An Analysis of the Effect of Pollution Taxation on Urban Agglomeration

• Main Authors: WU, CHENG-HAN, 吳承翰
• Other Authors: TSAI, JYH-FA
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/95h65a

碩士 === 國立臺北大學 === 都市計劃研究所 === 106 === Based on the theory of new economic geography, this study incorporates the pollution emissions of manufacturers' production behaviors and the pollution tax levied by the government into the theoretical model. The concept of environmental capital proposed by Copeland and Taylor (1999) and replacement cost proposed by Pearce (1993) are introduced in the model. Specifically, the pollution tax revenue collected by the government is used to repair the damage of environmental capital, thereby mitigating the environmental damage caused by the manufacturer's production behavior. In other words, although the pollution tax will increase the manufacturer's production costs, it also has the positive function of improving the environmental quality, which has a positive impact on the local residents. This study analyzes the distribution of manufacturing labor between the two regions and the effect of various parameters on the distribution. These parameters include pollution tax rate, pollution degree of manufacturing production, environmental replacement cost, and the residential preference for environmental quality. The result shows that manufacturing workers are more likely to be evenly distributed between the two regions rather than concentrated in one of the regions as the pollution level of manufacturing production increases, the pollution tax rates increase, and environmental replacement costs increase. Since environmental pollution has the urban decentralization force, for the same degree of pollution, a lower preference for the environmental quality can weaken the urban decentralization force of environmental pollution and promote manufacturing workers to agglomerate in the same region. The reason is that the residents are less concerned about the negative impact of pollution. On the contrary, if the residents have a higher preference for environmental quality, the pollution effect caused by industrial production will be amplified, and will thus enhance the urban decentralization force from environmental pollution. In addition, this study also analyzes the situation of the two regions with different pollution tax rates. When the difference in tax rates of the two regions is small, manufacturing workers may agglomerate in one of the two regions. In this case, the effect of the difference in tax rates of the two regions is small. When the difference in tax rates of the two regions is large, it is difficult to attract manufacturing workers in the region with higher pollution tax rate, and all manufacturing workers will agglomerate in the region with low pollution tax rate.