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An Energy-centric Theory of Agglomeration

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  • Juan Moreno-Cruz
  • M. Scott Taylor

Abstract

This paper sets out a simple spatial model of energy exploitation to ask how the location and productivity of energy resources affects the distribution of economic activity across geographic space. By combining elements from energy economics and economic geography we link the productivity of energy resources to the incentives for economic activity to agglomerate. We find a novel scaling law links the productivity of energy resources to population sizes, while rivers and roads effectively magnify productivity. We show how our theory's predictions concerning a single core, aggregate to predictions over regional landscapes and city size distributions at the country level.

Suggested Citation

  • Juan Moreno-Cruz & M. Scott Taylor, 2016. "An Energy-centric Theory of Agglomeration," NBER Working Papers 22964, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:22964
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    1. Moreno-Cruz, Juan & Taylor, M. Scott, 2020. "Food, Fuel and the Domesday Economy," European Economic Review, Elsevier, vol. 128(C).

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    More about this item

    JEL classification:

    • N0 - Economic History - - General
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General

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