Environmental Policy, Spatial Spillovers and the Emergence of Economic Agglomerations
| dc.creator | Kyriakopoulou, Efthymia | |
| dc.creator | Xepapadeas, Anastasios | |
| dc.date | 2017-04-01T19:24:49Z | |
| dc.date.accessioned | 2026-07-09T04:55:23Z | |
| dc.description | We explain the spatial concentration of economic activity, in a model of economic geography, when the cost of environmental policy - which is increasing in the concentration of emissions - and an immobile production factor act as centrifugal forces, while positive knowledge spillovers and iceberg transportation costs act as centripetal forces. We study the agglomeration effects caused by trade-offs between centripetal and centrifugal forces. The above effects govern firms’ location decisions and as a result, they define the distribution of economic activity across space. We derive the rational expectations equilibrium and the social optimum, compare the outcomes and characterize the optimal spatial policies. | |
| dc.identifier | doi:10.22004/ag.econ.54289 | |
| dc.identifier | https://ageconsearch.umn.edu/record/54289/files/70-09.pdf | |
| dc.identifier | http://ageconsearch.umn.edu/record/54289 | |
| dc.identifier.uri | http://hdl.handle.net/123456789/556671 | |
| dc.language | eng | |
| dc.publisher | ||
| dc.source | http://ageconsearch.umn.edu/record/54289 | |
| dc.title | Environmental Policy, Spatial Spillovers and the Emergence of Economic Agglomerations | |
| dc.type | Text |