Environmental policy, spatial spillovers and the emergence of economic agglomerations

Arbeitspapier

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.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Nota di Lavoro ; No. 70.2009

Klassifikation und Themen

• Klassifikation: Wirtschaft
• Thema: Agglomeration ; Spatial Economics ; Environmental Policy ; Knowledge Spillovers ; Transportation Cost

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Kyriakopoulou, Efthymia ; Xepapadeas, Anastasios
• Ereignis: Veröffentlichung
• (wer): Fondazione Eni Enrico Mattei (FEEM)
• (wo): Milano
• (wann): 2009

Weitere Informationen

• Handle: http://hdl.handle.net/10419/53270
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