This paper develops a micro-founded city systems model with an endogenous number of cities to explore whether local governments establish the optimal city size when production processes involve environmental pollution. Our analysis delivers two key insights. First, if an optimal scheme to...

This paper develops a model with an endogenous number of cities to explore whether local governments establish the optimal city size when key activities in the city are associated with emissions that harm consumers. In contrast to extant research, our model is fully micro-founded with respect to...

Die globalen Gemeinschaftsgüter wie der internationale Luftraum und die Hohe See werden zunehmend übernutzt, weil die Nutzer nicht die vollen Kosten ihres Handelns tragen müssen. Die CO2-Emissionen des internationalen Flugverkehrs und des Schiffsverkehrs fallen nicht unter die quantitativen...