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On the design of sustainable cities: Local traffic pollution and urban structure

Kyriakopoulou, Efthymia and Picard, Pierre M (2021). On the design of sustainable cities: Local traffic pollution and urban structure. Journal of Environmental Economics and Management. 107 , 102443
[Research article]

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This paper investigates the impact of local traffic pollution on the formation of residential and business districts. While firms benefit from local production externalities, households commute to their workplaces with private vehicles and exert a local pollution externality on the residents living along the urban transport networks. The spatial location of firms and residents endogenously results from the trade-off between the production and pollution externalities and the commuting costs. The analysis shows that in monocentric cities the benefits associated with a fall in per-vehicle pollution are absorbed by rents paid to absentee landlords. When a city includes business and residential districts as well as a district mixing both agents, a lower per-vehicle pollution enlarges the residential districts and shifts the business districts closer to the geographical center of the city. The paper finally studies the optimal city structure. The first-best policies that fully internalize the externalities still foster business agglomeration.

Authors/Creators:Kyriakopoulou, Efthymia and Picard, Pierre M
Title:On the design of sustainable cities: Local traffic pollution and urban structure
Series Name/Journal:Journal of Environmental Economics and Management
Year of publishing :2021
Article number:102443
Number of Pages:21
Publication Type:Research article
Article category:Scientific peer reviewed
Version:Published version
Full Text Status:Public
Subjects:(A) Swedish standard research categories 2011 > 5 Social Sciences > 507 Social and Economic Geography > Economic Geography
Keywords:Local pollution, Urban structure, Commuting
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Additional ID:
Type of IDID
Web of Science (WoS)000714741000013
ID Code:26205
Faculty:NJ - Fakulteten för naturresurser och jordbruksvetenskap
Department:(NL, NJ) > Dept. of Economics
Deposited By: SLUpub Connector
Deposited On:25 Nov 2021 11:25
Metadata Last Modified:25 Nov 2021 11:31

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