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Land use dynamics and the environment

We build a model to study optimal land use, encompassing land use activities, pollution and climate change. This benchmark set-up allows us to identify the spatial drivers behind the interaction between land use and the environment. Pollution generates local and global damages since it flows across locations following a Gaussian Plume. In constrast to the previous literature on spatial dynamics, we prove that the social optimum problem is well-posed, i.e., the solution exists and is unique. We close the paper with a numerical analysis which illustrates the richness of our model, and its global dynamics. We study the different drivers of spatial heterogeneity. In particular, abatement technology stands out as a fundamental ingredient to achieve steady state solutions, which are compatible with the emergence of spatial patterns.

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Paper provided by Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne in its series Documents de travail du Centre d'Economie de la Sorbonne with number 12012.

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Length: 34 pages
Date of creation: Mar 2012
Date of revision:
Handle: RePEc:mse:cesdoc:12012
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  3. Raouf Boucekkine & Carmen Camacho & Giorgio Fabbri, 2013. "Spatial dynamics and convergence: The spatial AK model," Documents de travail du Centre d'Economie de la Sorbonne 13047, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
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  11. Weitzman, Martin L., 2002. "Landing Fees vs Harvest Quotas with Uncertain Fish Stocks," Journal of Environmental Economics and Management, Elsevier, vol. 43(2), pages 325-338, March.
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  16. Brock, William & Xepapadeas, Anastasios, 2008. "Diffusion-induced instability and pattern formation in infinite horizon recursive optimal control," Journal of Economic Dynamics and Control, Elsevier, vol. 32(9), pages 2745-2787, September.
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  22. Desmet, Klaus & Ghani, Ejaz & O'Connell, Stephen & Rossi-Hansberg, Esteban, 2012. "The spatial development of India," Policy Research Working Paper Series 6060, The World Bank.
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  32. Xepapadeas, Anastasios, 2010. "The spatial dimension in environmental and resource economics," Environment and Development Economics, Cambridge University Press, vol. 15(06), pages 747-758, December.
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  36. Chakir, Raja & Le Gallo, Julie, 2013. "Predicting land use allocation in France: A spatial panel data analysis," Ecological Economics, Elsevier, vol. 92(C), pages 114-125.
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