IDEAS home Printed from https://ideas.repec.org/p/fem/femwpa/2014.08.html
   My bibliography  Save this paper

Spatial Policies and Land Use Patterns: Optimal and Market Allocations

Author

Listed:
  • Efthymia Kyriakopoulou

    (University of Gothenburg and Beijer Institute of Ecological Economics)

  • Anastasios Xepapadeas

    (Athens University of Economics and Business and Beijer Fellow)

Abstract

We study the optimal and equilibrium distribution of industrial and residential land in a given region. The trade-off between the agglomeration and dispersion forces, in the form of pollution from stationary forces, environmental policy, production externalities, and commuting costs, determines the emergence of industrial and residential clusters across space. In this context, we define two kinds of spatial policies that can be used in order to close the gap between optimal and market allocations. More specifically, we show that the joint implementation of a site-specific environmental tax and a site-specific labor subsidy can reproduce the optimum as an equilibrium outcome. We also propose a novel approach that allows for endogenous determination of land use patterns and provides more precise results compared to previous studies.

Suggested Citation

  • Efthymia Kyriakopoulou & Anastasios Xepapadeas, 2014. "Spatial Policies and Land Use Patterns: Optimal and Market Allocations," Working Papers 2014.08, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2014.08
    as

    Download full text from publisher

    File URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2014-008.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Esteban Rossi-Hansberg, 2004. "Optimal Urban Land Use and Zoning," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 7(1), pages 69-106, January.
    2. Papageorgiou, Yorgo Y & Smith, Terrence R, 1983. "Agglomeration as Local Instability of Spatially Uniform Steady-States," Econometrica, Econometric Society, vol. 51(4), pages 1109-1119, July.
    3. Tietenberg, T. H., 1974. "Derived decision rules for pollution control in a general equilibrium space economy," Journal of Environmental Economics and Management, Elsevier, vol. 1(1), pages 3-16, May.
    4. Arnott, Richard & Hochman, Oded & Rausser, Gordon C., 2008. "Pollution and land use: Optimum and decentralization," Journal of Urban Economics, Elsevier, vol. 64(2), pages 390-407, September.
    5. Henderson, J. V., 1977. "Externalities in a spatial context : The case of air pollution," Journal of Public Economics, Elsevier, vol. 7(1), pages 89-110, February.
    6. Bottazzi, Laura & Peri, Giovanni, 2003. "Innovation and spillovers in regions: Evidence from European patent data," European Economic Review, Elsevier, vol. 47(4), pages 687-710, August.
    7. Charles D. Kolstad, 1986. "Empirical Properties of Economic Incentives and Command-and-Control Regulations for Air Pollution Control," Land Economics, University of Wisconsin Press, vol. 62(3), pages 250-268.
    8. Robert E. Lucas, Jr., 2001. "Externalities and Cities," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 4(2), pages 245-274, April.
    9. Carlino, Gerald A. & Chatterjee, Satyajit & Hunt, Robert M., 2007. "Urban density and the rate of invention," Journal of Urban Economics, Elsevier, vol. 61(3), pages 389-419, May.
    10. Williams, Roberton III, 2002. "Environmental Tax Interactions when Pollution Affects Health or Productivity," Journal of Environmental Economics and Management, Elsevier, vol. 44(2), pages 261-270, September.
    11. Kyriakopoulou, Efthymia & Xepapadeas, Anastasios, 2013. "Environmental policy, first nature advantage and the emergence of economic clusters," Regional Science and Urban Economics, Elsevier, vol. 43(1), pages 101-116.
    12. Robert E. Lucas & Esteban Rossi-Hansberg, 2002. "On the Internal Structure of Cities," Econometrica, Econometric Society, vol. 70(4), pages 1445-1476, July.
    13. Bruvoll, Annegrete & Glomsrod, Solveig & Vennemo, Haakon, 1999. "Environmental drag: evidence from Norway," Ecological Economics, Elsevier, vol. 30(2), pages 235-249, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kyriakopoulou , Efthymia & Xepapadeas, Anastasios, 2014. "Atmospheric Pollution in Rapidly Growing Urban Centers: Spatial Policies and Land Use Patterns," Working Papers in Economics 601, University of Gothenburg, Department of Economics.
