IDEAS home Printed from https://ideas.repec.org/a/eee/regeco/v62y2017icp12-23.html
   My bibliography  Save this article

Equilibrium and first-best city with endogenous exposure to local air pollution from traffic

Author

Listed:
  • Schindler, Mirjam
  • Caruso, Geoffrey
  • Picard, Pierre

Abstract

Exposure to urban traffic-induced air pollution is a major health concern of cities. This paper analyzes the urban structure when localized pollution exposure arises from commuting traffic and investigates the feedback effect of endogenous pollution on residential choices. The presence of stronger traffic-induced air pollution exposure reduces the geographical extent and the population of cities. Land rents fall with distance from the city center while population densities may be non-monotonic. Cleaner vehicle technologies reduce pollution exposure everywhere, increase population and density everywhere and do not affect the spatial extent of the city. The paper compares the urban equilibrium with the first-best. The first-best structure is a less expanded city with higher densities at the center and lower densities at the fringe.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:regeco:v:62:y:2017:i:c:p:12-23
    DOI: 10.1016/j.regsciurbeco.2016.10.006
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0166046216302952
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.regsciurbeco.2016.10.006?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Anas, Alex & Xu, Rong, 1999. "Congestion, Land Use, and Job Dispersion: A General Equilibrium Model," Journal of Urban Economics, Elsevier, vol. 45(3), pages 451-473, May.
    2. McConnell, Virginia Duff & Straszheim, Mahlon, 1982. "Auto pollution and congestion in an urban model: An analysis of alternative strategies," Journal of Urban Economics, Elsevier, vol. 11(1), pages 11-31, January.
    3. Verhoef, Erik T., 2005. "Second-best congestion pricing schemes in the monocentric city," Journal of Urban Economics, Elsevier, vol. 58(3), pages 367-388, November.
    4. 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.
    5. Gaigné, Carl & Riou, Stéphane & Thisse, Jacques-François, 2012. "Are compact cities environmentally friendly?," Journal of Urban Economics, Elsevier, vol. 72(2), pages 123-136.
    6. Fujita,Masahisa, 1991. "Urban Economic Theory," Cambridge Books, Cambridge University Press, number 9780521396455.
    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. Charles van Marrewijk, 2005. "Geographical Economics and the Role of Pollution on Location," Tinbergen Institute Discussion Papers 05-018/2, Tinbergen Institute.
    9. Kenneth Y. Chay & Michael Greenstone, 2005. "Does Air Quality Matter? Evidence from the Housing Market," Journal of Political Economy, University of Chicago Press, vol. 113(2), pages 376-424, April.
    10. Gaigné, Carl & Riou, Stéphane & Thisse, Jacques-François, 2012. "Are compact cities environmentally friendly?," Journal of Urban Economics, Elsevier, vol. 72(2), pages 123-136.
    11. Helena Martins & Ana Isabel Miranda & Carlos Borrego, 2012. "Urban Structure and Air Quality," Chapters, in: Budi Haryanto (ed.), Air Pollution - A Comprehensive Perspective, IntechOpen.
    12. Fisch, Oscar, 1975. "Externalities and the urban rent and population density functions: The case of air pollution," Journal of Environmental Economics and Management, Elsevier, vol. 2(1), pages 18-33, September.
    13. Robson, Arthur J., 1976. "Two models of urban air pollution," Journal of Urban Economics, Elsevier, vol. 3(3), pages 264-284, July.
    14. Brueckner, Jan K., 2014. "Cordon tolling in a city with congested bridges," Economics of Transportation, Elsevier, vol. 3(4), pages 235-242.
    15. 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.
    16. 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.
    17. Erik T. Verhoef & Peter Nijkamp, 2003. "Externalities in the Urban Economy," Tinbergen Institute Discussion Papers 03-078/3, Tinbergen Institute.
    18. Boadway, Robin & Song, Zhen & Tremblay, Jean-François, 2013. "Non-cooperative pollution control in an inter-jurisdictional setting," Regional Science and Urban Economics, Elsevier, vol. 43(5), pages 783-796.
