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Urban Sustainability, Agglomeration Forces and the Technological Deus ex Machina


Author Info

  • Erik Verhoef

    (Vrije Universiteit Amsterdam)

  • Peter Nijkamp

    (Vrije Universiteit Amsterdam)

  • Joe Daniel

    (University of Delaware, USA)


This paper aims to analyze and depict urban equilibrium from the perspective of acomplex force field between (positive) agglomeration economies and (negative) environmentalexternalities. Based on a simplified representation of a linear urban economy, anarchetypical model based on general equilibrium principles is designed and its propertiesare investigated by using numerical simulations. The model includes a spacious industrial centrein which agglomeration externalities are differentiated over space, and a residential area thatsuffers from pollution which too is differentiated over space. Environmental technology choiceby firms is endogenized. This model is able to generate interesting and sometimescounter-intuitive results for the city under consideration.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 01-117/3.

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Date of creation: 06 Dec 2001
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Handle: RePEc:dgr:uvatin:20010117

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