www.econstor.eu Correcting agglomeration economies: How air pollution matters
نویسندگان
چکیده
This paper aims to correct standard measures of agglomeration economies to account for air pollution generated by commuting. This paper examines the impact of nitrogen oxide (NOX) a pollutant mainly released by transportation on worker productivity. Literature on agglomeration economies highlights the positive role of employment density on productivity, without accounting for the environmental impact of a better accessibility. First, standard estimates of agglomeration economies for the 304 French employment areas are in line with the literature. Then, we introduce NOX emissions, which reveals that emissions reduce the expected agglomeration gains by more than 13%, confirming that air pollution matters.
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