Zoning as a control of pollution in a spatial environment
AbstractSpace matters not only because of the transportation costs it imposes on the economy but also because it can serve as an effective instrument to control pollution damages. Previous models of pollution either disregard space altogether or presume a predetermined separation between polluters and pollutees, usually into a CBD where the polluting industry is located and a residential ring where the city's laborers reside. All possible location combinations of housing and industry are considered in this study. The results demonstrate that the management of pollution must recognize the trade-off between two cost components: pollution costs and transportation costs. This trade-off along with the non-convexity inherent in spatial models results in multiple local optima. Negligible commuting costs combined with pollution emissions bearing ill effects at a rate declining with distance leads to an allocation with one industrial zone and one residential zone. As commuting costs increase, the optimal allocation passes through an endogenously determined series of increasing thresholds. Each time a threshold is crossed the number of zones of each type increases until the internal solution is reached after the final threshold has been crossed. In the internal solution, there is no commuting, and housing and industry assume adjacent locations. In such an economy, Pigouvian taxes are generally inefficient. Instead, the efficient tax is a per unit land tax equal to the additional damages contributed by that land unit's pollution.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of California at Berkeley, Department of Agricultural and Resource Economics and Policy in its series CUDARE Working Paper Series with number 875.
Length: 56 pages
Date of creation: 1999
Date of revision:
Contact details of provider:
Postal: 207 Giannini Hall #3310, Berkeley, CA 94720-3310
Phone: (510) 642-3345
Fax: (510) 643-8911
Web page: http://areweb.berkeley.edu/library/Main/CUDARE
More information through EDIRC
Postal: University of California, Giannini Foundation of Agricultural Economics Library, 248 Giannini Hall #3310, Berkeley CA 94720-3310
Other versions of this item:
- Hochman, Oded & Rausser, Gordon C., 1999. "Zoning as a control of pollution in a spatial environment," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt0qq9849t, Department of Agricultural & Resource Economics, UC Berkeley.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kolstad, Charles D., 1987. "Uniformity versus differentiation in regulating externalities," Journal of Environmental Economics and Management, Elsevier, vol. 14(4), pages 386-399, December.
- T. H. Tietenberg, 1978. "Spatially Differentiated Air Pollutant Emission Charges: An Economic and Legal Analysis," Land Economics, University of Wisconsin Press, vol. 54(3), pages 265-277.
- Spulber, Daniel F., 1985. "Effluent regulation and long-run optimality," Journal of Environmental Economics and Management, Elsevier, vol. 12(2), pages 103-116, June.
- Polinsky, A Mitchell, 1980. "Strict Liability vs. Negligence in a Market Setting," American Economic Review, American Economic Association, vol. 70(2), pages 363-67, May.
- Mills, Edwin S & Ferranti, David M, 1971. "Market Choices and Optimum City Size," American Economic Review, American Economic Association, vol. 61(2), pages 340-45, May.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jeff Cole).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.