Spatial Policies and Land Use Patterns: Optimal and market allocations

Kyriakopoulou, Efthymia
Xepapadeas, Anastasios
Dept of Economics, University of Gothenburgsv
2013-05-22T07:58:03Z
2013-05-22T07:58:03Z
2013-05
JEL Classification: R14; R38, H23sv
Environmental conditions and pollution levels have been proven to affect firms and households location decisions in various ways. In this paper, we study the opti- mal and equilibrium distribution of industrial and residential land in a given region. Industries produce a single good using land and labor and generate emissions of a pollutant, and households consume goods and residential land and dislike pollution. The trade-off between the agglomeration and dispersion forces, in the form of industrial pollution, environmental policy, production externalities, and commuting costs, determines the emergence of industrial and residential clusters across space. We also show that the joint implementation of a site-specific environmental tax and a site-specific labor subsidy can reproduce the optimum as an equilibrium outcome.sv
41 pagessv
1403-2465
http://hdl.handle.net/2077/32873
engsv
Working Papers in Economicssv
566sv
agglomerationsv
land usesv
spatial policiessv
pollutionsv
environmental taxsv
labor subsidysv
Spatial Policies and Land Use Patterns: Optimal and market allocationssv
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