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Geographical Economics and the Role of Pollution on Location Author info | Abstract | Publisher info | Download info | Related research | Statistics Charles van Marrewijk () (Faculty of Economics, Erasmus Universiteit Rotterdam)
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Geographical economics analyzes the endogenous determination of the location of economic activity in a general equilibrium framework. We investigate the impact of pollution by focusing on the interaction between location advantages and negative pollution externalities associated with local production. We distinguish between two goods (food and manufactures) and two factors of production (mobile human capital and immobile unskilled labor) and show that agglomeration of economic activity tends to become less attractive with pollution, and thus less likely. Moreover, we provide a simple necessary and sufficient condition for the spreading of economic activity to become more attractive, and thus more likely.
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Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number
05-018/2.
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Date of creation: 11 Feb 2005Date of revision:
Handle: RePEc:dgr:uvatin:20050018Contact details of provider: Web page: http://www.tinbergen.nl/
For technical questions regarding this item, or to correct its listing, contact: (Walther Schoonenberg).
Keywords: Geographical Economics ; Pollution ; Location ; Find related papers by JEL classification: F0 - International Economics - - General Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General R0 - Urban, Rural, and Regional Economics - - General
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"Increasing Returns and Economic Geography ,"
Journal of Political Economy ,
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Natalia Zugravu & Sonia Ben Kheder, 2008.
"The Pollution Haven Hypothesis: A Geographic Economy Model in a Comparative Study ,"
Working Papers
2008.73, Fondazione Eni Enrico Mattei.
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Other versions: Anastasios Xepapadeas & Efthymia Kyriakopoulou, 2009.
"Environmental Policy, Spatial Spillovers and the Emergence of Economic Agglomerations ,"
Working Papers
2009.70, Fondazione Eni Enrico Mattei.
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Fabio Grazi & Jeroen C.J.M. van den Bergh & Piet Rietveld, 2006.
"Modeling Spatial Sustainability: Spatial Welfare Economics versus Ecological Footprint ,"
Working Papers
2006.5, Fondazione Eni Enrico Mattei.
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