Spatial Policies and Land Use Patterns: Optimal and Market Allocations

Efthymia Kyriakopoulou () and Anastasios Xepapadeas

No 2014.08, Working Papers from Fondazione Eni Enrico Mattei

Abstract: We study the optimal and equilibrium distribution of industrial and residential land in a given region. The trade-off between the agglomeration and dispersion forces, in the form of pollution from stationary forces, environmental policy, production externalities, and commuting costs, determines the emergence of industrial and residential clusters across space. In this context, we define two kinds of spatial policies that can be used in order to close the gap between optimal and market allocations. More specifically, we 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. We also propose a novel approach that allows for endogenous determination of land use patterns and provides more precise results compared to previous studies.

Keywords: Spatial Policies; Agglomeration; Land Use; Pollution; Environmental Tax; Labor Subsidy (search for similar items in EconPapers)
JEL-codes: H23 R14 R38 (search for similar items in EconPapers)
Date: 2014-01
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://feem-media.s3.eu-central-1.amazonaws.com/w ... oads/NDL2014-008.pdf (application/pdf)

Related works:
Working Paper: Spatial Policies and Land Use Patterns: Optimal and Market Allocations (2014)
Working Paper: Spatial Policies and Land Use Patterns: Optimal and Market Allocations (2013)
Working Paper: Spatial Policies and Land Use Patterns: Optimal and market allocations (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fem:femwpa:2014.08

Access Statistics for this paper

More papers in Working Papers from Fondazione Eni Enrico Mattei Contact information at EDIRC.
Bibliographic data for series maintained by Alberto Prina Cerai ( this e-mail address is bad, please contact ).