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.

The dynamics of a NEG model with environmental pollution / Commendatore, Pasquale. - (2022). (Intervento presentato al convegno 11th Workshop Dynamic Models in Economics and Finance - Modelli Economici in Economia e Finanza (MDEF 2022) tenutosi a Università di Urbino, Italia nel 8-10 Settembre).

The dynamics of a NEG model with environmental pollution

Pasquale Commendatore
2022

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.
2022
The dynamics of a NEG model with environmental pollution / Commendatore, Pasquale. - (2022). (Intervento presentato al convegno 11th Workshop Dynamic Models in Economics and Finance - Modelli Economici in Economia e Finanza (MDEF 2022) tenutosi a Università di Urbino, Italia nel 8-10 Settembre).
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11588/912387
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