Urban Sustainability, Agglomeration Forces and the Technological Deus ex Machina
Erik Verhoef,
Peter Nijkamp and
Joe Daniel
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Joe Daniel: University of Delaware, USA
No 01-117/3, Tinbergen Institute Discussion Papers from Tinbergen Institute
Abstract:
This paper aims to analyze and depict urban equilibrium from the perspective of acomplex force field between (positive) agglomeration economies and (negative) environmentalexternalities. Based on a simplified representation of a linear urban economy, anarchetypical model based on general equilibrium principles is designed and its propertiesare investigated by using numerical simulations. The model includes a spacious industrial centrein which agglomeration externalities are differentiated over space, and a residential area thatsuffers from pollution which too is differentiated over space. Environmental technology choiceby firms is endogenized. This model is able to generate interesting and sometimescounter-intuitive results for the city under consideration.
Date: 2001-12-06
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Working Paper: Urban sustainability, agglomeration forces and the technological deus ex machina (2001) 
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Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20010117
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