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Pollution externalities versus agglomeration economies: is urban toll a relevant environmental tool?

Author

Listed:
  • Rémy Le Boennec

    (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - IEMN-IAE Nantes - Institut d'Économie et de Management de Nantes - Institut d'Administration des Entreprises - Nantes - UN - Université de Nantes)

Abstract

Using an urban economic model with an endogenous centre where agents freely choose land quantities, we prove to what extent policies aimed at abating pollution generated by working households' commuting trips involve a better control of urban sprawl as a positive side-effect. After the eco-tax has been applied to households by a local planner in the form of a linear urban toll, agglomeration economies which incited firms to group together in the Central Business District (CBD) keep on working as a positive externality. Under certain conditions, they are even strengthened.

Suggested Citation

  • Rémy Le Boennec, 2015. "Pollution externalities versus agglomeration economies: is urban toll a relevant environmental tool?," Post-Print hal-01657139, HAL.
    • Handle: RePEc:hal:journl:hal-01657139
    as

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