    19. Tikoudis, Ioannis & Verhoef, Erik T. & van Ommeren, Jos N., 2015. "On revenue recycling and the welfare effects of second-best congestion pricing in a monocentric city," Journal of Urban Economics, Elsevier, vol. 89(C), pages 32-47.
    20. Vickrey, William S, 1969. "Congestion Theory and Transport Investment," American Economic Review, American Economic Association, vol. 59(2), pages 251-260, May.
    21. 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.
    22. Stef Proost & Kurt Van Dender, 1998. "Effectiveness and Welfare Impacts of Alternative Policies to Address Atmospheric Pollution in Urban Road Transport," Working Papers of Department of Economics, Leuven ces9831, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    23. Carl Gaigné & Stéphane Riou & Jacques-François Thisse, 2012. "Are Compact Cities Environmentally (and Socially) Desirable ?," Cahiers de recherche CREATE 2012-4, CREATE.
    24. 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.
    25. Smith, V Kerry & Huang, Ju-Chin, 1995. "Can Markets Value Air Quality? A Meta-analysis of Hedonic Property Value Models," Journal of Political Economy, University of Chicago Press, vol. 103(1), pages 209-227, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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).
    2. Basu, Arnab K. & Byambasuren, Tsenguunjav & Chau, Nancy H. & Khanna, Neha, 2020. "Cooking Fuel Choice, Indoor Air Quality and Child Mortality in India," GLO Discussion Paper Series 560, Global Labor Organization (GLO).
    3. Rainald Borck, 2019. "Bevölkerungsdichte, Stadtstruktur und Umweltverschmutzung [Population density, urban structure and air pollution]," Zeitschrift für Immobilienökonomie (German Journal of Real Estate Research), Springer;Gesellschaft für Immobilienwirtschaftliche Forschung e. V., vol. 5(1), pages 161-171, November.
    4. Bahlali, Mohamed & Petit, Quentin, 2024. "An equilibrium model of city with atmospheric pollution dispersion," Journal of Mathematical Economics, Elsevier, vol. 111(C).
    5. Dorothée Brécard & Rémy Le Boennec & Frédéric Salladarré, 2018. "Accessibility, local pollution and housing prices. Evidence from Nantes Métropole, France," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 500-501-5, pages 97-115.
    6. Borck, Rainald & Schrauth, Philipp, 2021. "Population density and urban air quality," Regional Science and Urban Economics, Elsevier, vol. 86(C).
    7. Pflüger, Michael P., 2018. "City Size, Pollution and Emission Policies," IZA Discussion Papers 11354, Institute of Labor Economics (IZA).
    8. Zhang, Bin & Xin, Qingyao & Chen, Siyuan & Yang, Zhiying & Wang, Zhaohua, 2024. "Urban spatial structure and commuting-related carbon emissions in China: Do monocentric cities emit more?," Energy Policy, Elsevier, vol. 186(C).
    9. Ioannis Tikoudis & Walid Oueslati, 2023. "The future of transport-related emissions in dense urban areas: an analysis of various policy scenarios with MOLES," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 25(2), pages 205-268, April.
    10. Pflüger, Michael, 2021. "City size, pollution and emission policies," Journal of Urban Economics, Elsevier, vol. 126(C).
    11. Domon, Shohei & Hirota, Mayu & Kono, Tatsuhito & Managi, Shunsuke & Matsuki, Yusuke, 2022. "The long-run effects of congestion tolls, carbon tax, and land use regulations on urban CO2 emissions," Regional Science and Urban Economics, Elsevier, vol. 92(C).
    12. William Brock & Anastasios Xepapadeas, 2020. "Spatial Environmental and Resource Economics," DEOS Working Papers 2002, Athens University of Economics and Business.
    13. Mirjam Schindler & Geoffrey Caruso, 2020. "Emerging urban form – Emerging pollution: Modelling endogenous health and environmental effects of traffic on residential choice," Environment and Planning B, , vol. 47(3), pages 437-456, March.
    14. Schindler, Mirjam & Wang, Judith Y.T. & Connors, Richard D., 2021. "A two-stage residential location and transport mode choice model with exposure to traffic-induced air pollution," Journal of Transport Geography, Elsevier, vol. 93(C).
    15. Michael Pflüger, 2020. "City Size, Pollution and Emission Policies," CESifo Working Paper Series 8448, CESifo.

