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Compact or Spread-Out Cities: Urban Planning, Taxation, and the Vulnerability to Transportation Shocks

Author

Listed:
  • François Gusdorf

    (CIRED)

  • Stéphane Hallegatte

    (Centre International de Recherche sur l'Environnement et le Développement Ecole Nationale de la Météorologie)

Abstract

This paper shows that cities made more compact by transportation taxation are more robust than spread-out cities to shocks in transportation costs. Such a shock, indeed, entails negative transition effects that are caused by housing infrastructure inertia and are magnified in low-density cities. Distortions due to a transportation tax, however, have in absence of shock detrimental consequences that need to be accounted for. The range of beneficial tax levels can, therefore, be identified as a function of the possible magnitude of future shocks in transportation costs. These taxation levels, which can reach significant values, reduce city vulnerability and prevent lock-ins in under-optimal situations.

Suggested Citation

  • François Gusdorf & Stéphane Hallegatte, 2007. "Compact or Spread-Out Cities: Urban Planning, Taxation, and the Vulnerability to Transportation Shocks," Working Papers 2007.17, Fondazione Eni Enrico Mattei.
  • Handle: RePEc:fem:femwpa:2007.17
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Hallegatte, Stephane & Heal, Geoffrey & Fay, Marianne & Treguer, David, 2011. "From growth to green growth -- a framework," Policy Research Working Paper Series 5872, The World Bank.
    2. repec:wbk:wbpubs:15790 is not listed on IDEAS
    3. Strand, Jon & Miller, Sebastian & Siddiqui, Sauleh, 2011. "Infrastructure investments under uncertainty with the possibility of retrofit : theory and simulations," Policy Research Working Paper Series 5516, The World Bank.
    4. Lampin, Laure B.A. & Nadaud, Franck & Grazi, Fabio & Hourcade, Jean-Charles, 2013. "Long-term fuel demand: Not only a matter of fuel price," Energy Policy, Elsevier, vol. 62(C), pages 780-787.
    5. Strand, Jon & Miller, Sebastian & Siddiqui, Sauleh, 2014. "Long-run carbon emission implications of energy-intensive infrastructure investments with a retrofit option," Energy Economics, Elsevier, vol. 46(C), pages 308-317.
    6. Viguie, V. & Hallegatte, S., 2014. "Urban infrastructure investment and rent-capture potentials," Policy Research Working Paper Series 7067, The World Bank.
    7. Mörtberg, Ulla & Goldenberg, Romain & Kalantari, Zahra & Kordas, Olga & Deal, Brian & Balfors, Berit & Cvetkovic, Vladimir, 2017. "Integrating ecosystem services in the assessment of urban energy trajectories – A study of the Stockholm Region," Energy Policy, Elsevier, vol. 100(C), pages 338-349.
    8. repec:hal:wpaper:hal-01136199 is not listed on IDEAS
    9. Felix Creutzig & Rainer Mühlhoff & Julia Römer, 2012. "One Planet Mobility - Transforming Cities towards Low-Carbon Mobility," Working Papers 1, Department of Climate Change Economics, TU Berlin, revised Feb 2012.
    10. Vincent Viguie & Stéphane Hallegatte & Julie Rozenberg, 2014. "Downscaling long term socio-economic scenarios at city scale: A case study on Paris," Post-Print hal-01136217, HAL.
    11. Viguié, Vincent & Hallegatte, Stéphane & Rozenberg, Julie, 2014. "Downscaling long term socio-economic scenarios at city scale: A case study on Paris," Technological Forecasting and Social Change, Elsevier, vol. 87(C), pages 305-324.

    More about this item

    Keywords

    Urban transportation; Housing; Inertia; Vulnerability; Transportation Taxation;

    JEL classification:

    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

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