Externalities in Urban Sustainability

Arbeitspapier

This paper studies urban sustainability from the perspective ofexternalities. We develop a general spatialequilibrium model of a monocentric city, in which two types ofexternalities occur. On the one hand, pollution inthe industrial centre leads to a spatially differentiateddeterioration of the environmental quality in the residentialarea. On the other hand, the existence of the city is explained byagglomeration economies, represented as simpleMarshallian external benefits in production. We investigate free-market versus first-best and second-best optimalspatial equilibria, and conclude that the pursuit of environmentalgoals may sometimes come at the expense ofreduced agglomeration economies, but may actually sometimes alsostimulate these economies.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Tinbergen Institute Discussion Paper ; No. 00-077/3

Classification and Topics

• Classification: Wirtschaft ; Externalities ; General Equilibrium and Welfare Economic Analysis of Regional Economies ; Land Use Patterns
• Subject: Urban equilibrium ; environmental externalities ; agglomeration externalities ; Externer Effekt ; Räumliche Gleichgewichtstheorie ; Nachhaltige Entwicklung ; Agglomerationseffekt ; Umweltbelastung ; Stadt ; Industrie ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Verhoef, Erik T. ; Nijkamp, Peter
• Event: Veröffentlichung
• (who): Tinbergen Institute
• (where): Amsterdam and Rotterdam
• (when): 2000

Further information

• Handle: http://hdl.handle.net/10419/85417
• Last update: 10.03.2025, 11:43 AM CET