Urban structure and environmental externalities
2014
Legras, Sophie | Regnier, Camille
The objective of this paper is to analyze policy design for air pollution managementin the spatial context of urban development. We base our analysis on the paper of Ogawaand Fujita (1982), which offers a proper theoretical framework of non-monocentric urbanland use using static microeconomic theory where the city structure is endogenous. First,we show that when households internalize industrial pollution in their residential locationchoice, spatialization within the city is reinforced. This impacts directly the emissionsof greenhouse gases from commuting. Then, we analyze policy instruments in order toachieve optimal land use pattern when the policy maker has to manage both industrialand commuting related polluting emissions, that interact through the land market.
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