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Modeling Spatial Sustainability: Spatial Welfare Economics versus Ecological Footprint

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  • Grazi, Fabio
  • van den Bergh, Jeroen C.J.M.
  • Rietveld, Piet

Abstract

A spatial welfare framework for the analysis of the spatial dimensions of sustainability is developed. It incorporates agglomeration effects, interregional trade, negative environmental externalities and various land use categories. The model is used to compare rankings of spatial configurations according to evaluations based on social welfare and ecological footprint indicators. Five spatial configurations are considered for this purpose. The exercise is operationalized with the help of a two-region model of the economy that is in line with the 'new economic geography'. Various (counter) examples show that the footprint method is not consistent with an approach aimed at maximum social welfare.

Suggested Citation

  • Grazi, Fabio & van den Bergh, Jeroen C.J.M. & Rietveld, Piet, 2006. "Modeling Spatial Sustainability: Spatial Welfare Economics versus Ecological Footprint," Sustainability Indicators and Environmental Valuation Working Papers 12212, Fondazione Eni Enrico Mattei (FEEM).
    • Handle: RePEc:ags:feemsi:12212
    DOI: 10.22004/ag.econ.12212
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    Cited by:

    1. Rauscher, Michael, 2009. "Concentration, separation, and dispersion: Economic geography and the environment," Thuenen-Series of Applied Economic Theory 109, University of Rostock, Institute of Economics.

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    More about this item

    Keywords

    Research Methods/ Statistical Methods;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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