Urban spatial structure, transport-related pollution, and welfare

In this paper, we study the effects of urban design on pollution and welfare. We build a theoretical model of residential choices with pollution externalities arising from commuting, where the location of jobs within the city and the demand for housing are endogenous. We show that a polycentric city is desirable from welfare and ecological perspective, provided that travel speed and/or the number of roads directly connected with the city center are sufficiently high. The spatial extension of cities remains the critical variable to curb transport-related urban pollution