Pollution abatement versus spillover effects: is urban toll a relevant fiscal tool?
Résumé
Using an urban economic model with an endogenous centre, we prove to what extent policies aimed at reducing pollution generated by working households’ commuting trips involve a better control of urban sprawl as a positive side-effect. After the eco-tax has been levied by a local planner in the form of a kilometric urban toll, spillover effects which incited firms to group together in the Central Business District (CBD) keep on working as a positive externality. Under certain conditions, they are even strengthened.