IDEAS home Printed from https://ideas.repec.org/p/tin/wpaper/20000077.html

Externalities in Urban Sustainability

Author

Listed:
  • Erik T. Verhoef

  • Peter Nijkamp

    (Vrije Universiteit Amsterdam)

Abstract

This paper studies urban sustainability from the perspective ofexternalities. We develop a general spatialequilibrium model of a monocentric city, in which two types ofexternalities occur. On the one hand, pollution inthe industrial centre leads to a spatially differentiateddeterioration of the environmental quality in the residentialarea. On the other hand, the existence of the city is explained byagglomeration economies, represented as simpleMarshallian external benefits in production. We investigate free-market versus first-best and second-best optimalspatial equilibria, and conclude that the pursuit of environmentalgoals may sometimes come at the expense ofreduced agglomeration economies, but may actually sometimes alsostimulate these economies.

Suggested Citation

  • Erik T. Verhoef & Peter Nijkamp, 2000. "Externalities in Urban Sustainability," Tinbergen Institute Discussion Papers 00-077/3, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20000077
    as

    Download full text from publisher

    File URL: https://papers.tinbergen.nl/00077.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. E T Verhoef, 1994. "Efficiency and Equity in Externalities: A Partial Equilibrium Analysis," Environment and Planning A, , vol. 26(3), pages 361-382, March.
    2. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64(5), pages 416-416.
    3. Abdel-Rahman, H. M., 1988. "Product differentiation, monopolistic competition and city size," Regional Science and Urban Economics, Elsevier, vol. 18(1), pages 69-86, February.
    4. Edward L. Glaeser, 1998. "Are Cities Dying?," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 139-160, Spring.
    5. Sullivan, Arthur M., 1986. "A general equilibrium model with agglomerative economies and decentralized employment," Journal of Urban Economics, Elsevier, vol. 20(1), pages 55-74, July.
    6. Kishimoto, Kazuo, 1991. "Coexistence and segregation of two groups in a metropolitan area through externalities," Journal of Urban Economics, Elsevier, vol. 30(3), pages 293-309, November.
    7. Fujita,Masahisa, 1991. "Urban Economic Theory," Cambridge Books, Cambridge University Press, number 9780521396455, January.
    8. Rose-Ackerman, Susan, 1975. "Racism and urban structure," Journal of Urban Economics, Elsevier, vol. 2(1), pages 85-103, January.
    9. Oates, Wallace E, 1983. "The Regulation of Externalities: Efficient Behavior by Sources and Victims," Public Finance = Finances publiques, , vol. 38(3), pages 362-375.
    10. Yinger, John, 1992. "An analysis of the efficiency of urban residential structure, with an application to racial integration," Journal of Urban Economics, Elsevier, vol. 31(3), pages 388-407, May.
    11. Camagni, Roberto & Capello, Roberta & Nijkamp, Peter, 1998. "Towards sustainable city policy: an economy-environment technology nexus," Ecological Economics, Elsevier, vol. 24(1), pages 103-118, January.
    12. Arnott, Richard, 1979. "Optimal city size in a spatial economy," Journal of Urban Economics, Elsevier, vol. 6(1), pages 65-89, January.
    13. Kanemoto, Yoshitsugu, 1976. "Optimum, market and second-best land use patterns in a von Thunen city with congestion," Regional Science and Urban Economics, Elsevier, vol. 6(1), pages 23-32, March.
    14. Jeroen C.J.M. van den Bergh (ed.), 1999. "Handbook of Environmental and Resource Economics," Books, Edward Elgar Publishing, number 801, August.
    15. Tauchen, Helen, 1981. "The possibility of positive rent gradients reconsidered," Journal of Urban Economics, Elsevier, vol. 9(2), pages 165-172, March.
    16. Yitzhak Oron & David Pines & Eytan Sheshinski, 1973. "Optimum vs. Equilibrium Land Use Pattern and Congestion Toll," Bell Journal of Economics, The RAND Corporation, vol. 4(2), pages 619-636, Autumn.
    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. Moriki Hosoe & Tohru Naito, 2006. "Trans‐boundary pollution transmission and regional agglomeration effects," Papers in Regional Science, Wiley Blackwell, vol. 85(1), pages 99-120, March.

