Brown growth, green growth, and the efficiency of urbanization

Sjak Smulders, Martin Quaas

Research output: Contribution to journalArticleScientificpeer-review

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. We also generalize these results by taking other forms of congestion and urban land markets into account.

Original languageEnglish
Pages (from-to)529-549
JournalEnvironmental & Resource Economics
Volume71
Issue number2
DOIs
Publication statusPublished - Oct 2018

Keywords

  • Urbanization
  • Green growth
  • Migration
  • Pollution
  • Congestion

Cite this

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Brown growth, green growth, and the efficiency of urbanization. / Smulders, Sjak; Quaas, Martin.

In: Environmental & Resource Economics, Vol. 71, No. 2, 10.2018, p. 529-549.

Research output: Contribution to journalArticleScientificpeer-review

TY - JOUR

T1 - Brown growth, green growth, and the efficiency of urbanization

AU - Smulders, Sjak

AU - Quaas, Martin

PY - 2018/10

Y1 - 2018/10

N2 - 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. We also generalize these results by taking other forms of congestion and urban land markets into account.

AB - 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. We also generalize these results by taking other forms of congestion and urban land markets into account.

KW - Urbanization

KW - Green growth

KW - Migration

KW - Pollution

KW - Congestion

U2 - 10.1007/s10640-017-0172-1

DO - 10.1007/s10640-017-0172-1

M3 - Article

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SP - 529

EP - 549

JO - Environmental and Resource Economics

JF - Environmental and Resource Economics

SN - 0924-6460

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