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Atmospheric pollution in rapidly growing industrial cities: spatial policies and land use patterns

Author

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  • Efthymia Kyriakopoulou
  • Anastasios Xepapadeas

Abstract

We study the optimal and equilibrium distribution of industrial and residential land in a given region. The trade-off between agglomeration and dispersion forces in the form of pollution from stationary forces, production externalities and commuting costs, determines the emergence of industrial and residential clusters across space. In this context, we define two kinds of spatial policies that can be used in order to close the gap between optimal and market allocations. More specifically, we show that the joint implementation of a site-specific environmental tax and a site-specific labor subsidy can reproduce the optimum as an equilibrium outcome. The methodological approach followed in this article allows for an endogenous determination of land use patterns.

Suggested Citation

  • Efthymia Kyriakopoulou & Anastasios Xepapadeas, 2017. "Atmospheric pollution in rapidly growing industrial cities: spatial policies and land use patterns," Journal of Economic Geography, Oxford University Press, vol. 17(3), pages 607-634.
    • Handle: RePEc:oup:jecgeo:v:17:y:2017:i:3:p:607-634.
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    File URL: http://hdl.handle.net/10.1093/jeg/lbw018
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    Citations

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    Cited by:

    1. Kyriakopoulou, Efthymia & Picard, Pierre M., 2021. "On the design of sustainable cities: Local traffic pollution and urban structure," Journal of Environmental Economics and Management, Elsevier, vol. 107(C).
    2. Pingping Dai & Yuanyuan Lin, 2021. "Should There Be Industrial Agglomeration in Sustainable Cities?: A Perspective Based on Haze Pollution," Sustainability, MDPI, vol. 13(12), pages 1-22, June.
    3. Spyridon Tsangaris & Anastasios Xepapadeas & Athanasios Yannacopoulos, 2022. "Spatial externalities, R&D spillovers, and endogenous technological change," DEOS Working Papers 2225, Athens University of Economics and Business.
    4. Xiangqi Yan & Hanbing Tuo & Yani Lai, 2022. "A Two-Way Fixed Effects Estimation on the Impact of Industrial Land Supply on Environmental Pollution in Urban China," IJERPH, MDPI, vol. 19(22), pages 1-24, November.
    5. Wu, JunJie & Segerson, Kathleen & Wang, Chunhua, 2023. "Is environmental regulation the answer to pollution problems in urbanizing economies?," Journal of Environmental Economics and Management, Elsevier, vol. 117(C).
    6. Anastasios Xepapadeas, 2022. "On the optimal management of environmental stock externalities," Proceedings of the National Academy of Sciences, Proceedings of the National Academy of Sciences, vol. 119(24), pages 2202679119-, June.
    7. Estay, Manuel & Stranlund, John K., 2022. "Entry, location, and optimal environmental policies," Resource and Energy Economics, Elsevier, vol. 70(C).
    8. William Brock & Anastasios Xepapadeas, 2020. "Spatial Environmental and Resource Economics," DEOS Working Papers 2002, Athens University of Economics and Business.
    9. Yingming Zhu & Nian Wang & Ronghui Xie, 2022. "Exploring the Role of Heterogeneous Environmental Regulations in Industrial Agglomeration: A Fresh Evidence from China," Sustainability, MDPI, vol. 14(17), pages 1-17, August.
    10. Michael Pflüger, 2020. "City Size, Pollution and Emission Policies," CESifo Working Paper Series 8448, CESifo.

    More about this item

    Keywords

    Spatial policies; agglomeration; land use; atmospheric pollution; environmental tax; labor subsidy;
    All these keywords.

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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