Urban sprawl and policy responses: a general equilibrium analysis of residential choice
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.
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Volume (Year): 54 (2011)
Issue (Month): 5 ()
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