@article{Stark:329522,
      recid = {329522},
      author = {Stark, Oded  and Pang, Yu and Fan, Simon },
      title = {Agglomeration, pollution, and migration: A substantial  link, and policy design},
      address = {2022-11-30},
      number = {1546-2022-2050},
      series = {ZEF Discussion Papers on Development Policy No. 321},
      pages = {27},
      month = {Nov},
      year = {2022},
      abstract = {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 and mitigating urban  pollution in the presence of endogenous rural-to-urban  migration. We show that without government intervention,  although rural-to-urban migration contributes to  agglomeration economies, it does not improve social welfare  because it also exacerbates environmental degradation. We  also show that urban pollution problems cannot be resolved  by means of environmental regulation alone: for example, an  emissions tax aimed at curbing urban pollution can backfire  as and when it increases the appeal of rural-to-urban  migration. A policy of emissions tax in conjunction with a  subsidy to rural individuals is an effective means of  enhancing urban productivity while reducing urban  pollution.},
      url = {http://ageconsearch.umn.edu/record/329522},
      doi = {https://doi.org/10.22004/ag.econ.329522},
}