IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/95451.html

The Optimal Provision of Information and Communication Technologies in Smart Cities

Author

Listed:
  • Batabyal, Amitrajeet
  • Beladi, Hamid

Abstract

We exploit the public good attributes of information and communication technologies (ICTs) and theoretically analyze an aggregate economy of two smart cities in which ICTs are provided in either a decentralized or a centralized manner. We first determine the efficient ICT levels that maximize the aggregate surplus from the provision of ICTs in the two cities. Second, we compute the optimal level of ICT provision in the two cities in a decentralized regime in which spending on the ICTs is financed by a uniform tax on the city residents. Third, we ascertain the optimal level of ICT provision in the two cities in a centralized regime subject to equal provision of ICTs and cost sharing. Fourth, we show that if the two cities have the same preference for ICTs then centralization is preferable to decentralization as long as there is a spillover from the provision of ICTs. Finally, we show that if the two cities have dissimilar preferences for ICTs then centralization is preferable to decentralization as long as the spillover exceeds a certain threshold.

Suggested Citation

  • Batabyal, Amitrajeet & Beladi, Hamid, 2019. "The Optimal Provision of Information and Communication Technologies in Smart Cities," MPRA Paper 95451, University Library of Munich, Germany, revised 17 Jul 2019.
    • Handle: RePEc:pra:mprapa:95451
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/95451/1/MPRA_paper_95451.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Baron, Justus & Ménière, Yann & Pohlmann, Tim, 2014. "Standards, consortia, and innovation," International Journal of Industrial Organization, Elsevier, vol. 36(C), pages 22-35.
    2. Marks, Phillipa & Marks, Brian, 2007. "Spectrum Allocation, Spectrum Commons and Public Goods: the Role of the Market," MPRA Paper 6785, University Library of Munich, Germany.
    3. Reza Oladi, 2004. "Strategic quotas on foreign investment and migration," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 24(2), pages 289-306, August.
    4. Kourtit, Karima & Nijkamp, Peter & Steenbruggen, John, 2017. "The significance of digital data systems for smart city policy," Socio-Economic Planning Sciences, Elsevier, vol. 58(C), pages 13-21.
    5. Hindriks, Jean & Myles, Gareth D., 2013. "Intermediate Public Economics," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262018691, December.
    6. Rodrigo Firmino & Fabio Duarte, 2016. "Private video monitoring of public spaces: The construction of new invisible territories," Urban Studies, Urban Studies Journal Limited, vol. 53(4), pages 741-754, March.
    7. Grazia Concilio & Luciano Bonis & Jesse Marsh & Ferdinando Trapani, 2013. "Urban Smartness: Perspectives Arising in the Periphéria Project," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 4(2), pages 205-216, June.
    8. Tuba Bakıcı & Esteve Almirall & Jonathan Wareham, 2013. "A Smart City Initiative: the Case of Barcelona," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 4(2), pages 135-148, June.
    9. Alois Paulin, 2016. "Informating Smart Cities Governance? Let Us First Understand the Atoms!," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 7(2), pages 329-343, June.
    10. van den Buuse, Daniel & Kolk, Ans, 2019. "An exploration of smart city approaches by international ICT firms," Technological Forecasting and Social Change, Elsevier, vol. 142(C), pages 220-234.
    11. Jean-Marc Coicaud, 2016. "Administering and Governing with Technology: The Question of Information Communication Technology and E-Governance," Global Policy, London School of Economics and Political Science, vol. 7(2), pages 296-300, May.
    12. Amitrajeet A. Batabyal & Peter Nijkamp, 2019. "Creative capital, information and communication technologies, and economic growth in smart cities," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 28(2), pages 142-155, February.
    13. Melo, Sandra & Macedo, Joaquim & Baptista, Patrícia, 2017. "Guiding cities to pursue a smart mobility paradigm: An example from vehicle routing guidance and its traffic and operational effects," Research in Transportation Economics, Elsevier, vol. 65(C), pages 24-33.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhen Chu & Mingwang Cheng & Ning Neil Yu, 2022. "Development potential of Chinese smart cities and its spatio‐temporal pattern: A new hybrid MADM method using combination weight," Growth and Change, Wiley Blackwell, vol. 53(4), pages 1546-1566, December.
    2. Amitrajeet A. Batabyal & Hamid Beladi, 2023. "Centralized versus Decentralized Cleanup of River Water Pollution: An Application to the Ganges," Games, MDPI, vol. 14(5), pages 1-12, October.
    3. Batabyal, Amitrajeet & Yoo, Seung Jick, 2019. "Heterogeneity and the Provision of a Public Good in Leading and Lagging Regions," MPRA Paper 96812, University Library of Munich, Germany, revised 15 Sep 2019.
    4. Xi, Xun & Xi, Baoxing & Miao, Chenglin & Yu, Rongjian & Xie, Jie & Xiang, Rong & Hu, Feng, 2022. "Factors influencing technological innovation efficiency in the Chinese video game industry: Applying the meta-frontier approach," Technological Forecasting and Social Change, Elsevier, vol. 178(C).
