We study the optimal and equilibrium size of cities in a city system model with environmental pollution. Pollution is …, if pollution is local or per capita pollution increases with population, we find that equilibrium cities are too large …. When pollution is global and per capita pollution declines with city size, however, equilibrium cities may be too small …

We study the optimal and equilibrium size of cities in a city system model with environmental pollution. Pollution is …, if pollution is local or per capita pollution increases with population, we find that equilibrium cities are too large …. When pollution is global and per capita pollution declines with city size, however, equilibrium cities may be too small …

key insight that emerges is that the interaction between agglomeration economies and comparative advantage involves a … comparative advantage in sectors governed by this force whilst the impact of agglomeration economies is enhanced by trade cost … small economies is not only shaped by the primitives that determine agglomeration economies and comparative advantage but …

-off between the agglomeration and dispersion forces, in the form of pollution from stationary forces, environmental policy …

We study a developing countries setting in which agglomeration efficiency of urban production attracts rural …-to-urban migration, whereas urban pollution deters rural-to-urban migration. By means of a general equilibrium model we study the … formation of policies aimed at striking a socially optimal balance between supporting efficient levels of urban agglomeration …