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Equilibrium and first-best city with endogenous exposure to local air pollution from traffic

Author

Listed:
  • Mirjam Schindler

    (IPSE, Université du Luxembourg)

  • Geoffrey Caruso

    (IPSE, Université du Luxembourg)

  • Pierre M. Picard

    (CREA, Université du Luxembourg, CORE Université catholique de Louvain)

Abstract

Exposure to urban traffic-induced air pollution is a major health concern of cities. This paper analyzes the urban structure when localized pollution exposure arises from commuting traffic and investigates the feedback effect of endogenous pollution on residential choices. The presence of stronger traffic-induced air pollution exposure reduces the geographical extent and the population of cities. Land rents fall with distance from the city center while population densities may be non-monotonic. Cleaner vehicle technolo- gies reduce pollution exposure everywhere, increase population and density everywhere and do not affect the spatial extent of the city. The paper com- pares the urban equilibrium with the first-best. The first-best structure is a less expanded city with higher densities at the center and lower densities at the fringe.

Suggested Citation

  • Mirjam Schindler & Geoffrey Caruso & Pierre M. Picard, 2016. "Equilibrium and first-best city with endogenous exposure to local air pollution from traffic," DEM Discussion Paper Series 16-08, Department of Economics at the University of Luxembourg.
  • Handle: RePEc:luc:wpaper:16-08
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    File URL: https://hdl.handle.net/10993/28799
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    Cited by:

    1. Kyriakopoulou, Efthymia & Picard, Pierre M., 2021. "On the design of sustainable cities: Local traffic pollution and urban structure," Journal of Environmental Economics and Management, Elsevier, vol. 107(C).
    2. Basu, Arnab K. & Byambasuren, Tsenguunjav & Chau, Nancy H. & Khanna, Neha, 2020. "Cooking Fuel Choice, Indoor Air Quality and Child Mortality in India," GLO Discussion Paper Series 560, Global Labor Organization (GLO).
    3. 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.
    4. Dorothée Brécard & Rémy Le Boennec & Frédéric Salladarré, 2018. "Accessibility, local pollution and housing prices. Evidence from Nantes Métropole, France," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 500-501-5, pages 97-115.
    5. Borck, Rainald & Schrauth, Philipp, 2021. "Population density and urban air quality," Regional Science and Urban Economics, Elsevier, vol. 86(C).
    6. Pflüger, Michael P., 2018. "City Size, Pollution and Emission Policies," IZA Discussion Papers 11354, Institute of Labor Economics (IZA).
    7. Ioannis Tikoudis & Walid Oueslati, 2023. "The future of transport-related emissions in dense urban areas: an analysis of various policy scenarios with MOLES," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 25(2), pages 205-268, April.
    8. Pflüger, Michael, 2021. "City size, pollution and emission policies," Journal of Urban Economics, Elsevier, vol. 126(C).
    9. Domon, Shohei & Hirota, Mayu & Kono, Tatsuhito & Managi, Shunsuke & Matsuki, Yusuke, 2022. "The long-run effects of congestion tolls, carbon tax, and land use regulations on urban CO2 emissions," Regional Science and Urban Economics, Elsevier, vol. 92(C).
    10. William Brock & Anastasios Xepapadeas, 2020. "Spatial Environmental and Resource Economics," DEOS Working Papers 2002, Athens University of Economics and Business.
    11. Mirjam Schindler & Geoffrey Caruso, 2020. "Emerging urban form – Emerging pollution: Modelling endogenous health and environmental effects of traffic on residential choice," Environment and Planning B, , vol. 47(3), pages 437-456, March.
    12. Schindler, Mirjam & Wang, Judith Y.T. & Connors, Richard D., 2021. "A two-stage residential location and transport mode choice model with exposure to traffic-induced air pollution," Journal of Transport Geography, Elsevier, vol. 93(C).
    13. Michael Pflüger, 2020. "City Size, Pollution and Emission Policies," CESifo Working Paper Series 8448, CESifo.

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    More about this item

    Keywords

    residential choice; traffic-induced air pollution; localized pollution exposure; urban structure;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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