    2. Kyriakopoulou, Efthymia & Xepapadeas, Anastasios, 2013. "Environmental policy, first nature advantage and the emergence of economic clusters," Regional Science and Urban Economics, Elsevier, vol. 43(1), pages 101-116.
    3. Arnott, Richard & Hochman, Oded & Rausser, Gordon C., 2008. "Pollution and land use: Optimum and decentralization," Journal of Urban Economics, Elsevier, vol. 64(2), pages 390-407, September.
    4. Levin, Simon & Xepapadeas, Anastasios, 2015. "Transboundary Capital and Pollution Flows and the Emergence of Regional Inequalities," Climate Change and Sustainable Development 206869, Fondazione Eni Enrico Mattei (FEEM).
    5. Kyriakopoulou, Efthymia & Picard, Pierre M., 2021. "On the design of sustainable cities: Local traffic pollution and urban structure," Journal of Environmental Economics and Management, Elsevier, vol. 107(C).
    6. Efthymia Kyriakopoulou & Anastasios Xepapadeas, 2010. "Environmental Policy and the Collapse of the Monocentric City," DEOS Working Papers 1021, Athens University of Economics and Business.
    7. Wu, JunJie & Segerson, Kathleen & Wang, Chunhua, 2023. "Is environmental regulation the answer to pollution problems in urbanizing economies?," Journal of Environmental Economics and Management, Elsevier, vol. 117(C).
    8. Thomas J. Holmes, 2004. "Step-by-step Migrations," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 7(1), pages 52-68, January.
    9. Kantor, Yuval & Rietveld, Piet & van Ommeren, Jos, 2014. "Towards a general theory of mixed zones: The role of congestion," Journal of Urban Economics, Elsevier, vol. 83(C), pages 50-58.
    10. Topa, Giorgio & Zenou, Yves, 2015. "Neighborhood and Network Effects," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 561-624, Elsevier.
    11. Kyriakopoulou, Efthymia & Xepapadeas, Anastasios, 2009. "Environmental Policy, Spatial Spillovers and the Emergence of Economic Agglomerations," Sustainable Development Papers 54289, Fondazione Eni Enrico Mattei (FEEM).
    12. Brock, William A. & Xepapadeas, Anastasios & Yannacopoulos, Athanasios N., 2014. "Spatial externalities and agglomeration in a competitive industry," Journal of Economic Dynamics and Control, Elsevier, vol. 42(C), pages 143-174.
    13. Martin F. Quaas & Sjak Smulders, 2018. "Brown Growth, Green Growth, and the Efficiency of Urbanization," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 71(2), pages 529-549, October.
    14. Leung, Charles, 2004. "Macroeconomics and housing: a review of the literature," Journal of Housing Economics, Elsevier, vol. 13(4), pages 249-267, December.
    15. Osawa, Minoru & Akamatsu, Takashi, 2020. "Equilibrium refinement for a model of non-monocentric internal structures of cities: A potential game approach," Journal of Economic Theory, Elsevier, vol. 187(C).
    16. William Brock & Anastasios Xepapadeas, 2020. "Spatial Environmental and Resource Economics," DEOS Working Papers 2002, Athens University of Economics and Business.
    17. Spyridon Tsangaris & Anastasios Xepapadeas & Athanasios Yannacopoulos, 2022. "Spatial externalities, R&D spillovers, and endogenous technological change," DEOS Working Papers 2225, Athens University of Economics and Business.
    18. Schindler, Mirjam & Caruso, Geoffrey & Picard, Pierre, 2017. "Equilibrium and first-best city with endogenous exposure to local air pollution from traffic," Regional Science and Urban Economics, Elsevier, vol. 62(C), pages 12-23.
    19. Osawa, Minoru & Akamatsu, Takashi, 2019. "Emergence of Urban Landscapes: Equilibrium Selection in a Model of Internal Structure of the Cities," MPRA Paper 92395, University Library of Munich, Germany.
    20. Camille Regnier & Sophie Legras, 2018. "Urban Structure and Environmental Externalities," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 70(1), pages 31-52, May.

    More about this item

    Keywords

    Spatial Policies; Agglomeration; Land Use; Pollution; Environmental Tax; Labor Subsidy;
    All these keywords.

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fem:femwpa:2014.08. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alberto Prina Cerai (email available below). General contact details of provider: https://edirc.repec.org/data/feemmit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.