Arbeitspapier

Transport Subsidies, System Choice, and Urban Sprawl

This paper analyzes the effect of transport subsidies on the spatial expansion of cities, asking whether subsidies are a source of undesirable urban sprawl. While the cost-reducing effect of transport subsidies is offset by a higher general tax burden (which reduces the demand for space), the analysis shows that subsidies nevertheless lead to spatial expansion of cities. If the transport system exhibits constant returns to scale, the subsidies are inefficient, making the urban expansion they entail undesirable. The paper also studies transport system choice.' The city is portrayed as selecting its transport system from along a continuum of money-cost/time-cost choices.

Language
Englisch

Bibliographic citation
Series: CESifo Working Paper ; No. 1090

Classification
Wirtschaft
Subject
transport subsidies
urban sprawl
spatial expansion of cities
transport
urban expansion

Event
Geistige Schöpfung
(who)
Brueckner, Jan K.
Event
Veröffentlichung
(who)
Center for Economic Studies and ifo Institute (CESifo)
(where)
Munich
(when)
2003

Handle
Last update
10.03.2025, 11:45 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Brueckner, Jan K.
  • Center for Economic Studies and ifo Institute (CESifo)

Time of origin

  • 2003

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