    5. Li, Rui & Lu, Yi, 2025. "Toward a resilient and smart city: Analysis on enablers for smart city resilience using an integrated DEMATEL–ISM–ANP method," Technological Forecasting and Social Change, Elsevier, vol. 215(C).
    6. Xingneng Xia & Ruoxi Yu & Sheng Zhang, 2023. "Evaluating the Impact of Smart City Policy on Carbon Emission Efficiency," Land, MDPI, vol. 12(7), pages 1-18, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kummitha, Rama Krishna Reddy, 2019. "Smart cities and entrepreneurship: An agenda for future research," Technological Forecasting and Social Change, Elsevier, vol. 149(C).
    2. Parul Gupta & Sumedha Chauhan & M. P. Jaiswal, 2019. "Classification of Smart City Research - a Descriptive Literature Review and Future Research Agenda," Information Systems Frontiers, Springer, vol. 21(3), pages 661-685, June.
    3. André Luis Azevedo Guedes & Jeferson Carvalho Alvarenga & Maurício Dos Santos Sgarbi Goulart & Martius Vicente Rodriguez y Rodriguez & Carlos Alberto Pereira Soares, 2018. "Smart Cities: The Main Drivers for Increasing the Intelligence of Cities," Sustainability, MDPI, vol. 10(9), pages 1-19, August.
    4. Marchesani, Filippo & Masciarelli, Francesca & Bikfalvi, Andrea, 2023. "Smart city as a hub for talent and innovative companies: Exploring the (dis) advantages of digital technology implementation in cities," Technological Forecasting and Social Change, Elsevier, vol. 193(C).
    5. Tao Song & Jianming Cai & Teresa Chahine & Le Li, 2021. "Towards Smart Cities by Internet of Things (IoT)—a Silent Revolution in China," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(2), pages 1-17, June.
    6. Marchesani, Filippo & Ceci, Federica, 2025. "A quadruple helix view on smart city: Exploring the effect of internal and external open innovation on public services digitalization," Technovation, Elsevier, vol. 139(C).
    7. Hindriks, Jean & Serse, Valerio, 2022. "The incidence of VAT reforms in electricity markets: Evidence from Belgium," International Journal of Industrial Organization, Elsevier, vol. 80(C).
    8. Mariusz J. Ligarski & Tomasz Owczarek, 2024. "Preparing Quality of Life Surveys Versus Using Information for Sustainable Development: The Example of Polish Cities," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 173(3), pages 765-782, July.
    9. Baron, Justus, 2020. "Counting standard contributions to measure the value of patent portfolios - A tale of apples and oranges," Telecommunications Policy, Elsevier, vol. 44(3).
    10. Sugata Marjit & Biswajit Mandal, 2016. "International Trade, Migration and Unemployment – The Role of Informal Sector," Economics and Politics, Wiley Blackwell, vol. 28(1), pages 8-22, March.
    11. Elisa Frutos-Bernal & Ángel Martín del Rey & Irene Mariñas-Collado & María Teresa Santos-Martín, 2022. "An Analysis of Travel Patterns in Barcelona Metro Using Tucker3 Decomposition," Mathematics, MDPI, vol. 10(7), pages 1-17, March.
    12. Amitrajeet A. Batabyal & Hamid Beladi, 2022. "The Response of Creative Class Members to Regions Vying to Attract Them With Subsidies," International Regional Science Review, , vol. 45(5), pages 581-600, September.
    13. Justus Baron & Daniel F. Spulber, 2018. "Technology Standards and Standard Setting Organizations: Introduction to the Searle Center Database," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 27(3), pages 462-503, September.
    14. Charles Delmotte, 2021. "Simple rules and the Political Economy of Income Taxation: the strengths of a uniform expense rule," European Journal of Law and Economics, Springer, vol. 52(2), pages 323-339, December.
    15. Marjit, Sugata & Kar, Saibal & Hazari, Bharat R., 2013. "Emigration, unemployment and welfare – The role of non-traded sector," The North American Journal of Economics and Finance, Elsevier, vol. 24(C), pages 298-305.
    16. Samuel Ferey & Pierre Dehez, 2016. "Multiple Causation, Apportionment, and the Shapley Value," The Journal of Legal Studies, University of Chicago Press, vol. 45(1), pages 143-171.
    17. Hindriks, Jean & Peralta, Susana & Weber, Shlomo, 2008. "Competing in taxes and investment under fiscal equalization," Journal of Public Economics, Elsevier, vol. 92(12), pages 2392-2402, December.
    18. Choi, E. Kwan & Choi, Jai-Young, 2013. "Financial advantage, outsourcing and FDI under wage uncertainty," The North American Journal of Economics and Finance, Elsevier, vol. 24(C), pages 260-267.
    19. Thisse, Jacques-François & Pieretti, Patrice & Zanaj, Skerdilajda, 2011. "Tax havens or safe havens," CEPR Discussion Papers 8570, C.E.P.R. Discussion Papers.
    20. Vieira, Fabiana C. & Ferreira, Fernando A.F. & Govindan, Kannan & Ferreira, Neuza C.M.Q.F. & Banaitis, Audrius, 2022. "Measuring urban digitalization using cognitive mapping and the best worst method (BWM)," Technology in Society, Elsevier, vol. 71(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories
    • R50 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - General
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:95451. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.