Arbeitspapier
Environmental policy, spatial spillovers and the emergence of economic agglomerations
We explain the spatial concentration of economic activity, in a model of economic geography, when the cost of environmental policy - which is increasing in the concentration of emissions - and an immobile production factor act as centrifugal forces, while positive knowledge spillovers and iceberg transportation costs act as centripetal forces. We study the agglomeration effects caused by trade-offs between centripetal and centrifugal forces. The above effects govern firms' location decisions and as a result, they define the distribution of economic activity across space. We derive the rational expectations equilibrium and the social optimum, compare the outcomes and characterize the optimal spatial policies.
- Language
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Englisch
- Bibliographic citation
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Series: Nota di Lavoro ; No. 70.2009
- Classification
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Wirtschaft
- Subject
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Agglomeration
Spatial Economics
Environmental Policy
Knowledge Spillovers
Transportation Cost
- Event
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Geistige Schöpfung
- (who)
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Kyriakopoulou, Efthymia
Xepapadeas, Anastasios
- Event
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Veröffentlichung
- (who)
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Fondazione Eni Enrico Mattei (FEEM)
- (where)
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Milano
- (when)
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2009
- Handle
- Last update
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10.03.2025, 11:41 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Kyriakopoulou, Efthymia
- Xepapadeas, Anastasios
- Fondazione Eni Enrico Mattei (FEEM)
Time of origin
- 2009