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Pollution-reducing infrastructure and urban environmental policy

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  • QUAAS, MARTIN F.

Abstract

Pollution-reducing infrastructure is introduced in a general spatial equilibrium model of a monocentric city as a public good which serves to abate polluting emissions from households' consumption. This is an innovative extension to an urban economics model and motivated by stylized facts observed for the case of Bombay. It allows us to develop and analyse improved policy instruments to solve urban environmental problems.We demonstrate how the optimal density of people, goods consumption, and pollution-reducing infrastructure are interrelated and spatially distributed. The public-good character of infrastructure is shown to favour an increased infrastructural density all over the city in response to increased population size. In two settings of public and private infrastructural supply, we derive three interrelated and spatially differentiated policy instruments, by which the optimal allocation is implemented as a spatial market equilibrium.

Suggested Citation

  • Quaas, Martin F., 2007. "Pollution-reducing infrastructure and urban environmental policy," Environment and Development Economics, Cambridge University Press, vol. 12(2), pages 213-234, April.
    • Handle: RePEc:cup:endeec:v:12:y:2007:i:02:p:213-234_00
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    Cited by:

    1. Legras, Sophie, 2015. "Correlated environmental impacts of wastewater management in a spatial context," Regional Science and Urban Economics, Elsevier, vol. 52(C), pages 83-92.
    2. Evangelos V. Dioikitopoulos & Sugata Ghosh & Eugenia Vella, 2016. "Technological Progress, Time Perception and Environmental Sustainability," Working Papers 2016002, The University of Sheffield, Department of Economics.
    3. Martin F. Quaas & Sjak Smulders, 2018. "Brown Growth, Green Growth, and the Efficiency of Urbanization," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 71(2), pages 529-549, October.
    4. Sophie Legras, 2013. "From the tank to climate change: multiple environmental impacts of wastewater management," Working Papers hal-01190244, HAL.
    5. Dioikitopoulos, Evangelos V. & Ghosh, Sugata & Karydas, Christos & Vella, Eugenia, 2020. "Roads to prosperity without environmental poverty: The role of impatience," Economics Letters, Elsevier, vol. 186(C).

    More about this item

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock

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