    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. Mirjam Schindler & Geoffrey Caruso, 2020. "Emerging urban form – Emerging pollution: Modelling endogenous health and environmental effects of traffic on residential choice," Environment and Planning B, , vol. 47(3), pages 437-456, March.
    2. 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.
    3. 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).
    4. 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.
    5. Rainald Borck & Michael Pflüger, 2019. "Green cities? Urbanization, trade, and the environment," Journal of Regional Science, Wiley Blackwell, vol. 59(4), pages 743-766, September.
    6. 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).
    7. Kahn, Matthew E. & Walsh, Randall, 2015. "Cities and the Environment," 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 405-465, Elsevier.
    8. Legras, Sophie, 2015. "Correlated environmental impacts of wastewater management in a spatial context," Regional Science and Urban Economics, Elsevier, vol. 52(C), pages 83-92.
    9. Zhang, Bin & Xin, Qingyao & Chen, Siyuan & Yang, Zhiying & Wang, Zhaohua, 2024. "Urban spatial structure and commuting-related carbon emissions in China: Do monocentric cities emit more?," Energy Policy, Elsevier, vol. 186(C).
    10. Rainald Borck, 2019. "Bevölkerungsdichte, Stadtstruktur und Umweltverschmutzung [Population density, urban structure and air pollution]," Zeitschrift für Immobilienökonomie (German Journal of Real Estate Research), Springer;Gesellschaft für Immobilienwirtschaftliche Forschung e. V., vol. 5(1), pages 161-171, November.
    11. Romain Gaté, 2019. "Efficiency of road pricing schemes with endogenous workplace locations in a polycentric city," Working Papers halshs-02335766, HAL.
    12. Carl Gaigné & Jacques-François Thisse, 2013. "New Economic Geography and the City," Working Papers SMART 13-02, INRAE UMR SMART.
    13. Castells-Quintana, David & Dienesch, Elisa & Krause, Melanie, 2021. "Air pollution in an urban world: A global view on density, cities and emissions," Ecological Economics, Elsevier, vol. 189(C).
    14. Ioannis Tikoudis & Walid Oueslati, 2023. "The future of transport-related emissions in dense urban areas: an analysis of various policy scenarios with MOLES," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 25(2), pages 205-268, April.
    15. Yupeng Liu & Jianguo Wu & Deyong Yu, 2018. "Disentangling the Complex Effects of Socioeconomic, Climatic, and Urban Form Factors on Air Pollution: A Case Study of China," Sustainability, MDPI, vol. 10(3), pages 1-14, March.
    16. LE BOENNEC, Rémy & SARI, Florent, 2015. "Nouvelles centralités, choix modal et politiques de déplacements : le cas nantais," MPRA Paper 109261, University Library of Munich, Germany.
    17. Vandyck, Toon & Rutherford, Thomas F., 2018. "Regional labor markets, commuting, and the economic impact of road pricing," Regional Science and Urban Economics, Elsevier, vol. 73(C), pages 217-236.
    18. Dascher, Kristof, 2013. "City Silhouette, World Climate," MPRA Paper 48375, University Library of Munich, Germany.
    19. Cárdenas Rodríguez, Miguel & Dupont-Courtade, Laura & Oueslati, Walid, 2016. "Air pollution and urban structure linkages: Evidence from European cities," Renewable and Sustainable Energy Reviews, Elsevier, vol. 53(C), pages 1-9.
    20. Rémy Le Boennec & Sterenn Lucas, 2020. "Does a positive density perception increase the probability of living in the ideal housing type? Evidence from the Loire-Atlantique Département in France," Working Papers hal-02441513, HAL.

    More about this item

    Keywords

    Residential choice; Traffic-induced air pollution; Localized pollution exposure; Urban structure;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

    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:eee:regeco:v:62:y:2017:i:c:p:12-23. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/regec .

    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.