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Urban Sustainability, Agglomeration Forces and the Technological Deus ex Machina

Author

Listed:
  • Erik Verhoef

    (Vrije Universiteit Amsterdam)

  • Peter Nijkamp

    (Vrije Universiteit Amsterdam)

  • Joe Daniel

    (University of Delaware, USA)

Abstract

This paper aims to analyze and depict urban equilibrium from the perspective of acomplex force field between (positive) agglomeration economies and (negative) environmentalexternalities. Based on a simplified representation of a linear urban economy, anarchetypical model based on general equilibrium principles is designed and its propertiesare investigated by using numerical simulations. The model includes a spacious industrial centrein which agglomeration externalities are differentiated over space, and a residential area thatsuffers from pollution which too is differentiated over space. Environmental technology choiceby firms is endogenized. This model is able to generate interesting and sometimescounter-intuitive results for the city under consideration.

Suggested Citation

  • Erik Verhoef & Peter Nijkamp & Joe Daniel, 2001. "Urban Sustainability, Agglomeration Forces and the Technological Deus ex Machina," Tinbergen Institute Discussion Papers 01-117/3, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20010117
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