Transport, Spatial Economy, and the Global Environment

In this paper we investigate interdependencies between transport, spatial economy, and the environment in the context of policies aimed at a global environmental target. A small-scale spatial price equilibrium model is formulated and used to perform a number of numerical simulations, and to investigate market-based versus environmentally sound spatioeconomic configurations with first-best and second-best policies, and with endogenous environmental technologies. We thus present a modelling framework capable of dealing with complexities associated with the simultaneous regulation, first-best and second-best, of multiple interdependent sectors in a spatial setting.

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