Pollution and the Efficiency of Urban Growth
Martin Quaas and
Sjak Smulders ()
No 2008.75, Working Papers from Fondazione Eni Enrico Mattei
Abstract:
We analyze the efficiency of urbanization patterns in a dynamic model of endogenous urban growth with two sectors of production. Production exhibits increasing returns to scale on aggregate. Urban environmental pollution, as a force that discourages agglomeration, is caused by domestic production. We show that cities are too large and too few in number in equilibrium, compared to the efficient urbanization path, if economic growth implies increasing aggregate emissions. If, on the other hand, production becomes cleaner over time (`quality growth') the urbanization path approximates the efficient outcome after finite time.
Keywords: Cities; Urbanisation; Pollution; Growth; Migration; Sustainable Development (search for similar items in EconPapers)
JEL-codes: O18 Q56 R12 (search for similar items in EconPapers)
Date: 2008-09
New Economics Papers: this item is included in nep-dge, nep-ene, nep-env, nep-geo, nep-res and nep-ure
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Related works:
Working Paper: Pollution and the Efficiency of Urban Growth (2008) 
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Persistent link: https://EconPapers.repec.org/RePEc:fem:femwpa:2008.75
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