Article (Scientific journals)
On the Design of Sustainable Cities: Local Traffic Pollution and Urban Structure
PICARD, Pierre M; Kyriakopoulou, Efthymia
2021In Journal of Environmental Economics and Management, 107
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Keywords :
Local pollution; Urban structure; Commuting
Abstract :
[en] This paper investigates the impact of local traffic pollution on the formation of residential and business districts. While firms benefit from local production externalities, households commute to their workplaces with private vehicles and exert a local pollution externality on the residents living along the urban transport networks. The spatial location of firms and residents endogenously results from the trade-off between the production and pollution externalities and the commuting costs. The analysis shows that in monocentric cities the benefits associated with a fall in per-vehicle pollution are absorbed by rents paid to absentee landlords. When a city includes business and residential districts as well as a district mixing both agents, a lower per-vehicle pollution enlarges the residential districts and shifts the business districts closer to the geographical center of the city. The paper finally studies the optimal city structure. The first-best policies that fully internalize the externalities still foster business agglomeration.
Disciplines :
Economic systems & public economics
Author, co-author :
PICARD, Pierre M ;  University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Department of Economics and Management (DEM)
Kyriakopoulou, Efthymia;  Swedish University of Agricultural Sciences > Economics
External co-authors :
yes
Language :
English
Title :
On the Design of Sustainable Cities: Local Traffic Pollution and Urban Structure
Publication date :
2021
Journal title :
Journal of Environmental Economics and Management
ISSN :
0095-0696
eISSN :
1096-0449
Publisher :
Elsevier, Amsterdam, United States
Volume :
107
Peer reviewed :
Peer Reviewed verified by ORBi
Focus Area :
Sustainable Development
Available on ORBilu :
since 13 December 2021

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