Environmental Quality, Abatement, and Urban Development

Schubert, U. (1981). Environmental Quality, Abatement, and Urban Development. IIASA Collaborative Paper. IIASA, Laxenburg, Austria: CP-81-016

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Abstract

The purpose of this paper is to derive a simultaneous equation model of an urban economy in which the impacts of environmental policy on the suburbanization-reurbanization process can be assessed. The variable to show these effects is a measure of the density of land-use activity. The model consists of essentially four components -- an urban land market, a market for an aggregate good, a description of a process of emission of residuals as a necessary by-product of land-use activities (production, consumption, commuting), and their accumulation and diffusion in a receiving medium (e.g., air and noise pollution).

Environmental policy is then introduced into this simultaneous equation model (emission standards and fines, ordinances to install abatement equipment, emission fees, etc.). A discussion follows on the hypothesis that a successful antipollution policy could introduce a trend toward reurbanization with the claim that clear air could induce land users to relocate closer to the center of a city.

The policies considered include fines for exceeding emission standards, inducing land users to purchase abatement devices in the market. The study attempts to derive the impacts of these measures on residuals' concentration, the roles of abatement devices, and urban density based on some a prior; assumptions.

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