Compact or Spread-Out Cities: Urban Planning, Taxation, and the Vulnerability to Transportation Shocks

François Gusdorf and Stephane Hallegatte
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François Gusdorf: CIRED - centre international de recherche sur l'environnement et le développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique

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Abstract: This paper shows that cities made more compact by transportation taxation are more robust than spread-out cities to shocks in transportation costs. Such a shock, indeed, entails negative transition effects that are caused by housing infrastructure inertia and are magnified in low-density cities. Distortions due to a transportation tax, however, have in absence of shock detrimental consequences that needs to be accounted for. The range of beneficial tax levels can, therefore, be identified as a function of the possible magnitude of future shocks in transportation costs. These taxation levels, which can reach significant values, reduce city vulnerability and prevent lock-ins in under-optimal situations.

Keywords: urban economics; transportation; urbanism (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (15)

Published in Energy Policy, 2007, 35, pp.4826-4838. ⟨10.1016/j.enpol.2007.04.017⟩

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Related works:
Working Paper: Compact or Spread-Out Cities: Urban Planning, Taxation, and the Vulnerability to Transportation Shocks (2010)
Journal Article: Compact or spread-out cities: Urban planning, taxation, and the vulnerability to transportation shocks (2007)
Working Paper: Compact or Spread-Out Cities: Urban Planning, Taxation, and the Vulnerability to Transportation Shocks (2007)
Working Paper: Compact or Spread-Out Cities: Urban Planning, Taxation, and the Vulnerability to Transportation Shocks (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00259386

DOI: 10.1016/j.enpol.2007.04.017

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