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Green Cities? Urbanization, Trade and the Environment

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  • Borck, Rainald

    (University of Potsdam)

  • Pflüger, Michael P.

    (University of Würzburg)

Abstract

This paper establishes a simple theoretical framework which comprises key forces that shape the structure and interrelation of cities to study the interdependencies between urban evolution and the environment. We focus on the potential of the unfettered market forces to economize on emissions. A key finding is that these forces alone may suffice to generate an urban Environmental Kuznets Curve. In particular, reducing trade costs increases per capita incomes and generates a U-shaped evolution of emissions in the process of agglomeration and redispersion. Another key result is that agglomeration per se is typically not a boon for the environment, as total emissions in the total city system are likely to rise.

Suggested Citation

  • Borck, Rainald & Pflüger, Michael P., 2015. "Green Cities? Urbanization, Trade and the Environment," IZA Discussion Papers 9104, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp9104
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Borck, Rainald & Schrauth, Philipp, 2024. "Urban pollution: A global perspective," Journal of Environmental Economics and Management, Elsevier, vol. 126(C).
    2. Rainald Borck & Takatoshi Tabuchi, 2019. "Pollution and city size: can cities be too small?," Journal of Economic Geography, Oxford University Press, vol. 19(5), pages 995-1020.
    3. Borck, Rainald, 2014. "Will skyscrapers save the planet?," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100566, Verein für Socialpolitik / German Economic Association.
    4. Pflüger, Michael, 2021. "City size, pollution and emission policies," Journal of Urban Economics, Elsevier, vol. 126(C).
    5. Carozzi, Felipe & Roth, Sefi, 2023. "Dirty density: Air quality and the density of American cities," Journal of Environmental Economics and Management, Elsevier, vol. 118(C).
    6. Rainald Borck & Jan K. Brueckner, 2018. "Optimal Energy Taxation in Cities," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 5(2), pages 481-516.
    7. Lafourcade, Miren & Blaudin de Thé, Camille & Carantino, Benjamin, 2018. "The Carbon `Carprint' of Suburbanization: New Evidence from French Cities," CEPR Discussion Papers 13086, C.E.P.R. Discussion Papers.
    8. Borck, Rainald, 2016. "Will skyscrapers save the planet? Building height limits and urban greenhouse gas emissions," Regional Science and Urban Economics, Elsevier, vol. 58(C), pages 13-25.
    9. Blaudin de Thé, Camille & Carantino, Benjamin & Lafourcade, Miren, 2021. "The carbon ‘carprint’ of urbanization: New evidence from French cities," Regional Science and Urban Economics, Elsevier, vol. 89(C).
    10. Rainald Borck, 2019. "Bevölkerungsdichte, Stadtstruktur und Umweltverschmutzung [Population density, urban structure and air pollution]," Zeitschrift für Immobilienökonomie (German Journal of Real Estate Research), Springer;Gesellschaft für Immobilienwirtschaftliche Forschung e. V., vol. 5(1), pages 161-171, November.
    11. Rainald Borck & Peter Mulder, 2024. "Energy policies and pollution in two developing country cities: A quantitative model," CEPA Discussion Papers 78, Center for Economic Policy Analysis.
    12. Carozzi, Felipe & Roth, Sefi, 2023. "Dirty density: air quality and the density of American cities," LSE Research Online Documents on Economics 117385, London School of Economics and Political Science, LSE Library.
    13. Tao Zhang & Lin Li, 2021. "Research on temporal and spatial variations in the degree of coupling coordination of tourism–urbanization–ecological environment: a case study of Heilongjiang, China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(6), pages 8474-8491, June.
    14. Kurita, Kenichi & Managi, Shunsuke, 2023. "New economic geography model with natural capital and migration congestion effect," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 635-641.
    15. Borck, Rainald & Schrauth, Philipp, 2021. "Population density and urban air quality," Regional Science and Urban Economics, Elsevier, vol. 86(C).
    16. Wu, JunJie & Segerson, Kathleen & Wang, Chunhua, 2023. "Is environmental regulation the answer to pollution problems in urbanizing economies?," Journal of Environmental Economics and Management, Elsevier, vol. 117(C).
    17. Adou, Niango Sika Antoine Brice, 2020. "Trade Openness and Employment, Implications on Urbanisation in Sub-Saharan Africa," MPRA Paper 104317, University Library of Munich, Germany.
    18. Michael Pflüger, 2020. "City Size, Pollution and Emission Policies," CESifo Working Paper Series 8448, CESifo.
    19. Yohanes Boni & Wa Ode Rachmasari Ariani & Hasddin Hasddin, 2023. "Study of Environmental Economic Performance According to Energy Use and CO2 Emissions, Air Quality, and Government Policies to Achieve SDGs in Baubau City," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 452-462, November.

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    More about this item

    Keywords

    city structure; city systems; environmental pollution; global warming; Environmental Kuznets Curve; trade costs; commuting costs; housing;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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