Agri-environmental policy and urban sprawl patterns: A general equilibrium analysis

Thomas Coisnon, Walid Oueslati and Julien Salanié (julien.salanie@univ-st-etienne.fr)
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Julien Salanié: GRANEM - Groupe de Recherche Angevin en Economie et Management - UA - Université d'Angers - AGROCAMPUS OUEST - Institut National de l'Horticulture et du Paysage

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Abstract: This paper develops a spatial general equilibrium analysis of an agri-environmental policy in a suburban context. We present a static monocentric model of an open city where agricultural bid-rents and agricultural amenities vary endogenously in space. Amenities are valued by households and are thus a factor of urban decentralisation. This leads us to focus on the spatial effects of agri-environmental policies promoting amenities. The model characterises a suburban mixed land-use area where households and farmers share space. We provide theoretical evidence that agri-environmental policies are not adopted uniformly by farmers and that they impact on several city features. We highlight that the funding of an agri-environmental policy through household income taxation can modify urbanisation patterns. We also discuss its distributional aspects.

Keywords: agricultural amenities; land development; agri-environmental policy; urban sprawl; leapfrog; monocentric model; amenités agricoles; urbanisation; politiques agri-environmentales; étalement urbain; modèle monocentrique. (search for similar items in EconPapers)
Date: 2012-10-10
New Economics Papers: this item is included in nep-agr, nep-env, nep-geo, nep-tur and nep-ure
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