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A discrete-space urban model with environmental amenities


  • Tajibaeva, Liaila
  • Haight, Robert G.
  • Polasky, Stephen


This paper analyzes the effects of providing environmental amenities associated with open space in a discrete-space urban model and characterizes optimal provision of open space across a metropolitan area. The discrete-space model assumes distinct neighborhoods in which developable land is homogeneous within a neighborhood but heterogeneous across neighborhoods. Open space provides environmental amenities within the neighborhood it is located and may provide amenities in other neighborhoods (amenity spillover). We solve for equilibrium under various assumptions about amenity spillover effects and transportation costs in both open-city (with in- and out-migration) and closed-city (fixed population) versions of the model. Increasing open space tends to increase equilibrium housing density and price within a neighborhood. In an open-city model, open space provision also increases housing density and price in other neighborhoods if there is an amenity spillover effect. In a closed-city model, housing density and prices in other neighborhoods can decrease if the pull of the local amenity value is stronger than the push from reduced availability of developable land. We use numerical simulation to solve for the optimal pattern of open space in two examples: a simple symmetric case and a simulation based on the Twin Cities Metropolitan Area, Minnesota, USA. With no amenity spillover, it is optimal to provide the same amount of open space in all neighborhoods regardless of transportation cost. With amenity spillover effects and relatively high transportation cost, it is optimal to provide open space in a greenbelt at the edge of the city. With low transportation cost, open space is provided throughout the city with the exception of neighborhoods on the periphery of the city, where the majority of the population lives. A greenbelt still occurs but its location is inside the city.

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  • Tajibaeva, Liaila & Haight, Robert G. & Polasky, Stephen, 2008. "A discrete-space urban model with environmental amenities," Resource and Energy Economics, Elsevier, vol. 30(2), pages 170-196, May.
  • Handle: RePEc:eee:resene:v:30:y:2008:i:2:p:170-196

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    References listed on IDEAS

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    Cited by:

    1. Walid Oueslati & Seraphim Alvanides & Guy Garrod, 2015. "Determinants of urban sprawl in European cities," Urban Studies, Urban Studies Journal Limited, vol. 52(9), pages 1594-1614, July.
    2. Elena G. Irwin & Andrew M. Isserman & Maureen Kilkenny & Mark D. Partridge, 2010. "A Century of Research on Rural Development and Regional Issues," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(2), pages 522-553.
    3. Albers, Heidi J. & Ando, Amy W. & Batz, Michael, 2008. "Patterns of multi-agent land conservation: Crowding in/out, agglomeration, and policy," Resource and Energy Economics, Elsevier, vol. 30(4), pages 492-508, December.
    4. Thomas Coisnon & Walid Oueslati & Julien Salanié, 2012. "Urban sprawl occurrence under spatially varying agricultural bid-rent and amenities," Working Papers halshs-00748681, HAL.
    5. Chen, Yong & Irwin, Elena G. & Jayaprakash, Ciriyam, 2011. "Incorporating Spatial Complexity into Economic Models of Land Markets and Land Use Change," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 40(3), December.
    6. Dissanayake, Sahan T.M. & Önal, Hayri, 2011. "Amenity driven price effects and conservation reserve site selection: A dynamic linear integer programming approach," Ecological Economics, Elsevier, vol. 70(12), pages 2225-2235.
    7. Newburn, David & Berck, Peter, 2011. "Exurban development," Journal of Environmental Economics and Management, Elsevier, vol. 62(3), pages 323-336.
    8. Coisnon, Thomas & Oueslati, Walid & Salanié, Julien, 2014. "Urban sprawl occurrence under spatially varying agricultural amenities," Regional Science and Urban Economics, Elsevier, vol. 44(C), pages 38-49.
    9. Rémi Lemoy & Charles Raux & Pablo Jensen, 2016. "Exploring the polycentric city with multi-worker households: an agent-based microeconomic model," Post-Print hal-00602087, HAL.
    10. Ulrich Dilger, 2010. "The Rise Of The Green City In The U.S. - Sustainable Strategies And The Attraction Of Human Capital By Environmental Amenities," NEURUS papers neurusp137, NEURUS - Network of European and US Regional and Urban Studies.
    11. Chen, Yong & Irwin, Elena G. & Jayaprakash, Ciriyam, 2011. "An Agent-Based Model of Exurban Land Development," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103641, Agricultural and Applied Economics Association.
    12. Gianni Guastella & Stefano Pareglio & Paolo Sckokai, 2017. "A Spatial Econometric Analysis of Land Use Efficiency in Large and Small Municipalities," Working Papers 2017.03, Fondazione Eni Enrico Mattei.
    13. Elena G. Irwin, 2010. "New Directions For Urban Economic Models Of Land Use Change: Incorporating Spatial Dynamics And Heterogeneity," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 65-91.

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