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Compact or Spread-Out Cities: Urban Planning, Taxation, and the Vulnerability to Transportation Shocks

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  • François Gusdorf

    (CIRED)

  • Stéphane Hallegatte

    (Centre International de Recherche sur l'Environnement et le Développement Ecole Nationale de la Météorologie)

Abstract

This paper shows that cities made more compact by transportation taxation are more robust than spread-out cities to shocks in transportation costs. Such a shock, indeed, entails negative transition effects that are caused by housing infrastructure inertia and are magnified in low-density cities. Distortions due to a transportation tax, however, have in absence of shock detrimental consequences that need to be accounted for. The range of beneficial tax levels can, therefore, be identified as a function of the possible magnitude of future shocks in transportation costs. These taxation levels, which can reach significant values, reduce city vulnerability and prevent lock-ins in under-optimal situations.

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Bibliographic Info

Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2007.17.

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Date of creation: Feb 2007
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Handle: RePEc:fem:femwpa:2007.17

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Keywords: Urban transportation; Housing; Inertia; Vulnerability; Transportation Taxation;

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References

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  1. Akerman, Jonas & Hojer, Mattias, 2006. "How much transport can the climate stand?--Sweden on a sustainable path in 2050," Energy Policy, Elsevier, vol. 34(14), pages 1944-1957, September.
  2. Gusdorf, Francois & Hallegatte, Stephane, 2007. "Behaviors and housing inertia are key factors in determining the consequences of a shock in transportation costs," Energy Policy, Elsevier, vol. 35(6), pages 3483-3495, June.
  3. Brueckner, Jan K & Fansler, David A, 1983. "The Economics of Urban Sprawl: Theory and Evidence on the Spatial Sizes of Cities," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 479-82, August.
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  6. Jin, Yi & Zeng, Zhixiong, 2004. "Residential investment and house prices in a multi-sector monetary business cycle model," Journal of Housing Economics, Elsevier, vol. 13(4), pages 268-286, December.
  7. Brueckner, Jan K., 2005. "Transport subsidies, system choice, and urban sprawl," Regional Science and Urban Economics, Elsevier, vol. 35(6), pages 715-733, November.
  8. Yacovissi William & Kern Clifford R., 1995. "Location and History as Determinants of Urban Residential Density," Journal of Urban Economics, Elsevier, vol. 38(2), pages 207-220, September.
  9. Schafer, Andreas, 1998. "The global demand for motorized mobility," Transportation Research Part A: Policy and Practice, Elsevier, vol. 32(6), pages 455-477, August.
  10. Renaud Crassous, Jean-Charles Hourcade, Olivier Sassi, 2006. "Endogenous Structural Change and Climate Targets Modeling Experiments with Imaclim-R," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 259-276.
  11. Renaud Crassous & Jean-Charles Hourcade & Olivier Sassi, 2006. "Endogenous structural change and climate targets," Post-Print halshs-00009335, HAL.
  12. Song, Yan & Zenou, Yves, 2005. "Property Tax and Urban Sprawl: Theory and Implications for U.S. Cities," Working Paper Series 648, Research Institute of Industrial Economics.
  13. Mayer, Christopher J. & Somerville, C. Tsuriel, 2000. "Residential Construction: Using the Urban Growth Model to Estimate Housing Supply," Journal of Urban Economics, Elsevier, vol. 48(1), pages 85-109, July.
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Cited by:
  1. Felix Creutzig, 2012. "Avoiding Carbon Lock-In: Policy Options for Advancing Structural Change," Working Papers 1, Department of Climate Change Economics, TU Berlin, revised Feb 2012.
  2. Strand, Jon & Miller, Sebastian & Siddiqui, Sauleh, 2011. "Infrastructure investments under uncertainty with the possibility of retrofit : theory and simulations," Policy Research Working Paper Series 5516, The World Bank.
  3. Hallegatte, Stephane & Heal, Geoffrey & Fay, Marianne & Treguer, David, 2011. "From growth to green growth -- a framework," Policy Research Working Paper Series 5872, The World Bank.
  4. Lampin, Laure B.A. & Nadaud, Franck & Grazi, Fabio & Hourcade, Jean-Charles, 2013. "Long-term fuel demand: Not only a matter of fuel price," Energy Policy, Elsevier, vol. 62(C), pages 780-787.
  5. repec:wbk:wbpubs:15790 is not listed on IDEAS

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