Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/174945 
Year of Publication: 
2017
Series/Report no.: 
CESifo Working Paper No. 6822
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
The main aim of this paper is to assess whether there is a statistically significant environmental impact of cities within European countries. Second, starting from the estimated environmental impact of cities within European countries, the paper investigates whether cross-country variation can be explained by macro-economic factors and government policies which can play a role in mitigating such an impact. We start from individual evidence (EU-SILC data) to obtain a measure of the environmental impact of cities within countries, and then correlate the latter with macro variables to explain European heterogeneity. These estimates confirm that the environmental risk for households is particularly perceived in more densely populated urban agglomerations, although the marginal effects are quite heterogeneous between countries. Macroeconomic factors such as inequality, wealth, taxation and public spending on the environment, and macroeconomic constraints such as the public finance disequilibrium produce a strong heterogeneity between countries in determining the marginal effects of urban metropolises on household environmental risk.
Subjects: 
household environmental risk
sustainable cities
bivariate probit model
cross-country heterogeneity
JEL: 
Q51
Q53
R21
I31
C35
Document Type: 
Working Paper
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