Green zoning regulation under price discrimination
This study aims to examine urban zoning within a linear city in a Bertrand duopolistic competition framework with price discrimination and linear transportation costs. It analyses the effects of introducing an environmental area where economic and residential activity are not allowed. The welfare...
| Main Authors: | , |
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| Format: | Article |
| Language: | deu |
| Published: |
Faculty of Economics University of Rijeka
2017-06-01
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| Series: | Zbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu |
| Subjects: | |
| Online Access: | https://www.efri.uniri.hr/sites/efri.uniri.hr/files/cr-collections/2/03-hamoudi-moral-2017-1.pdf |
| Summary: | This study aims to examine urban zoning within a linear city in a Bertrand
duopolistic competition framework with price discrimination and linear
transportation costs. It analyses the effects of introducing an environmental area
where economic and residential activity are not allowed. The welfare function used
to determine the optimal size of the green area allows for a possible regulator’s
bias in favour of firms/consumers. It is shown that location-price competition can
be either reduced or increased depending on the size of the green area. The results
indicate when a regulator implements green zoning, under linear transportation
costs, influences the optimal location of firms (because these locations depend on
the size of the green zone). In consequence, zoning may be used as an effective
industrial or urban policy tool. |
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| ISSN: | 1331-8004 1846-7520 |