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Urban sprawl and policy responses: a general equilibrium analysis of residential choice

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  • Birgit Bednar-Friedl
  • Olivia Koland
  • Karl Steininger

Abstract

This paper examines the driving forces for residential location choice of households in an urban area. To analyse the integrated choice of residence and of commuting, we extend a computable general equilibrium model of the core-periphery type for interregional housing market interactions and for effects on environmental quality. In the empirical part of the paper, we solve the model for a stylised urban centre and its surroundings, where urban sprawl leads to detrimental environmental effects. To internalise transport emissions, we compare the effects of a congestion fee and a spatial planning instrument. While both instruments reduce urban sprawl, they do so through different channels. Moreover, both policies lead to desirable environmental effects for the overall region, yet with different environmental impacts per region.

Suggested Citation

  • Birgit Bednar-Friedl & Olivia Koland & Karl Steininger, 2011. "Urban sprawl and policy responses: a general equilibrium analysis of residential choice," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 54(1), pages 145-168.
    • Handle: RePEc:taf:jenpmg:v:54:y:2011:i:1:p:145-168
    DOI: 10.1080/09640568.2010.502766
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    References listed on IDEAS

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    1. Charles van Marrewijk, 2005. "Geographical Economics and the Role of Pollution on Location," Tinbergen Institute Discussion Papers 05-018/2, Tinbergen Institute.
    2. Richard Baldwin & Rikard Forslid & Philippe Martin & Gianmarco Ottaviano & Frederic Robert-Nicoud, 2005. "Economic Geography and Public Policy," Economics Books, Princeton University Press, edition 1, number 7524.
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    1. Ilaria Zambon & Artemi Cerdà & Filippo Gambella & Gianluca Egidi & Luca Salvati, 2019. "Industrial Sprawl and Residential Housing: Exploring the Interplay between Local Development and Land-Use Change in the Valencian Community, Spain," Land, MDPI, vol. 8(10), pages 1-18, September.
    2. Doris A. Behrens & Olivia Koland & Ulrike Leopold-Wildburger, 2018. "Why local air pollution is more than daily peaks: modelling policies in a city in order to avoid premature deaths," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 26(2), pages 265-286, June.
    3. Pasquale Commendatore & Ingrid Kubin & Pascal Mossay & Iryna Sushko, 2017. "The role of centrality and market size in a four-region asymmetric new economic geography model," Journal of Evolutionary Economics, Springer, vol. 27(5), pages 1095-1131, November.
    4. Veronika Kulmer & Olivia Koland & Karl W. Steininger & Bernhard Fürst & Andreas Käfer, 2014. "The interaction of spatial planning and transport policy: A regional perspective on sprawl," The Journal of Transport and Land Use, Center for Transportation Studies, University of Minnesota, vol. 7(1), pages 57-77.

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