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Does urban sprawl increase the costs of providing local public services? Evidence from Spanish municipalities

Albert Solé-Ollé () and Miriam Hortas-Rico ()

No XREAP2008-10, Working Papers from Xarxa de Referència en Economia Aplicada (XREAP)

Abstract: This paper examines the impact of urban sprawl, a phenomenon of particular interest in Spain, which is currently experiencing this process of rapid, low-density urban expansion. Many adverse consequences are attributed to urban sprawl (e.g., traffic congestion, air pollution and social segregation), though here we are concerned primarily with the rising costs of providing local public services. Our initial aim is to develop an accurate measure of urban sprawl so that we might empirically test its impact on municipal budgets. Then, we undertake an empirical analysis using a cross-sectional data set of 2,500 Spanish municipalities for the year 2003 and a piecewise linear function to account for the potentially nonlinear relationship between sprawl and local costs. The estimations derived from the expenditure equations for both aggregate and six disaggregated spending categories indicate that low-density development patterns lead to greater provision costs of local public services.

Keywords: Urban sprawl; local public spending. (search for similar items in EconPapers)
JEL-codes: H1 H72 R51 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2008-11, Revised 2008-11
New Economics Papers: this item is included in nep-geo, nep-pbe and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed

Downloads: (external link)
http://www.xreap.cat/RePEc/xrp/pdf/XREAP2008-10.pdf First version, 2008 (application/pdf)
http://www.xreap.cat/RePEc/xrp/pdf/XREAP2008-10.pdf Revised version, 2008 (application/pdf)

Related works:
Journal Article: Does Urban Sprawl Increase the Costs of Providing Local Public Services? Evidence from Spanish Municipalities (2010) Downloads
Working Paper: Does urban sprawl increase the costs of providing local public services? Evidence from Spanish municipalities (2008) Downloads
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