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Urban Structure and Environmental Externalities

  • Regnier Camille
  • Sophie Legras
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    The objective of this paper is to analyze policy design for air pollution management in the spatial context of urban development. We base our analysis on the paper of Ogawa and Fujita (1982), which offers a proper theoretical framework of non-monocentric urban land use using static microeconomic theory where the city structure is endogenous. First, we show that when households internalize industrial pollution in their residential location choice, spatialization within the city is reinforced. This impacts directly the emissions of greenhouse gases from commuting. Then, we analyze policy instruments in order to achieve optimal land use pattern when the policy maker has to manage both industrial and commuting related polluting emissions, that interact through the land market.

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    File URL: http://www2.dijon.inra.fr/cesaer/workingpapers/RePEc/ceo/wpaper/wp2014_2.pdf
    File Function: First version
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    Paper provided by INRA UMR CESAER, Centre d'’Economie et Sociologie appliquées à l'’Agriculture et aux Espaces Ruraux in its series INRA UMR CESAER Working Papers with number 2014/2.

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    Length: 29
    Date of creation: 05 May 2014
    Date of revision:
    Handle: RePEc:ceo:wpaper:48
    Contact details of provider: Postal: UMR CESAER 26 bd Docteur Petitjean 21000 Dijon France
    Phone: +33380772580
    Fax: +33380772571
    Web page: http://www2.dijon.inra.fr/cesaer
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    1. 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.
    2. 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.
    3. Moslener, Ulf & Requate, Till, 2005. "Optimal Abatement in Dynamic Multipollutant Problems when Pollutants can be Complements or Substitutes," Economics Working Papers 2005,03, Christian-Albrechts-University of Kiel, Department of Economics.
    4. Erik T. Verhoef & Peter Nijkamp, 2003. "Externalities in the Urban Economy," Tinbergen Institute Discussion Papers 03-078/3, Tinbergen Institute.
    5. Robson, Arthur J., 1976. "Two models of urban air pollution," Journal of Urban Economics, Elsevier, vol. 3(3), pages 264-284, July.
    6. 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.
    7. 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.
    8. Verhoef, Erik T. & Nijkamp, Peter, 2002. "Externalities in urban sustainability: Environmental versus localization-type agglomeration externalities in a general spatial equilibrium model of a single-sector monocentric industrial city," Ecological Economics, Elsevier, vol. 40(2), pages 157-179, February.
    9. Moslener, Ulf & Requate, Till, 2009. "The dynamics of optimal abatement strategies for multiple pollutants--An illustration in the Greenhouse," Ecological Economics, Elsevier, vol. 68(5), pages 1521-1534, March.
    10. Efthymia Kyriakopoulou & Anastasios Xepapadeas, 2011. "Spatial location decisions under environmental policy and housing externalities," Environmental Economics and Policy Studies, Society for Environmental Economics and Policy Studies - SEEPS, vol. 13(3), pages 195-217, September.
    11. Xiaolin Ren & Don Fullerton & John B. Braden, 2010. "Optimal Taxation of Externalities Interacting through Markets: A Theoretical General Equilibrium Analysis," CESifo Working Paper Series 3259, CESifo Group Munich.
    12. Erik T. Verhoef & Peter Nijkamp, 2003. "Externalities in the Urban Economy," Tinbergen Institute Discussion Papers 03-078/3, Tinbergen Institute.
    13. Legras, Sophie, 2011. "Incomplete model specification in a multi-pollutants setting: The case of climate change and acidification," Resource and Energy Economics, Elsevier, vol. 33(3), pages 527-543, September.
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