Compact or Spread-Out Cities: Urban Planning, Taxation, and the Vulnerability to Transportation Shocks
AbstractThis 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 InfoPaper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2007.17.
Date of creation: Feb 2007
Date of revision:
Urban transportation; Housing; Inertia; Vulnerability; Transportation Taxation;
Other versions of this item:
- Gusdorf, Francois & Hallegatte, Stephane, 2007. "Compact or spread-out cities: Urban planning, taxation, and the vulnerability to transportation shocks," Energy Policy, Elsevier, vol. 35(10), pages 4826-4838, October.
- R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
- R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-03-17 (All new papers)
- NEP-GEO-2007-03-17 (Economic Geography)
- NEP-PBE-2007-03-17 (Public Economics)
- NEP-URE-2007-03-17 (Urban & Real Estate Economics)
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