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Pollution and the Efficiency of Urban Growth

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  • Martin F. Quaas

    (University of Kiel)

  • Sjak Smulders

    (University of Calgary and Tilburg University)

Abstract

We analyze the efficiency of urbanization patterns in a dynamic model of endogenous urban growth with two sectors of production. Production exhibits increasing returns to scale on aggregate. Urban environmental pollution, as a force that discourages agglomeration, is caused by domestic production. We show that cities are too large and too few in number in equilibrium, compared to the efficient urbanization path, if economic growth implies increasing aggregate emissions. If, on the other hand, production becomes cleaner over time (`quality growth') the urbanization path approximates the efficient outcome after finite time.

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Bibliographic Info

Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2008.75.

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Date of creation: Sep 2008
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Handle: RePEc:fem:femwpa:2008.75

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Keywords: Cities; Urbanisation; Pollution; Growth; Migration; Sustainable Development;

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  13. David I. Stern, 2003. "The Rise and Fall of the Environmental Kuznets Curve," Rensselaer Working Papers in Economics 0302, Rensselaer Polytechnic Institute, Department of Economics.
  14. Anas, Alex & Xiong, Kai, 2005. "The formation and growth of specialized cities: efficiency without developers or Malthusian traps," Regional Science and Urban Economics, Elsevier, vol. 35(4), pages 445-470, July.
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