We conduct a multivariate analysis of the potential impact of higher gas prices on urban sprawl in the twelve largest Canadian Metropolitan Areas for the period 1986-2006. Controlling for variables such as income and population, we show that higher gasoline prices have signifi cantly reduced urban sprawl. On average, a 1% increase in gas prices has caused a 0.32% increase in the population living in the inner city and a 0.60% decrease in low-density housing units. Our results also show that higher incomes have played a signifi cant role in increasing urban sprawl.
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