Pollution and the Efficiency of Urban Growth

31 Pages Posted: 26 Sep 2008

See all articles by Martin F. Quaas

Martin F. Quaas

German Centre for Integrative Biodiversity Research (iDiv) Halle-Jena-Leipzig

Sjak Smulders

Tilburg University - Tilburg University School of Economics and Management; University of Calgary - Department of Economics

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Date Written: September 11, 2008

Abstract

We analyze the efficiency of urbanization patterns in a dynamic model of endogenous urban growth with two sectors of production. Production exhibits increasing returns to scale on aggregate. Urban environmental 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 equilibrium, compared to the efficient urbanization path, if economic growth implies increasing aggregate emissions. If, on the other hand, production becomes cleaner over time ('quality growth') the urbanization path approximates the efficient outcome after finite time.

Keywords: Cities, Urbanisation, Pollution, Growth, Migration, Sustainable Development

JEL Classification: Q56, R12, O18

Suggested Citation

Quaas, Martin F. and Smulders, Jacobus (Sjak) A., Pollution and the Efficiency of Urban Growth (September 11, 2008). FEEM Working Paper No. 75.2008. Available at SSRN: https://ssrn.com/abstract=1266707 or http://dx.doi.org/10.2139/ssrn.1266707

Martin F. Quaas (Contact Author)

German Centre for Integrative Biodiversity Research (iDiv) Halle-Jena-Leipzig ( email )

Deutscher Platz 5e
Leipzig, 04103
Germany

HOME PAGE: http://www.idiv.de/bioecon

Jacobus (Sjak) A. Smulders

Tilburg University - Tilburg University School of Economics and Management ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands
+31 13 466 2920 (Phone)
+31 13 466 3042 (Fax)

HOME PAGE: http://www.uvt.nl/webwijs/english/show.html?anr=801585&lang=en

University of Calgary - Department of Economics ( email )

2500 University Drive, NW
Calgary, Alberta T2N 1N4
Canada

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