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Compact or Spread-Out Cities : Urban Planning, Taxation, and the Vulnerability to Transportation Shocks

Abstract : This paper shows that cities made more compact by transportation taxation are more robust than spread-out cities to shocks in transportation costs. Such a shock, indeed, entails negative transition effects that are caused by housing infrastructure inertia and are magnified in low-density cities. Distortions due to a transportation tax, however, have in absence of shock detrimental consequences that needs to be accounted for. The range of beneficial tax levels can, therefore, be identified as a function of the possible magnitude of future shocks in transportation costs. These taxation levels, which can reach significant values, reduce city vulnerability and prevent lock-ins in under-optimal situations.
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Submitted on : Wednesday, February 27, 2008 - 7:29:24 PM
Last modification on : Friday, August 5, 2022 - 2:38:11 PM

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François Gusdorf, Stéphane Hallegatte. Compact or Spread-Out Cities : Urban Planning, Taxation, and the Vulnerability to Transportation Shocks. Energy Policy, Elsevier, 2007, 35, pp.4826-4838. ⟨10.1016/j.enpol.2007.04.017⟩. ⟨hal-00259386⟩

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