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Equilibrium and first-best city with endogenous exposure to local air pollution from traffic
Schindler, Mirjam; Caruso, Geoffrey; Picard, Pierre M
2016
 

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Keywords :
residential choice; traffic-induced air pollution; localized pollution exposure; urban structure
Abstract :
[en] Exposure to urban traffic-induced air pollution is a major health concern of cities. This paper analyzes the urban structure when localized pollution exposure arises from commuting traffic and investigates the feedback effect of endogenous pollution on residential choices. The presence of stronger traffic-induced air pollution exposure reduces the geographical extent and the population of cities. Land rents fall with distance from the city center while population densities may be non-monotonic. Cleaner vehicle technologies reduce pollution exposure everywhere, increase population and density everywhere and do not affect the spatial extent of the city. The paper compares the urban equilibrium with the first-best. The first-best structure is a less expanded city with higher densities at the center and lower densities at the fringe.
Disciplines :
Human geography & demography
Microeconomics
Author, co-author :
Schindler, Mirjam ;  University of Luxembourg > Faculty of Language and Literature, Humanities, Arts and Education (FLSHASE) > Identités, Politiques, Sociétés, Espaces (IPSE)
Caruso, Geoffrey  ;  University of Luxembourg > Faculty of Language and Literature, Humanities, Arts and Education (FLSHASE) > Identités, Politiques, Sociétés, Espaces (IPSE)
Picard, Pierre M ;  University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA)
Language :
English
Title :
Equilibrium and first-best city with endogenous exposure to local air pollution from traffic
Publication date :
August 2016
Number of pages :
37
Available on ORBilu :
since 07 November 2016

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