Equilibrium and first-best city with endogenous exposure to local air pollution from traffic

Mirjam Schindler (), Geoffrey Caruso and Pierre Picard
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Mirjam Schindler: IPSE, Université du Luxembourg

DEM Discussion Paper Series from Department of Economics at the University of Luxembourg

Abstract: Exposure to urban traffic-induced air pollution is a major health concern of cities. This paper analyzes the urban structure when localized pollution exposure arises from commuting traffic and investigates the feedback effect of endogenous pollution on residential choices. The presence of stronger traffic-induced air pollution exposure reduces the geographical extent and the population of cities. Land rents fall with distance from the city center while population densities may be non-monotonic. Cleaner vehicle technolo- gies reduce pollution exposure everywhere, increase population and density everywhere and do not affect the spatial extent of the city. The paper com- pares the urban equilibrium with the first-best. The first-best structure is a less expanded city with higher densities at the center and lower densities at the fringe.

Keywords: residential choice; traffic-induced air pollution; localized pollution exposure; urban structure (search for similar items in EconPapers)
JEL-codes: R11 R14 R41 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-ene, nep-env, nep-geo, nep-res, nep-tre and nep-ure
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https://hdl.handle.net/10993/28799 (application/pdf)

Related works:
Journal Article: Equilibrium and first-best city with endogenous exposure to local air pollution from traffic (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:luc:wpaper:16-08

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