    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. Verhoef, Erik T. & Nijkamp, Peter, 2002. "Externalities in urban sustainability: Environmental versus localization-type agglomeration externalities in a general spatial equilibrium model of a single-sector monocentric industrial city," Ecological Economics, Elsevier, vol. 40(2), pages 157-179, February.
    2. Eric A. Hanushek & Kuzey Yilmaz, 2007. "Schools and Location: Tiebout, Alonso, and Government Policy," NBER Working Papers 12960, National Bureau of Economic Research, Inc.
    3. Oscar A. Alfonso Roa, 2014. "Los desequilibrios territoriales en Colombia. Estudios sobre el sistema de ciudades y el polimetropolitanismo," Books, Universidad Externado de Colombia, Facultad de Economía, edition 1, volume 1, number 67.
    4. Boitier, Vincent & Auvray, Emmanuel, 2021. "Schelling paradox in a system of cities," Mathematical Social Sciences, Elsevier, vol. 113(C), pages 68-88.
    5. Vicente Royuela & Miguel Vargas, 2010. "Residential Segregation: A Literature Review," Working Papers 7, Facultad de Economía y Empresa, Universidad Diego Portales.
    6. Eric Hanushek & Kuzey Yilmaz, 2010. "Household Location and Schools in Metropolitan Areas with Heterogeneous Suburbs: Tiebout, Alonso, and Government Policy," Discussion Papers 09-012, Stanford Institute for Economic Policy Research.
    7. Erik Verhoef & Peter Nijkamp, 2008. "Urban Environmental Externalities, Agglomeration Forces, and the Technological ‘Deus ex Machina’," Environment and Planning A, , vol. 40(4), pages 928-947, April.
    8. Yasin Sunak & Reinhard Madlener, 2012. "The Impact of Wind Farms on Property Values: A Geographically Weighted Hedonic Pricing Model," FCN Working Papers 3/2012, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    9. Määttänen, Niku & Terviö, Marko, 2014. "Income distribution and housing prices: An assignment model approach," Journal of Economic Theory, Elsevier, vol. 151(C), pages 381-410.
    10. Fabien Candau, 2011. "Heterogeneous Immigration, Segregation and Trade," Review of Economics & Finance, Better Advances Press, Canada, vol. 1, pages 73-86, February.
    11. Albouy, David & Behrens, Kristian & Robert-Nicoud, Frédéric & Seegert, Nathan, 2019. "The optimal distribution of population across cities," Journal of Urban Economics, Elsevier, vol. 110(C), pages 102-113.
    12. Robert Dekle & Jonathan Eaton, 1994. "Agglomertion and the Price of Land: Evidence from the Prefectures," Boston University - Institute for Economic Development 47, Boston University, Institute for Economic Development.
    13. Fujita, Masahisa & Thisse, Jacques-François, 2009. "New Economic Geography: An appraisal on the occasion of Paul Krugman's 2008 Nobel Prize in Economic Sciences," Regional Science and Urban Economics, Elsevier, vol. 39(2), pages 109-119, March.
    14. Thierry Verdier & Yves Zenou, 2004. "Racial Beliefs, Location, And The Causes Of Crime," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(3), pages 731-760, August.
    15. Gaigné, Carl & Riou, Stéphane & Thisse, Jacques-François, 2016. "How to make the metropolitan area work? Neither big government, nor laissez-faire," Journal of Public Economics, Elsevier, vol. 134(C), pages 100-113.
    16. Glazer, Amihai & Kanniainen, Vesa & Poutvaara, Panu, 2008. "Income taxes, property values, and migration," Journal of Public Economics, Elsevier, vol. 92(3-4), pages 915-923, April.
    17. Alan Collins, 2007. "Making Truly Competitive Cities – On The Appropriate Role For Local Government," Economic Affairs, Wiley Blackwell, vol. 27(3), pages 75-80, September.
    18. Galarraga, Ibon & González-Eguino, Mikel & Markandya, Anil, 2011. "Willingness to pay and price elasticities of demand for energy-efficient appliances: Combining the hedonic approach and demand systems," Energy Economics, Elsevier, vol. 33(S1), pages 66-74.
    19. Jacques-François Thisse & Gilles Duranton, 1996. "La politique foncière dans une économie spatiale," Revue Économique, Programme National Persée, vol. 47(2), pages 227-261.
    20. Sinan Sarpça & Kuzey Yılmaz & Eric Hanushek, 2007. "School Choice: Traditional Mechanisms and Extending the Poor's Ability to Choose," Koç University-TUSIAD Economic Research Forum Working Papers 0709, Koc University-TUSIAD Economic Research Forum.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

    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:tin:wpaper:20000077. 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: Tinbergen Office +31 (0)10-4088900 (email available below). General contact details of provider: https://edirc.repec.org/data/tinbenl.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.