Are compact cities environmentally friendly?

There is a wide consensus among international institutions and national governments in favor of compact (i.e. densely populated) cities as a way to improve the ecological performance of the transport system. Indeed, when both the intercity and intra-urban distributions of activities are given, a hig...

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Bibliographic Details
Published in:Journal of urban economics 2012-09, Vol.72 (2-3), p.123-136
Main Authors: Gaigné, Carl, Riou, Stéphane, Thisse, Jacques-François
Format: Article
Language:English
Subjects:
Analysis
Cities
Commuting
Commuting costs
Economic theory
Economics
Economics and Finance
Environmental impact studies
General economic equilibrium
Government
Greenhouse effect
Greenhouse gas
Households
Humanities and Social Sciences
Pollution levels
Population density
Public policy
Public transportation
Studies
Transport costs
Urban areas
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Summary:There is a wide consensus among international institutions and national governments in favor of compact (i.e. densely populated) cities as a way to improve the ecological performance of the transport system. Indeed, when both the intercity and intra-urban distributions of activities are given, a higher population density makes cities more environmentally friendly because the average commuting length is reduced. However, when we account for the possible relocation of activities within and between cities in response to a higher population density, the latter may cease to hold. Indeed, an increasing-density policy affects prices, wages and land rents, which in turn incentivizes firms and households to change place. This reshapes the urban system in a way that may generate a higher level of pollution. Thus, although an increase in compactness is environmentally desirable when locations are given, compactness may not be environmentally-friendly when one accounts for the general equilibrium effects generated by such a policy.
ISSN:0094-1190
1095-9068
DOI:10.1016/j.jue.2012.04.001