tax on the urban sector, the urban-to-rural population ratio decreases, whereas the total fertility rate increases. Copyright Springer-Verlag Berlin Heidelberg 2014

Suggested Citation

  • 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.
    • Handle: RePEc:spr:lsprsc:v:7:y:2014:i:2:p:73-83
    DOI: 10.1007/s12076-013-0102-y
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    References listed on IDEAS

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    1. Copeland, Brian R. & Taylor, M. Scott, 1999. "Trade, spatial separation, and the environment," Journal of International Economics, Elsevier, vol. 47(1), pages 137-168, February.
    2. Tatsuya Omori, 2009. "Effects of public education and social security on fertility," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(3), pages 585-601, July.
    3. Junsen Zhang & Junxi Zhang, 1998. "Social Security, Intergenerational Transfers, and Endogenous Growth," Canadian Journal of Economics, Canadian Economics Association, vol. 31(5), pages 1225-1241, November.
    4. Kimura, Masako & Yasui, Daishin, 2007. "Occupational choice, educational attainment, and fertility," Economics Letters, Elsevier, vol. 94(2), pages 228-234, February.
    5. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-142, March.
    6. 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.
    7. Sayaka Yakita, 2011. "Regional public goods, migration, and growth," Letters in Spatial and Resource Sciences, Springer, vol. 4(2), pages 129-138, July.
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    Cited by:

    1. Tohru Naito & Tatsuya Omori, 2016. "Household's disaster prevention activities, agglomeration and economic growth," Regional Science Policy & Practice, Wiley Blackwell, vol. 8(4), pages 177-195, November.
    2. Tohru Naito & Daisuke Ikazaki & Tatsuya Omori, 2017. "Precautionary public health, ageing and urban agglomeration," Asia-Pacific Journal of Regional Science, Springer, vol. 1(2), pages 655-669, October.
    3. Tohru Naito & Tatsuya Omori, 2017. "Aging And Urban Agglomeration Under A Multi-Regional Overlapping Generations Model," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 29(2), pages 135-150, July.

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    More about this item

    Keywords

    Environmental policy; Capital accumulation; Fertility; Population distribution; E61; J13; O52; R23;
    All these keywords.

    JEL classification:

    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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