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Can urban pollution shrink rural districts?

Tohru Naito () and Tatsuya Omori ()

Letters in Spatial and Resource Sciences, 2014, vol. 7, issue 2, 73-83

Abstract: This paper discusses how the externality of environmental damage affects the equilibrium properties of a simple overlapping generations model with multiple regions. Simulation results indicate that the environmental policy of the government decreases capital accumulation. When the government imposes an environmental tax on the urban sector, the urban-to-rural population ratio decreases, whereas the total fertility rate increases. Copyright Springer-Verlag Berlin Heidelberg 2014

Keywords: Environmental policy; Capital accumulation; Fertility; Population distribution; E61; J13; O52; R23 (search for similar items in EconPapers)
Date: 2014
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DOI: 10.1007/s12076-013-0102-y

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