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Economic Geography and the Effect of Environmental Pollution on Agglomeration

Author

Listed:
  • Lange Andreas

    () (University of Maryland)

  • Quaas Martin F

    () (UFZ Helmholtz Centre for Environmental Research)

Abstract

We study how local environmental pollution affects spatial patterns of economic activities when workers can migrate. Based on a New Economic Geography model, we analytically characterize the stability conditions for three different types of equilibria: symmetric spreading, partial and full agglomeration. We show that the extent of agglomeration crucially depends on the damages caused by local pollution. We thereby provide a unified framework for discussing different relationships between the extent of agglomeration and trade freeness that have been found in the literature.

Suggested Citation

  • Lange Andreas & Quaas Martin F, 2007. "Economic Geography and the Effect of Environmental Pollution on Agglomeration," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(1), pages 1-33, October.
  • Handle: RePEc:bpj:bejeap:v:7:y:2007:i:1:n:52
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    Citations

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    Cited by:

    1. Efthymia Kyriakopoulou & Anastasios Xepapadeas, "undated". "Environmental Policy and the Collapse of the Monocentric City," DEOS Working Papers 1021, Athens University of Economics and Business.
    2. Efthymia Kyriakopoulou & Anastasios Xepapadeas, "undated". "Environmental Policy, Spatial Spillovers and the Emergence of Economic Agglomerations," DEOS Working Papers 1017, Athens University of Economics and Business.
    3. Eppink, Florian V. & Withagen, Cees A., 2009. "Spatial patterns of biodiversity conservation in a multiregional general equilibrium model," Resource and Energy Economics, Elsevier, vol. 31(2), pages 75-88, May.
    4. Dean M. Hanink, 2010. "Perspectives on Regional Change: A Review Essay on "Handbook of Regional Growth and Development Theories"," Growth and Change, Wiley Blackwell, vol. 41(1), pages 3-27.
    5. 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.
    6. Rauscher, Michael, 2009. "Concentration, separation, and dispersion: Economic geography and the environment," Thuenen-Series of Applied Economic Theory 109, University of Rostock, Institute of Economics.
    7. 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.
    8. Borck, Rainald & Pflüger, Michael, 2013. "Green cities? Urbanization, trade and the environment," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79763, Verein für Socialpolitik / German Economic Association.
    9. Efthymia Kyriakopoulou & Anastasios Xepapadeas, 2011. "Spatial location decisions under environmental policy and housing externalities," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 13(3), pages 195-217, September.

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