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An equilibrium model of city with atmospheric pollution dispersion

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66
Author
Mohamed Bahlali Quentin Petit
Category
Quantitative
Date Posted
2022/12/14
Date Retrieved
2023/01/23
Date Revised
2023/01/23
Date Written
2022/11/28
Description
We propose a spatial model of city coupling a labour market a residential market and pollution resulting from commuter traffic. The city can be of any shape. Agents choose where to work and live in order to maximize their utility by consuming goods residential surface and by valuing air quality. Pollution dispersion is described by a scalar transport equation accounting for meteorological effects (diffusion advection by wind and lessivage by rain). We prove existence of equilibria and we propose an algorithm for computing solutions. We obtain analytical and numerical results emphasizing the combined role of economic and meteorological factors on urban air quality. We finally address welfare considerations.
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JEL Classifications
C61 C62 R11 R12 Q53
Keywords
Air pollution spatial economics urban economics atmospheric dispersion
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34
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