Files
Abstract
In this paper, we study the impact of urbanization on the location of agricultural production
and the GHG emissions related to transportation activities. We develop an economic geography
model where the location of agricultural activities and urban population are endogenous. We
show that increasing agricultural yields induce the spatial concentration of agricultural production in the least urbanized region if agricultural transport costs are relatively low and in the
most urbanized region otherwise. In addition, interregional trade in agricultural commodities is
desirable to reduce GHG emissions, except when urban population is equally split between cities.
However, the market may induce too much agglomeration of agricultural production when yields
are high and when collection costs are low.