Teacher(s)Henri de Groot, Gerard van der Meijden, Erik Verhoef
Research fieldSpatial Economics
DatesPeriod 5 - May 02, 2022 to Jul 15, 2022
The aim of this course is to provide an advanced introduction into the extensive academic literature on spatial, transport and environmental economics. This literature has a long tradition, both theoretically and empirically, and is central in many policy discussions at the moment. All three areas have in common that they deal with externalities and their implications. More specifically, this course focuses on the economic analysis of urban, regional, transport and environmental phenomena, including topics such as agglomeration, sorting and spatial interaction (lectures 1 and 2); equilibrium, competition and optima in physical transport network markets (lectures 3 and 4) environmental economics including exhaustible resources and global warming (lectures 5 and 6). It covers advanced topics in theoretical and empirical research on spatial, transport and environmental economics.
Key issues in the “spatial block” are location and potential reasons for clustering of economic activity, the role of geographic factors in explaining regional economic growth performance, urban size and growth, and the functioning of regional labour markets. The “transport block” addresses the topics of market failures stemming from external effects, market power in dynamic network markets, and first-best and second-best regulation of such market failures. Finally, the “environmental block” deals with issues related to sustainability and the so-called Green Paradox. In this block, we will start with an analysis of the feasibility of sustainable growth in the neoclassical growth model extended with the dependence on non-renewable natural resources. We will find out that technical progress is crucial for sustainable growth and hence move on to discuss different frameworks in which technical progress is explained endogenously, from economic incentives. We will then continue to examine under which conditions different suboptimal climate policies may lead to a Green Paradox, in the sense that they increase current carbon emissions and hence accelerate global warming.
The course seeks a balance between theory and empirics, between analytical methodologies and policy analysis, and aims to integrate applied microeconomics and spatial, transport and environmental science.
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