Urban strucutre and environmental externalities

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The objective of this paper is to analyze the impact of pollution on the structure of cities. We base our analysis on the paper of Ogawa and Fujita (1982), which offers a proper theoretical framework of non-monocentric urban land use using static microeco- nomic theory. We show that households internalize the effects of industrial air pollution in their choice of localization, which consequently reinforces spatialization within the city. We demonstrate that it impacts directly the emissions of pollution by commuting and we analyze policy instruments in order to achieve optimal land use pattern.

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