Urban Structure and Environmental Externalities

Abstract

The objective of this paper is to analyze policy design for air pollution management in the spatial context of urban development. We base our analysis on the paper of Ogawa and Fujita (1982), which offers a proper theoretical framework of non-monocentric urban land use using static microeconomic theory where the city structure is endogenous. First, we show that when households internalize industrial pollution in their residential location choice, spatialization within the city is reinforced. This impacts directly the emissions of greenhouse gases from commuting. Then, we analyze policy instruments in order to achieve optimal land use pattern when the policy maker has to manage both industrial and commuting related polluting emissions, that interact through the land market.JEL classification : Q53, D62, R14

Equilibrium and first-best city with endogenous exposure to local air pollution from traffic

“…Henderson, 1977;Arnott et al, 2008;Rauscher, 2009;Kyriakopoulou and Xepapadeas, 2013) or by endogenous industrial sources (Regnier and Legras, 2014). A few urban economic contributions consider traffic-induced pollution (e.g.…”

Open space preservation in an urbanization context

“…For example, many studies (Brueckner, ; Larson & Yezer, ) show that we consider congestion issues caused by commuting, unpriced congestion results in a city that occupies too much land. These results are also true if we consider air pollution emitted by commuting (Regnier & Legras, ). In that case, the land sparing configuration may be recommended, and policies aimed at preserving open space at the edge of the city could act at a second‐best policy to address congestion or air pollution externalities.…”

“…Several models where firms’ location is endogenous exist in the economic literature (Fujita, ), and the location of firms may matter when they affect environmental damage, such as air pollution (see Regnier & Legras, ). However, we assume here that the location of firms is not relevant since their location choice is not influenced by open space.…”

Emerging urban form – Emerging pollution: Modelling endogenous health and environmental effects of traffic on residential choice

“…While the paper focussed on endogenising health concerns to balance previous environmental literature (e.g. Gaigne´et al, 2012; Kyriakopoulou and Xepapadeas, 2011; Le Boennec, 2014;Legras and Cavailhes, 2016;Regnier and Legras, 2018;Verhoef and Nijkamp, 2003), the ABM framework poses a framework to additionally integrate environmental concerns related to traffic-induced air pollution. From this, we find that the interrelation between health and environmental concerns prevents scattered development in fringe areas, which reduces commuting distances, but still preserves green spaces in central locations and along major transport axes.…”

“…Environmental concerns of air pollution have been the dominant focus of the literature (e.g. Gaigne´et al, 2012; Kyriakopoulou and Xepapadeas, 2011;Le Boennec, 2014;Legras and Cavailhes, 2016;Regnier and Legras, 2018;Verhoef and Nijkamp, 2003). We endogenise both health and environmental preferences and explore potential interactions between both concerns.…”