Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/113980
Authors: 
Borck, Rainald
Pflüger, Michael P.
Year of Publication: 
2015
Series/Report no.: 
IZA Discussion Papers 9104
Abstract: 
This paper establishes a simple theoretical framework which comprises key forces that shape the structure and interrelation of cities to study the interdependencies between urban evolution and the environment. We focus on the potential of the unfettered market forces to economize on emissions. A key finding is that these forces alone may suffice to generate an urban Environmental Kuznets Curve. In particular, reducing trade costs increases per capita incomes and generates a U-shaped evolution of emissions in the process of agglomeration and redispersion. Another key result is that agglomeration per se is typically not a boon for the environment, as total emissions in the total city system are likely to rise.
Subjects: 
city structure
city systems
environmental pollution
global warming
Environmental Kuznets Curve
trade costs
commuting costs
housing
JEL: 
F18
Q50
R11
R12
Document Type: 
Working Paper

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