we analyze the role of pollution for industry location and residential choice. We present a new economic geography (NEG) model in which manufacturing generates local pollution (that does not accumulate) and uses two types of labour input: unskilled workers that cannot migrate and work where they live; and high-skilled entrepreneurs that choose where to produce and where to live. Taking on board distance working, entrepreneurs can live in a different location from production. Both types of households enjoy utility from consuming all commodities (locally and imported variants) and suffer from local pollution. The resulting model is of the footloose entrepreneur variant, but involves two dynamic equations: the standard one governing the residential choice of entrepreneurs, and another one governing where production is located.
Environmental policy and the dynamics of industry location and residential choice / Commendatore, Pasquale. - (2023). (Intervento presentato al convegno Nonlinear Economic Dynamics (NED 2023) tenutosi a University of Agder, Kristiansand, Norway nel 19-21 Giugno 2023).
Environmental policy and the dynamics of industry location and residential choice
pasquale commendatore
2023
Abstract
we analyze the role of pollution for industry location and residential choice. We present a new economic geography (NEG) model in which manufacturing generates local pollution (that does not accumulate) and uses two types of labour input: unskilled workers that cannot migrate and work where they live; and high-skilled entrepreneurs that choose where to produce and where to live. Taking on board distance working, entrepreneurs can live in a different location from production. Both types of households enjoy utility from consuming all commodities (locally and imported variants) and suffer from local pollution. The resulting model is of the footloose entrepreneur variant, but involves two dynamic equations: the standard one governing the residential choice of entrepreneurs, and another one governing where production is located.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.