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Urban-rural migration and congestion costs revisited: is there a triple dividend for cities in developing countries?

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  • Klarl, Torben Alexander

Abstract

Many cities in developing countries suffer from bad health and environmental conditions due to urbanization. The paper shows that increasing urban manufacturing congestion costs do not necessarily imply a reduction of a city's health as well as of environmental quality as one could expect ex-ante. The model distills a range of the urban manufacturing sector size which generates a triple dividend: a situation in which the government can simultaneously improve health, reduce pollution, and increase the productivity of labour by investing in either green capital or urban infrastructure that reduces congestion costs.

Suggested Citation

  • Klarl, Torben Alexander, 2015. "Urban-rural migration and congestion costs revisited: is there a triple dividend for cities in developing countries?," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112829, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc15:112829
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    JEL classification:

    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects

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