An equilibrium model of city with atmospheric pollution dispersion

34 Pages Posted: 14 Dec 2022 Last revised: 31 Jan 2023

See all articles by Mohamed Bahlali

Mohamed Bahlali

Université Paris-Dauphine, PSL Research University

Quentin Petit

Université Paris Dauphine - CEREMADE

Date Written: November 28, 2022

Abstract

We propose a spatial model of city coupling a labour market, a residential market, and pollution resulting from commuter traffic. The city can be of any shape. Agents choose where to work and live in order to maximize their utility, by consuming goods, residential surface and by valuing air quality. Pollution dispersion is described by a scalar transport equation, accounting for meteorological effects (diffusion, advection by wind and lessivage by rain). We prove existence of equilibria, and we propose an algorithm for computing solutions. We obtain analytical and numerical results emphasizing the combined role of economic and meteorological factors on urban air quality. We finally address welfare considerations.

Keywords: Air pollution, spatial economics, urban economics, atmospheric dispersion

JEL Classification: C61, C62, R11, R12, Q53

Suggested Citation

Bahlali, Mohamed and Petit, Quentin, An equilibrium model of city with atmospheric pollution dispersion (November 28, 2022). Available at SSRN: https://ssrn.com/abstract=4287444 or http://dx.doi.org/10.2139/ssrn.4287444

Mohamed Bahlali (Contact Author)

Université Paris-Dauphine, PSL Research University ( email )

Place du Maréchal de Lattre de Tassigny
Paris, 75016
France

Quentin Petit

Université Paris Dauphine - CEREMADE ( email )

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