Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/69590
Authors: 
Quaas, Martin F.
Smulders, Sjak
Year of Publication: 
2012
Series/Report no.: 
CESifo Working Paper: Resources and Environment 4044
Abstract: 
We analyze the efficiency of urbanization patterns in a stylized dynamic model of urban growth with three sectors of production. Pollution, as a force that discourages agglomeration, is caused by domestic production. We show that cities are too large and too few in number in uncoordinated equilibrium if economic growth implies increasing pollution ('brown growth'). If, however, production becomes cleaner over time ('green growth') the equilibrium urbanization path reaches the efficient urbanization path after finite time without need of a coordinating mechanism. The results may be generalized to take other forms of congestion into account.
Subjects: 
urbanization
green growth
migration
pollution
congestion
JEL: 
O18
Q56
R12
Document Type: 
Working Paper

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